A Cook County judge expressed frustration Tuesday over the delay in finalizing a settlement agreement involving Weiss and West Suburban hospitals, which were previously owned by Dr. Manoj Prasad. The agreement, reached in a private meeting on May 29, calls for the sale of the shuttered hospitals to Insight Health Systems for $1 and requires Prasad, who serves as CEO and majority owner of Resilience Healthcare—the company operating the hospitals—to resign from his leadership position.
Despite both Ramco Healthcare Holdings, the owner of the hospital properties, and Resilience agreeing to the settlement terms, Ramco has accused Resilience of stalling the process. In response, Ramco sought the court’s intervention in late July, requesting enforcement of the settlement or, alternatively, the appointment of a receiver to manage the hospitals. Ramco emphasized the urgency of the matter, noting that the hospitals’ potential reopening depends on resolving the dispute quickly.
During Tuesday’s hearing before Cook County Circuit Judge Patrick Stanton, the court questioned Resilience’s rationale for the delay. Stanton pointed out that no specific disagreements over settlement terms had been communicated, suggesting that Resilience was attempting to back out of the deal. “Someone changed their mind,” the judge said. “This is someone who wants out of a deal.”
Resilience’s legal representation countered, arguing the drafted settlement agreement contained terms extending beyond those agreed upon in May, and therefore should not be enforced. The company also raised concerns about Prasad’s capacity to assent to the initial agreement, citing a “health incident” related to low blood sugar during the negotiation. According to court filings, this event could cast doubt on whether Prasad fully understood or voluntarily consented to the terms.
Judge Stanton, however, expressed skepticism toward this defense. He noted that Prasad acknowledged feeling unwell due to not eating but was provided food during the meeting and engaged in extended discussions without further incident. Stanton remarked that the health issue was “news” to him, as he personally spent hours speaking with Prasad that day.
Another argument from Resilience questioned why the settlement should move forward since Insight Health Systems was not yet formally involved in the court proceedings. Stanton clarified that the agreement did not legally obligate Insight to purchase the hospitals, but rather outlined the conditions if Insight chose to proceed.
Separately, the judge and attorneys discussed a motion from S&T Consulting and Management seeking to intervene in the case. S&T claims to have operated emergency and mental health departments at West Suburban and asserts a contractual right of first refusal to manage both West Suburban and Weiss hospitals.
The court also granted Prasad the ability to participate in the proceedings as an individual, expanding the scope from just the corporate entities involved. The next hearing is scheduled for September 11.
The closure of both hospitals has drawn attention from community leaders and former staff advocating for their reopening. West Suburban ceased operations in March amid financial difficulties and billing challenges, while Weiss shut down approximately a year earlier after losing the ability to bill Medicare due to regulatory compliance failures.