West Suburban Hospital Lawsuits: Prasad, Patlola, and Ramco

The West Suburban Hospital lawsuits are a cluster of court fights that erupted after West Suburban Medical Center in Oak Park, Illinois, shut down in March 2026. The central case pits the hospital’s two co-owners against each other in Cook County Circuit Court, with allegations that tens of millions of dollars were misappropriated, that rent went unpaid, and that one owner tried to force the other out of the building. Separate federal suits from vendors, former employees, and a wage-theft class add to the pile.

The Two Owners Behind the Dispute

Resilience Healthcare, operating as AUM Global Healthcare Management, acquired West Suburban and Weiss Memorial Hospital through a split ownership structure. Dr. Manoj Prasad, Resilience’s CEO, held 60 percent. Rathnaker “Reddy” Patlola held 40 percent and controlled the hospital real estate through his company, Ramco Healthcare Holdings.¹ Day-to-day management ran through WestLaw Management Group, a Michigan subsidiary wholly owned by Resilience.² That ownership split, and the flow of money between the operating company and the WestLaw subsidiary, is what the current litigation turns on.

When the hospital’s electronic billing system failed starting in March 2025, revenue dropped roughly 90 percent, with an estimated $500 million in charges never captured.³ Weiss Memorial closed in August 2025. West Suburban followed on March 25, 2026. Within weeks, Prasad and Patlola were suing each other.

Prasad’s Lawsuit Against Patlola

Prasad sued first, roughly a week before Patlola’s countersuit landed. His complaint accused Patlola of trying to illegally evict Resilience Healthcare from the hospital properties, which Prasad called “sabotage.” He argued the signed lease prohibited the landlord from terminating the agreement or removing the hospital operator.⁴

Ramco’s Countersuit Against Prasad

On April 22, 2026, Patlola’s company Ramco Healthcare Holdings fired back with a broader complaint. It included seven counts of breach of contract and sought more than $24 million in unpaid rent and fees across West Suburban, Weiss Memorial, and other medical office buildings.⁵ Ramco also asked the court to appoint a receiver to take over hospital operations, remove Prasad, and oversee a potential reopening.⁶

The financial allegations are the most serious. According to the countersuit, Prasad misappropriated a $10 million state loan earmarked for Weiss Memorial. The funds arrived on May 2, 2025, were moved from the hospital’s lockbox account into an operating account, and were then transferred to WestLaw Management Group, the Resilience subsidiary Prasad controlled.⁷⁸ The suit also alleged Prasad transferred at least $35 million into a Fifth Third Bank account that Patlola was denied access to, and that Prasad submitted a fabricated lease document claiming his rent obligation was only $1 per year.⁵

Prasad denied the misappropriation claims through a spokesperson. He said the $10 million went into an account co-owned by Patlola and was used for payroll and operating expenses. Prasad also said he never took compensation beyond his $90,000 annual salary.⁴⁹

What the May 8 Hearing Produced

An eight-and-a-half-hour hearing on May 8, 2026, put witnesses under oath. Irene Dumanis, the former CFO of Resilience Healthcare and former CEO of Weiss Memorial, testified that Prasad regularly directed her to transfer $25,000 to $30,000 every two weeks into the WestLaw Management Group account. She said part of the money was used to supplement Prasad’s payroll in a way intended to avoid detection during his divorce proceedings.¹⁰⁹ Prasad denied the claims on the stand.

Dr. Vishnu Chundi, a former Resilience employee, called the transfers “highly irregular” and described instances of $20 million being moved without the CFO’s knowledge. Former nursing director Sylvia Williams testified that HVAC systems, elevators, and cardiac monitors deteriorated while vendors and staff went unpaid.¹¹

On May 11, 2026, the parties agreed to appoint retired Judge Patrick Sherlock as a special master to review the disputed bank account records.⁵ On June 1, 2026, a Cook County judge denied Ramco’s request for a court-appointed receiver and ordered the parties to continue good-faith negotiations toward restoring care.¹² The Chicago Medical Society and the hospital’s medical staff had both backed the receivership request.⁶

Other Lawsuits Against Resilience Healthcare

Beyond the ownership fight, Resilience has been named in several federal suits since 2023:

A parking service provider at Weiss Memorial won a judgment of nearly $115,000 in outstanding bills and attorney fees in December 2025.¹³
A healthcare service provider filed a breach-of-contract case in fall 2025 over equipment leases and repair services at West Suburban, with potential damages reaching millions.¹³
In Turner v. Resilience Healthcare – West Suburban Medical Center, LLC, a former telecom attendant alleged racial discrimination and retaliation after being fired shortly after reporting discrimination and filing an EEOC charge. A federal judge allowed the discrimination and retaliation claims to proceed while dismissing the harassment count.¹⁴
A collective wage-theft action filed in August 2025 alleged Resilience entities, including West Suburban, edited employee time-clock data to reflect fewer hours than were worked, producing unpaid wages and overtime.¹⁵
A separate suit alleged the hospital failed to offer employees the option to continue healthcare coverage after their employment ended.¹³

Legal analysts cited by ABC7 described the volume and variety of claims as indicators the company is in “serious distress,” noting that a bankruptcy could leave creditors with little to recover.¹³

Government Investigations

Patlola testified he met with the Illinois Office of the Inspector General after the closure to request an investigation into the state loan funds, and he called for an FBI investigation while on the stand. ABC7 reported in May 2026 that state investigations are underway, though no formal FBI probe has been confirmed.¹¹

Where the Litigation Stands

The ownership lawsuit remains active, with a hearing scheduled for June 22, 2026. The special master’s review of the contested bank accounts is proceeding. The receivership motion has been denied, so Prasad remains in control of the operating company while the parties negotiate. None of the estimated $500 million in uncaptured billing claims has been reported as recovered.³¹⁶

The hospital building itself is also closed to patients. On June 11, 2026, the last functioning elevator failed, stranding patients on upper floors and prompting the village of Oak Park to shut down the entire campus. Oak Park now requires at least two working elevators to pass inspection before any reopening.¹⁶ There is no public plan to reopen either West Suburban or Weiss Memorial.

1
Illinois Health Facilities and Services Review Board. West Suburban Medical Center Change of Ownership Application
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Illinois Health Facilities and Services Review Board. West Suburban Medical Center Post-Transaction Organizational Chart
3
Oak Park. Government Audits of West Suburban Medical Reveal Details of Crisis
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ABC 7 Chicago. New Lawsuit Accuses Shuttered Oak Park Hospital CEO of Financial Mismanagement
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Oak Park. Bank Accounts at Center of West Sub Hospital Fight Will Be Reviewed
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Chicago Tribune. West Suburban Ramco Lawsuit
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Oak Park. West Suburban Lawsuit
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Austin Weekly News. West Suburban Lawsuit
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Chicago Tribune. West Suburban Hospital Lawsuits
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Oak Park. West Sub Owners Court
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ABC 7 Chicago. Resilience Healthcare CEO Accused of Moving Millions of Taxpayer Dollars
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CBS News Chicago. West Suburban Medical Center Reopening Questions
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ABC 7 Chicago. Federal Court Cases Lodged Against Resilience Healthcare
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Justia. Turner v. Resilience Healthcare – West Suburban Medical Center, LLC
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IfIghtForYourRights.com. Resilience Healthcare Hourly Paid Employees
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Chicago Tribune. West Suburban Hospital Elevator