El Segundo, Calif.-based Pipeline Health System's sale of two of two hospitals to Princeton, N.J.-based Ramco Healthcare Holdings and Resilience Healthcare was approved Nov. 29 by the U.S. Bankruptcy Court for the Southern District of Texas, subject to docketing of a final order.
Resilience will assume operations of Weiss Memorial Hospital in Chicago and West Suburban Medical Center in Oak Park, Ill., on Dec. 3, Pipeline said in a news release shared with Becker's. Resilience is led by healthcare executive Manoj Prasad and financial partner Rathnakar, who manages Ramco.
Pipeline filed for Chapter 11 bankruptcy in October because of several factors, including financial challenges tied to skyrocketing costs and delayed payments from insurance plans.
Since acquiring ownership of the hospitals in 2019, Pipeline said it has invested $60 million to improve facilities, add technology and expand clinical programs. The hospitals employ a combined total of 1,700 employees.
In a memo sent Nov. 30 to employees and physicians of the two hospitals, Pipeline CEO Andrei Soran wrote, "We look forward to seeing the future success of Weiss and West Suburban unfold as you continue in your important work. Best wishes for a future rich in achievement and fulfillment."