Pair of New Jersey Execs Buy Chicago-Area Hospitals for $92M
New Jersey business executive Reddy Rathnakar Patlola appeared before the Illinois Health Facilities and Services Review Board and obtained regulatory approval for his company Ramco Healthcare Holdings, LLC to purchase 100% of the real estate associated with two Chicago area community hospitals as part of a partnership with a hospital turnaround expert who will run the operations of those healthcare facilities.
As part of the proposed transaction for West Suburban Medical Center in Oak Park, IL and Weiss Memorial Hospital on Chicago’s North Side, Patlola will also be a partner in the operating company which will be led by business partner Manoj Prasad, who has more than 20 years of successful hospital turnaround experience.
The new operating company will be AUM Global Healthcare Management LLC, d.b.a. Resilience Healthcare. Prasad will serve as the CEO of Resilience Healthcare.
Ramco is buying the properties from Pipeline Health System, a Los Angeles based healthcare company. Following the transaction, Ramco will enter into and maintain a long-term multi-year lease with Resilience for the real property to ensure Resilience can maintain operational control over the hospitals.
Patlola described to the state board his plan to invest in the various building infrastructure and market available office space to physician practices in the community.
The total purchase price is $92 million for the real estate, which includes all Pipeline assets in the greater Chicago area. No part of the purchase price is being attributed to Resilience or any other operating entity that is part of the transaction.
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