Judge expected to place Weiss Memorial Hospital, West Suburban Medical Center in receivership

A judge on Tuesday was expected to place two shuttered Chicago-area safety-net hospitals into receivership.

This means the hospitals will be placed under court-appointed management while their future is sorted out, in the latest twist in a year-long legal battle over the future of Weiss Memorial Hospital in Chicago's Uptown neighborhood, and West Suburban Medical Center in Oak Park.

Resilience, which owns both facilities, has been battling to keep control of them despite the financial and compliance issues that each hospital has run into under the company's leadership.

A proposed settlement would have turned the hospitals over to Insight Healthcare, but Resilience chief executive officer Manoj Prasad backed out of the deal, saying he did not agree to some of its terms.

Weiss closed its emergency department last August due to the losing access to Medicaid and Medicare funding.

West Suburban abruptly shuttered its doors in March, with the exception of some hospital-based clinic and testing services. Hospital leaders were hopeful West Suburban could reopen by July, but this did not happen.

According to records reviewed by the CBS News Chicago Investigators, the owners of West Suburban and Weiss Memorial as of June owed at least $8.9 million in property taxes for 2024 and 2025 tax years.

The property owner for West Suburban has sued Prasad for financial mismanagement.