Westlake Hospital filed for bankruptcy Tuesday morning citing economic and industry hardship caused by health care policy implemented at the state level.
Owners of the hospital at 1225 W. Lake St. in Melrose Park say it is losing nearly $3 million a month and no buyer has emerged for the facility that is about 80% empty.
The owners also blame the $4 million in Medicaid funding lost through the Illinois Hospital Assessment Program in 2018. They also say the village of Melrose Park withdrawing $500,000 for Westlake’s redevelopment plan has stifled growth.
SRC Hospital Investment II LLC requested a Chapter 7 bankruptcy trustee be to oversee the hospital.
“We do not relish filing bankruptcy petitions for the hospital,” CEO Jim Edwards said in a statement. “Ultimately, it is the decision of the trustee whether he wants to continue operating the hospital beyond the initial period.”
If the trustee chooses to close Westlake, Edwards said, current patients will be transferred to one of the nearby hospitals such as Gottlieb Memorial Hospital in Melrose Park, Loyola Medical Center in Maywood or West Suburban Medical Center in Oak Park.
Melrose Park has been in a bitter legal battle with the owners of Westlake Hospital since April when it first announced it had plans of closing the facility. The village did not respond for a request of comment Tuesday.
