West Suburban Medical Center could re-open by July amid debt issues

West Suburban Medical Center plans to reopen amid debt problems

It’s been closed since Friday, but the owner of West Suburban Medical Center says it plans to reopen by July. Fox Chicago’s Lauren Scafidi explains the problems that caused them to shut their doors and how they plan to open back up.

OAK PARK, Ill. - West Suburban Medical Center in Oak Park has shut down after facing mounting debt and serious financial problems. State leaders say the hospital failed to repay millions in aid and is now in foreclosure. The owner says many of the issues were inherited and points to a failed billing system as a major cause. He now claims a fix is in place and hopes to reopen by early July.

What we know:

West Suburban Hospital closed its doors Friday, forcing patients to be transferred to other facilities.

State Representative La Shawn Ford says the hospital and its sister facility, Weiss Memorial Hospital, received more than 30 million dollars in advance payments meant to keep operations running and staff paid.

Officials say none of that money has been repaid.

The hospital is now facing more than 70 million dollars in debt owed to the state, along with tens of millions more in unpaid bills and property taxes.

Leaders say the building is now in foreclosure and unpaid taxes are being sold.

A state review also found the hospital had no cash reserves, declining patient numbers, and missing financial reports.

Ford says the state is now closely monitoring the situation to protect patients.

"Daily meetings with leadership at the hospital, monitoring staff levels, and making sure patients are safely transferred," said Ford. 

Dig deeper:

The owner of the hospital and CEO of Resilience Healthcare, Dr. Manoj Prasad, says many of the problems started before he took over during bankruptcy in 2022.

He says the hospital had empty bank accounts, millions in debt, and even basic medical equipment that was failing.

Prasad says the biggest issue was a failed computer system that prevented the hospital from properly billing for care.

"We were only collecting about ten percent of what our normal revenues are," Dr. Prasad said. 

What they're saying:

Prasad says his team has now identified the billing issue and put new systems in place to track charges and submit claims correctly.

He says a backup system using paper records has also been added to make sure nothing is missed.

Prasad says those changes are already helping recover millions in lost revenue.

What's next:

Prasad says he is aiming to reopen West Suburban Hospital by early July.

State officials continue to monitor patient transfers and safety following the closure.

The future of the hospital now depends on whether the new systems and financial plan can stabilize operations and restore trust in the community.