Attorneys drop out of West Suburban hospital legal fight citing 'fundamental disagreements'

OAK PARK, Ill. (WLS) -- Attorneys representing one of the owners of a shuttered safety-net hospital embroiled in a court battle have asked to withdraw from the proceedings, citing "fundamental disagreements" with their client.

It's the latest news in an ongoing fight over the future of West Suburban Medical Center in Oak Park.

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The ABC7 I-Team has been following the safety-net hospital's closure closely as it employed hundreds of people and served thousands of patients a year, regardless of whether those patients could pay for healthcare. Community leaders said the hospital's sudden closure created a "medical desert" in the area.

Shortly after its closure, hospital CEO Manoj Prasad and landowner Rathnaker Patlola sued each other, pointing the finger at who's to blame for the hospital's decline and mismanagement over the years since it was acquired by the owners' private company Resilience Healthcare in December 2022.

Both lawsuits were consolidated into a single proceeding, and over the past few weeks, the owners have been engaged in settlement negotiations that could result in a plan for the hospital to potentially reopen.

But on Monday, according to court records, attorneys representing Resilience Healthcare asked to withdraw from the case, writing, "Circumstances have developed that have created fundamental disagreements between undersigned counsel and the Client regarding the representation and the Client's objectives in this matter."

This follows a surprising development last week when more than 500 furloughed West Suburban Medical Center employees received "permanent" lay-off notices.

At the time, sources close to the settlement discussions told the I-Team the notices were "a big deal" and that Prasad "had not consulted with anyone" involved with the ongoing court case about plans to permanently lay off the remaining furloughed employees. One source also told the I-Team that the judge overseeing the legal proceeding, Cook County Circuit Court Judge Patrick Stanton, was surprised by the news and "upset" it was not disclosed in a court hearing that occurred earlier that same day.

Attorneys for both sides have been meeting behind closed doors weekly with Judge Stanton to negotiate a settlement which could include the hospital reopening under new ownership.

The I-Team has learned a settlement conference on Monday ended with nothing finalized, and another meeting with Judge Stanton has been scheduled for later in the week.

The video in the player above is from a previous report.