Hospital with new $5M orthopedic center to change hands

Orthopedic

Chicago-based Weiss Memorial Hospital, which debuted a $5 million orthopedic center in December, could soon be sold to Michigan.-based company Resilience Healthcare.

The hospital's parent company, El Segundo, Calif.-based Pipeline Health, signed a letter of intent to sell Weiss Memorial Hospital and West Suburban Medical Center in Oak Park, Ill., to Resilience for $92 million.

Since acquiring the Illinois hospitals for $70 million in 2019, Pipeline said it has invested $60 million in both facilities, including Weiss' 17-private room orthopedic center.

Manoj Prasad, healthcare consultant and leader of Resilience, aims to improve the financial position of both hospitals to make them sustainable and continue to provide care in their communities. 

"My career turning around hospitals and healthcare organizations has been based on collaborations with and alignment of the medical staff, nurses, support staff and staff on the front lines at hospitals," Mr. Prasad said in a March 10 statement. "I listen to them and to our patients and community partners and they see I am willing to roll up my sleeves and work side by side with them. We get aligned on the common goals of providing our patients high quality and affordable care and turning around a treasured community asset."

The sale comes as hospitals across the country continue to struggle with staffing shortages and financial trouble during the COVID-19 pandemic.

"We have been struggling to make these hospitals successful," said Nick Orzano, Pipeline founder and board member. "Manoj approached us to take on the challenge, and we believe he is an excellent fit, with a proven track record of success, for the communities we serve."

Pipeline and Resilience are submitting a change of ownership application with the Illinois Health Facilities and Services Review Board. The application could be reviewed by the board in late April or early June, according to Block Club Chicago.

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