Bankrupt Health System Prospect Medical Holdings Inc. obtained the judicial approval of the manual operations of its Pennsylvania hospitals to a receiver backed by the State, a last minute agreement that avoids the potential closures of critical health centers.

The agreement approved on Thursday by Judge Stacey Jernigan transfers the operation of perspective hospitals to the advisory firm FTI Consulting Inc., which has been used by the Attorney General of Pennsylvania Dave Sunday as a private administrator to supervise hospitals in the state . The perspective faces “serious liquidity” problems and the agreement is a temporary measure that will maintain open hospitals while looking for prospects to new owners, Jernigan said.

“We have to keep these facilities open, somehow,” said the judge.

The agreement with the state authorities joined after a proposed sale of the Pennsylvania hospitals was stopped to a non -profit organization. FTI will also supervise $ 20 million in funds to support hospitals that are scheduled to arrive in the coming weeks, said Prospectic Lawyer Thomas Calipano during the judicial hearing on Thursday.

The Pennsylvania authorities sued Prospect last year and their private capital investor Leonard Green and Partners. The prospecting of demand claims distributed $ 457 million in dividends to investors through a loan of $ 1.12 billion.

The complaint also criticized the sale of Prospect properties in California, Connecticut and Pennsylvania to Landlord Medical Properties Trust Inc., which rented the facilities back to the company. The leases committed prospects with excessive liabilities, claimed the demand.

Prospect presented himself to chapter 11 in January, becoming at least the third health system to seek judicial protection in the last two years. The former tenant of Medical Trust’s medical properties, Steward Health, appeared to Chapter 11 last year and also had to reach a series of rescue agreements to prevent their hospitals from closing.

The property of Leonard Green and Partners de Prospect Medical has been criticized by members of Congress. A bipartisan report of the Senate published earlier this month said that the private capital firm “exerted a substantial influence” on Prospect’s financial decisions and that, although it was the owner of the hospital operator, he raised $ 424 million of the $ 645 millions that the company paid in dividends and preferred shares. Reditions

The case is Prospect Medical Holdings, Inc., 25-80002, in the northern district of Texas of the United States bankruptcy court.

Copyright 2025 Bloomberg.