The owner of Weiss and West Suburban hospitals has reached an agreement to sell the hospitals, despite a recent bankruptcy filing.

California-based Pipeline Health has reached an agreement with Resilience Healthcare and Ramco Healthcare Holdings for Resilience and Ramco to take over hospital operations on December 2, Pipeline announced Wednesday. The deal still needs to be approved by the U.S. Bankruptcy Court for the Southern District of Texas.

The second phase of the sale, expected to be completed in the coming months, would involve Ramco’s purchase of properties related to the facilities.

The deal comes after Pipeline, which has owned the hospitals since 2019, filed for Chapter 11 bankruptcy in October, putting the future of the sale in doubt. The state board first approved the sale to Resilience for $92 million in June.

After years of twists and turns, the fortunes of the Weiss Memorial in Chicago’s Uptown neighborhood and the West Suburban Medical Center in Oak Park and the resentment of their owner, Pipeline.

Pipeline angered community members and leaders shortly after it bought two hospitals and Westlake Hospital in Melrose Park. Pipeline initially said it would change three facilities, but then said it would close Westlake just weeks after taking ownership, sparking fears it had similar plans for Weiss and West Suburban.

These fears were further fueled when Pipeline agreed to sell the Weiss parking lot to a developer planning to build apartments on the site.

As part of the sale, Resilience Pipeline plans to use $12 million from the sale of the Weiss parking lot at Resilience to reinvest in hospitals.

He said Resilience is a newly formed for-profit company led by Manoj Prasad, who originally trained as a doctor but who has spent most of his career helping transform healthcare facilities.

New Jersey businessman Reddy Rathnakar Patlola is Resilience’s financial partner and will invest in the acquisition and operations. Patloli’s company, Ramco Healthcare Holdings, will own the land on which the hospitals are located, and Resilience will enter into long-term leases with Patlola.

More in the future.

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