Landlord of closed Illinois hospitals countersues operator for ‘financial mismanagement’

Ramco Healthcare Holdings, the landlord of two Chicago-area hospitals that closed in August 2025 and March 2026, respectively, has filed a lawsuit against the facilities’ operator, Resilience Healthcare, alleging financial mismanagement. Ramco’s lawsuit comes one week after Resilience had filed an April 14 complaint against Ramco alleging lease violations.

Six things to know:

1. Ramco Healthcare Holdings filed a complaint April 22 in the Circuit Court of Cook County, Ill., against Resilience Healthcare entities and affiliated companies. The lawsuit alleges “financial mismanagement and malfeasance” by Resilience Healthcare CEO Manoj Prasad, MD, PhD, and asserts breach of contract claims against the Resilience entities as well as a conversion claim against Westlaw Management group. It also seeks the appointment of receivers for certain operations, according to the filing.

2. The complaint centers on West Suburban Medical Center in Oak Park, Ill., which closed in March. Ramco alleges Dr. Prasad “made the unilateral decision to close [the hospital], with no viable plan to reopen,” and claims the closure harmed the community and more than 700 employees.

3. Ramco also alleges misappropriation of state funds tied to Weiss Memorial Hospital in Chicago, which closed in August 2025. According to the complaint, Illinois provided Weiss an additional $10 million loan for operations in May 2025, on top of $20 million previously loaned to Weiss and West Suburban. The filing alleges the $10 million was transferred the same day to a Westlaw bank account and “was not used to fund” Weiss operations, but was instead misappropriated for Dr. Prasad’s “direct or indirect benefit.”

4. In an April 23 statement shared with Becker’s, a Resilience spokesperson said Ramco’s lawsuit is “without merit” and noted the lease agreement at issue is already before the court. The spokesperson disputed the allegations regarding state funds, stating that the $10 million was deposited into a jointly controlled account and was used for payroll and operating expenses.

“While Mr. Patlola files lawsuits, West Suburban Medical Center is treating patients,” the spokesperson said. “The hospital has resumed outpatient services, staff are returning from furlough, and the focus is to achieve full operations by July.”

5. West Suburban Medical Center began reopening limited outpatient services in mid-April following its March closure, while emergency and inpatient services remain suspended. Weiss Memorial Hospital has remained closed since August 2025.

6. This latest filing by Ramco follows a complaint filed April 14 by Resilience against Ramco over its eviction notices, which alleged the company and its owner, Rathnakar Patlola, engaged in a pattern of conduct aimed at forcing out hospital management for financial gain. Specifically, Resilience Healthcare alleged the landlord failed to maintain key infrastructure, demanded rent despite the hospitals’ financial distress and refused to engage in required good-faith negotiations. The earlier lawsuit seeks a declaratory judgment that the eviction notices are invalid and to prevent Ramco from removing Resilience as operator.

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