Legal war erupts over West Suburban Medical Center's $24M debt crisis
The property owner for West Suburban Medical Center in Oak Park is suing the hospital's ceo for financial mismanagement.
The lawsuit filed by Ramco Holdings is seeking to recover more than $24 million in unpaid rent from Resilience Healthcare.
The suit also claims Resilience CEO Manoj Prasad misappropriated a state loan worth $10 million.
Ramco is asking the court to give control of hospital operations to a third-party receiver so it can reopen. Prasad, however, says the lawsuit is "without merit."
West Suburban abruptly closed back in March as it could not make payroll, but resumed hospital-based clinic and testing services last Wednesday.
Earlier this month, landlords also threatened to evict West Suburban's River Forest campus due to unpaid rent. our News Chicago spotted a five-day notice on the front door. Prasad also said that the eviction was "without merit," and a complaint was filed against the property owner. Prasad, at the time of the filing, claimed that the property owner had signed a lease that prevents them from evicting the campus.
