The closure of Weiss Memorial Hospital, located at 4646 N. Marine Drive, has sparked significant concern and criticism directed at its owner, Dr. Manoj Prasad of Resilience Healthcare.
Originally shuttered on a Friday, just a day before the expiration of its contract with federal health insurance programs Medicare and Medicaid, the hospital’s closure has left many wondering about its future, with only certain departments, including radiology and cardiology, expected to continue functioning in a limited capacity.
Dr. Prasad has publicly requested federal support to help reopen the hospital, claiming that the inability to bill for federal health services forced the closure.
He acknowledged that he is collaborating with state legislators to address the hospital’s federal insurance status, a process he described as potentially taking up to a year without any guarantees of success.
This situation has arisen after a decision by the Centers for Medicare and Medicaid Services to remove Weiss from their insurance programs due to compliance issues, including nursing services and emergency services, as identified by investigators earlier.
One significant issue highlighted was the lack of staffing in the emergency department, which exacerbated already established concerns regarding hospital operations.
Additionally, Weiss had recently experienced significant operational challenges when a failure of its air conditioning led to it refusing new patients and redirecting existing patients to other hospitals, including West Suburban Medical Center, which Dr. Prasad also owns and is undergoing its own repair issues.
“We want to make sure that we comply with everything that is needed, but given the 113-year-old building [at West Suburban] and the 76-year-old building [at Weiss], that is not an easy task,” stated Prasad.
He expressed that significant funding is necessary—funding that he currently lacks.
The press conference marking this announcement was Prasad’s first public statement since federal regulators informed his team about the hospital’s removal from the Medicare and Medicaid programs on July 24.
Funding has historically been problematic for Resilience Healthcare, which acquired Weiss and West Suburban for $92 million in late 2022 after the previous owners, Pipeline Healthcare, left the facilities in dire financial conditions.
Prasad mentioned that he inherited a staggering $50 million yearly deficit when he took over.
During the first weeks of operation, he noted, “We couldn’t even buy a bottle of Tylenol.
No one has wanted to lend any money to us, so we’ve had to fight and figure it out.
The hospitals, characterized as safety-net facilities earlier in 2023 with help from state lawmakers, became eligible for federal funds through the Medicare and Medicaid programs.
However, they remained classified as “low priority” by the state in terms of fund allocations, according to Prasad.
Despite their financial troubles, he claimed, “Somehow, we’ve managed to break even.”
Recent data indicated that Medicaid payments accounted for nearly 65 percent of Weiss’ inpatient revenues during 2024.
In an effort to stabilize financial operations, Resilience applied for a $10 million loan from a private lender the previous week, but was denied, raising further concerns about West Suburban’s future.
“If funds aren’t drawn up soon, West Suburban’s fate could be the same as Weiss’,” Prasad warned.
Outside Weiss, a rally was organized by concerned neighbors and elected officials on the day of its closure, advocating for the hospital’s temporary reinstatement into the federal health programs while addressing management issues.
Former employees of Weiss participated, voicing allegations of mismanagement against Dr. Prasad and calling attention to issues that have plagued the hospital and its staff.
State Representative Hoan Huynh criticized Prasad’s management style, stating, “We’ve seen over and over again the lack of care for our nurses, for our doctors, for our patients.
The CEO has stripped away this hospital to its bare bones.”
Legislators, including State Senator Mike Simmons and Alderman Leni Manaa-Hoppenworth (48th), have publicly urged Prasad to take responsibility for the hospital’s troubles and have co-signed a letter calling for an eight-week extension from the Medicare Services administration.
This proposed extension aims to allow the hospital to rectify compliance issues while remaining operational.
In a statement to the press, Alderman Angela Clay (46th) solidified that sentiment, claiming that Weiss ownership ignored numerous violations that jeopardized federal funding, failing to communicate adequately with local officials or staff about impending concerns.
Critics claim that managers and hospital leaders, including Prasad, were informed of the closure weeks before the public announcement yet took no steps to involve the community in discussions.
Resilience Healthcare, in response to the criticism, issued a lengthy statement attempting to defend its position: “Resilience Healthcare has faced both overwhelming challenges and unfair criticism.
What we would ask our numerous critics to understand is the dire situation we had to step into in December of 2022 when no one else was willing to.
Without help from external lenders, we stepped forward and dedicated all our resources to save two community hospitals that were about to close.”
However, former Weiss emergency room nurse Daniel Maser painted a stark picture of the internal struggles prior to the closure.
He cited a lack of communication from leadership, worsening staff morale, and deteriorating conditions, indicating that many nursing concerns went unheeded.
He reported instances of inadequate resources, such as dirty linens and insufficient staffing levels compounded by leadership’s lack of responsiveness to complaints.
One anonymous former employee likened Prasad to a dispassionate businessman, stating, “He’s kind of an Elon [Musk] guy.
He treated the hospital like it was the [Department of Government Efficiency].
He’s a capitalist.
He’d cut costs in every department and make everyone work twice as hard for the same amount of money, which no one liked.”
During the Friday press conference, Prasad acknowledged that Resilience’s approach involved cutting non-essential costs, which led to unrest among the staff, noting that some of the complaints were retaliatory responses from staff unhappy with organizational changes.
Interestingly, the previous administration sold off hospital property for $8 million to a developer who subsequently erected a 300-unit apartment building on the site.
This move was met with protests from local residents who saw it as detrimental to the hospital’s legacy and potential growth.
As discussions surrounding healthcare accessibility heat up, the whispers about possible land acquisitions for Weiss Memorial Hospital have left residents on edge.
When asked about the possibility of selling the hospital property to developers, Prasad stated emphatically that his priority was healthcare and reaffirmed his intent to retain the hospital in its current standing rather than putting it on the market.
image source from：blockclubchicago
