Recent News About Pipeline Health Systems
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Judge rejects motion to dismiss, says company can't skirt role as employer under WARN Act
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Westlake owners Pipeline Health Systems closed hospital under bankruptcy in 2019, saying they were losing millions of dollars per month. The state's attorney says the bankruptcy involved a "sham entity."
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Court can't order hospital to reopen, but lawsuit demands owners pay for 'fraud'
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The parent company of Westlake Hospital in Melrose Park is arguing hospital workers had plenty of advance notice the facility was closing, contrary to a suit by the workers that alleges employees were "blindsided" when the owners abruptly shut down, allegedly violating federal labor law.
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A federal bankruptcy judge has cleared the way for the village of Melrose Park to resume its effort to punish the owners of Westlake Hospital for using bankruptcy to close the hospital.
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A federal judge has ruled bankruptcy laws should block lawyers representing the village of Melrose Park from continuing to sue the owners of a now-shuttered suburban hospital for using federal bankruptcy protection to close the hospital, despite a state court order blocking the owners from locking the doors at the financially-troubled health care facility.
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The owners of Westlake Hospital in Melrose Park are being sued again, this time by ex-workers who claim they broke the WARN Act when they closed the hospital.
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As a Cook County judge prepares to handle the question of whether to hold the owner of a Melrose Park hospital in contempt for filing bankruptcy, the hospital owner has in turn asked a federal bankruptcy judge to find the village of Melrose Park broke federal law by asking the Cook County judge to find them in contempt.
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Saying the owners of Westlake Hospital have proceeded in “bad faith,” the village of Melrose Park has asked a federal bankruptcy court to refuse to allow Westlake Hospital to proceed with its bankruptcy and the fate of the financially-troubled hospital should be decided in Cook County court.
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Faced with a possible court order forcing them to keep open a hospital they claim is hemorrhaging money, the owners of Melrose Park’s Westlake Hospital have asked a federal bankruptcy court to take oversight of the owners’ long-running efforts to wind down operations at the hospital, and take it out from under the Cook County courts, for now.
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The owner of Westlake Hospital in Melrose Park said village officials and Cook County State’s Attorney Kim Foxx have no skin in the game to keep the financially struggling facility open against the owner’s wishes.
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Lawyers for the village of Melrose Park say two people appointed by Gov. JB Pritzker to a state hospital regulatory panel improperly voted to allow a controversy-plagued hospital to close, because their appointments had not yet been approved by the state Senate.
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Class action law firm Edelson P.C. could be poised to claim a cut of the property taxes paid to Melrose Park by Westlake Hospital, should the firm succeed in helping Melrose Park stop the hospital's owners from closing the health care facility.
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'Complex, complicated' court fight over Westlake Hospital places judges, state officials at center of unprecedented fight over attempt to close money-losing Melrose Park health care facility.
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The Illinois Supreme Court has reinstated, for now, a temporary restraining order on the closure of a Melrose Park hospital, after a state appeals panel had earlier ruled the restraining order had been granted wrongly, because the village of Melrose Park had no power under the law to request the action.
