West Suburban Medical Center property owner files suit to take control of hospital

The owner of the property West Suburban Medical Center sits on filed a lawsuit Wednesday to wrestle control of the hospital from his business partner.

New Jersey-based Ramco Healthcare Holdings filed the complaint in Cook County Circuit Court requesting a judge to appoint a receiver to take control of West Suburban's operations, allowing it to reopen.

The suit was filed against Dr. Manoj Prasad, CEO and majority owner of Resilience Healthcare, the private company that owns West Suburban Medical Center and Weiss Memorial Hospital. The minority owner of Resilience and sole owner of Ramco is Rathnaker Reddy Patlola. Ramco owns the hospital property.

In the lawsuit, Patlola accuses Prasad of "financial mismanagement and malfeasance." The complaint also seeks financial damages for back-rent Prasad allegedly owes Patlola.

“The appointment of a receiver is necessary to protect the public interest as the Oak Park community relies on the prompt reopening of (West Suburban) for essential healthcare services, particularly for its low-income population,” the suit reads.

Patlola owns all of Resilience’s hospital properties: the main Oak Park campus, the River Forest campus, Weiss and all associated medical office buildings. Last week, Prasad filed his own suit against Patlola to stop him from attempting to evict Resilience from all three hospital properties.

Patlola also accuses Prasad of misusing a $10 million loan the state of Illinois gave to Resilience in May 2025 to fund operations at the now-closed Weiss, which had been the safety-net hospital in Uptown. Instead, the suit claims Prasad moved the funds to a separate bank account and "misappropriated" the funds for his "direct or indirect benefit."

The lawsuit also accuses Prasad of breaching the hosptials' leases and demands back rent totaling over $20 million.

“Without the immediate appointment of a receiver, there is substantial risk that Dr. Prasad will continue to misappropriate West Suburban’s remaining assets, further deteriorating the West Suburban Medical Center Property and eliminating any possibility of resuming hospital operations," according to the lawsuit.

In a statement, Prasad said the lawsuit is "without merit."

"The operative lease agreement between the parties, which Mr. Patlola signed, is already before the court in the complaint Resilience Healthcare filed last week. That agreement explicitly prohibits Mr. Patlola from terminating the lease or removing the hospital operator. Nothing in today's filing changes that," Prasad said.

He also said the claim about the mismanaged $10 million is false.

"Those funds were sent to an account co-owned by Mr. Patlola and were used for hospital payroll and operating expenses. Mr. Patlola knows this," Prasad said.

On March 25, Prasad announced he was temporarily closing West Suburban Medical Center and furloughing the vast majority of employees. He blamed the hospital’s year-old electronic medical record system “that has never functioned correctly” for the payroll issues. As a result, the hospital was operating on 10% to 15% of its usual revenue, he said.

Meanwhile, Patlola said he also was working to reopen the hospital — but under new management. He said in a statement he was in talks with Insight Hospital & Medical Center to see if the company could take over West Suburban. In a news conference earlier this month, Prasad pushed back on the idea and said he was the man who could get the hospital back up and running.

Some outpatient clinics resumed at West Suburban last week. Prasad reiterated Wednesday that he hopes to have the hospital fully reopened by July.

Read Patlola's full complaint: