Pipeline Health files for bankruptcy, promises to continue effort to sell two Illinois hospitals

Los Angeles-based Pipeline Health said Tuesday it will continue to move forward with the sale of its two Illinois hospitals as it goes through Chapter 11 bankruptcy.

The Illinois Health Facilities and Services Review Board signed off in June on the sale of Pipeline’s Weiss Memorial Hospital in Chicago and West Suburban Medical Center in Oak Park to Michigan-based Resilience Healthcare for $92 million.

Pipeline reiterated this week it will “continue to pursue all available options” to complete the deal, adding that both facilities will remain open through the bankruptcy.

“If the buyer is unable to close the sale, Pipeline plans to undertake a marketing process to identify other potential buyers,” the health system said.

A spokeswoman for Pipeline said she could not provide a timeline for the sale.

Reddy Rathnaker Patlola, CEO of Ramco Healthcare Holdings, LLC and a partner in Resilience Healthcare, said Tuesday they are “closely following developments in the bankruptcy matter and we remain in communication with Pipeline to complete the transaction.”

“Resilience Healthcare remains committed to operating Weiss and West Suburban Hospitals for the long term,” he said.

Pipeline acquired the two hospitals, as well as Westlake Hospital in Melrose Park, in 2019 for $70 million. It announced shortly afterward it would shutter Westlake, and the hospital closed later that year after it filed for bankruptcy.