Weiss and West Suburban hospital owner has filed for Chapter 11 bankruptcy.

Pipeline Health System, a profit-driven health care system based in California, filed for bankruptcy waiver on Sunday in the Bankruptcy Court for the South Texas District. He has owned Weiss in Uptown and West Suburban in Oak Park since 2019.

Pipeline said in a press release that it plans to “continue operating in the normal course of business during the Chapter 11 proceedings,” keeping hospitals open. Pipeline has announced that it will continue to pay salaries. According to Pipeline, Weiss has 650 employees and West Suburban has 867 employees.

“We intend to undergo a restructuring process to enable our hospitals to remain open and operate in their communities while providing the hospital system with a more secure and sustainable financial position for the future,” said Pipeline CEO Andrei Soran in a press release.

He said patients don’t have to reschedule their appointments.

The bankruptcy is the result of challenges including rising labor and supply costs, lower revenues and late payments from certain insurance plans, Pipeline said.

The news came just months after the state’s Healthcare Facilities and Services Review Board approved Pipeline’s plans to sell Weiss and West Suburban for $ 92 million to Resilience Healthcare, a newly formed commercial firm led by Manoj Prasad, who said that he spent most of his career helping to turn around healthcare facilities.

Pipeline announced in a press release that it plans to continue “exploring all available options to finalize planned sales” of hospitals to Resilience.

“If the buyer is unable to complete the sale, Pipeline plans to conduct a marketing process to identify other potential buyers,” Pipeline said.

A Pipeline spokeswoman declined to comment on a possible schedule for the sale to close or “factors leading to the delay.”

Mark Silberman, a lawyer at Benesch, representing Resilience, said: “We remain hopeful and optimistic that we will be able to provide care for the community.”

Pipeline has a rich history with its Chicago hospitals.

In 2019, Pipeline angered community members and leaders shortly after buying two hospitals and the Westlake Hospital in Melrose Park. Pipeline initially said it would reverse the three facilities, but instead said it would close Westlake just weeks after the takeover, raising concerns it had similar plans for Weiss and West Suburban.

These concerns were recently fueled when Pipeline agreed to sell the Weiss parking lot to a developer who hopes to build apartments on the site.

Pipeline also operates four hospitals in the Los Angeles area and a hospital in Dallas, Texas.

More to come.

#Weiss #hospital #owner #West #Suburban #filing #bankruptcy

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *