Illinois State Agencies Investigate West Suburban Medical Center Closure Amid Millions in Taxpayer Loans
State Departments Launch Probe Into Oak Park Hospital Financials After Sudden Shutdown
OAK PARK, Illinois -- Multiple state agencies are investigating the finances of West Suburban Medical Center following its abrupt closure last month, according to Illinois state Rep. La Shawn Ford. The investigation comes after the 8th District state representative learned the hospital's CEO was served an eviction notice from the property owner, citing more than $10.2 million in debt.
The hospital announced it would close on March 25, but state officials had been warned about the financial situation more than a month earlier, documents obtained by ABC7 Chicago reveal.
Taxpayer Money and Leadership Failures
The Chicago Medical Society and former physicians sent a letter to Illinois Gov. JB Pritzker requesting immediate state intervention to reopen the facility. The letter stated the hospital serves poor people and people at the highest risk, urging the governor to exercise emergency authority to reopen the safety-net institution.
"Through a spokesperson, CEO Manoj Prasad told the I-Team the eviction notice is without merit and that he would address this matter through the appropriate legal channels," Ford said.
Ford told the ABC7 I-Team that several state agencies are probing the finances of West Suburban Medical Center leading up to its closure.
The Illinois Department of Public Health, Department of Human Services, and Healthcare and Family Services are all looking into the hospital and checking out the financials, Ford said. There is an ongoing investigation because there have been millions of dollars provided in taxpayer dollars to keep the hospital afloat and it still closed.
A spokesperson for HFS previously told the I-Team at least $30 million was loaned to the facility since 2023, including a $10 million loan one year ago.
Property Owner Plans to Remove Management
The I-Team obtained a copy of an eviction notice served to CEO Prasad and Resilience Healthcare dated April 9. The notice claimed the hospital owes more than $10.2 million for the use of the property.
A spokesperson for Ramco Healthcare Holdings told the I-Team this was the first step in a plan to remove Prasad and the current management and find another person or institution to run the hospital's operations.
State officials said they were not presented with any viable plan to turn around their fiscal and operational issues.
Community Demands Reopening and Accountability
Dr. Vishnu Chundi, a former West Suburban Medical Center Physician and co-chair of the West Suburban Hospital Task Force to Reopen and Restore Care, signed the letter sent to Governor Pritzker. Chundi told the I-Team the governor does have emergency authority to open a hospital for at-need on an at-need basis.
The hospital serves poor people, serves people at the highest risk. And we call on the governor to open this hospital as soon as possible.
Former West Suburban Nursing Director Sylvia Williams said she has worked at the facility serving her community for nearly two decades.
We really want to make sure the hospital gets open and that the authorities do some investigation about why those monies were not appropriated to the hospitals, both Weiss Memorial and to West Suburban.
Williams told the I-Team the equipment they needed was not purchased because the monies were not spent on hospital equipment.
Safety-Net Hospitals Face Peril Across Illinois
As health care providers in Illinois are reacting to the surprise closure, more details about financial chaos at West Suburban have emerged.
CommunityHealth CEO Stephanie Willding told the I-Team the closure was not shocking but very surprising in the way it occurred and how quickly it occurred.
I think there is a lot of safety-net providers, hospitals, federally qualified health centers that are experiencing financial crisis, Willding said. Whether or not they are on the brink of closure or scaling back services, they are definitely having to make changes to keep their doors open and keep serving the community.
Willding said health centers and safety-net hospitals lose money on every visit. A health center, federal qualified health center, safety-net hospital. They are losing money on every visit, Willding said.
Willding said she expects it to become even more difficult when new work requirements for Medicaid go into effect next year.
Humboldt Park Health CEO Jose Sanchez told the I-Team the blame for any privately owned company's closure lies at the feet of the owner.
If you decide that you are going to be a capital investor and you purchase a hospital, then you are responsible to take care of everybody, regardless of their ability to pay.
State Representatives Call for Leadership Change
State Rep. La Shawn Ford told the I-Team his constituents and the community are demanding a change in leadership for the beleaguered healthcare facility and they want Resilience Healthcare CEO Prasad out.
It closed on his watch which means the leadership failed the community, Ford said.
Ford hopes state officials and the community can come together to prevent a healthcare desert.
What this hospital needs now more than ever is stability, Ford said.
Ongoing State Investigation
The I-Team reached out to multiple state departments and the governor's office for comment about the ongoing financial investigation into West Suburban's closure but have not heard back.
Ford told the I-Team the community is demanding accountability and new leadership at the hospital.
The hospital has been through so many challenges, and if it is to open again, it has to open with stability and strong leadership, Ford said.