Pipeline Health agrees to $1.5M settlement over Illinois hospital acquisition

Pipeline and its affiliates did not confess any misbehavior or liability as part of the settlement.

The village of Melrose Park alleged Los Angeles-based Pipeline Health made fraudulent misrepresentations when it got Westlake Hospital. The lawsuit declared Pipeline Health and its owners assured to keep Westlake Hospital open when they were purchasing it and 2 other medical facilities from Dallas-based Tenet Healthcare. Pipeline revealed strategies to close Westlake Hospital a few weeks after the transaction closed.

The out-of-court settlement, approved by the village board July 27, also resolves a 2nd claim filed by Melrose Park in Cook County Circuit Court challenging an April 2019 decision by the state Health Facilities and Services Review Board to authorize Pipelines application to close the healthcare facility. Once that board approved the application to shutter the healthcare facility, Pipeline began unwinding services at the hospital and declared personal bankruptcy liquidation in August..

Pipeline Health, the owner of now-closed Westlake Healthcare facility in Melrose Park, Ill.,, has actually agreed to pay $1.5 million to solve a 2019 suit in which Melrose Park declared Pipeline acquired the 230-bed health center under incorrect pretenses, according to the Chicago Tribune..

The lawsuit even more alleged Pipeline kept its plans to close down the 230-bed healthcare facility secret until the transaction closed to prevent opposition from village leaders and neighborhood members.

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