El Segundo, Calif.-based Pipeline Health System, which filed for Chapter 11 bankruptcy in October, has agreed to sell two Chicago hospitals to Princeton, N.J.-based Ramco Healthcare Holdings and Resilience Healthcare.
Pending approval of a motion submitted Nov. 22 to the U.S. Bankruptcy Court for the Southern District of Texas, Resilience is expected to assume operations of the two hospitals — Weiss Memorial Hospital in Chicago and West Suburban Medical Center in Oak Park, Ill. — on Dec. 2.
Phase one of the sale includes the Dec. 2 transition to Resilience of the operations affiliated with the two hospitals, the medical office building adjacent to Weiss, the River Forest Medical Campus affiliated with West Suburban and the Chicago Health Medical Group, Pipeline said in a Nov. 23 news release. An assurance of continuity will be given to hospital employees, physicians and patients at Weiss and West Suburban.
Phase two of the sale involves Ramco buying the real estate associated with the facilities and is expected to close in the coming months. Financial terms of the transaction were not disclosed.
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.
"We are pleased to have reached this important milestone after months of discussion, planning and full transparency, and we are grateful to the physicians and staff who have continued their dedicated service to their patients during this year of change," Pipeline CEO Andrei Soran said in the release. "We are proud of the investments we have made in these Chicago facilities, and we wish Weiss and West Suburban all the best in their continued service to their communities."
Resilience is led by healthcare executive Manoj Prasad and financial partner Rathnakar Patlola, who manages Ramco.