Negotiations between bankrupt hospital owner Prospect Medical Holdings and the Pennsylvania attorney general over Crozer Health's transfer to a new nonprofit "hit a snag" over the weekend, Prospect's lawyer told a bankruptcy judge Monday. Prospect will be back in federal court Thursday to either ask for a 30-day extension of bankruptcy funding for Crozer or with a plan for shutting down the Delaware County hospitals, Prospect's lawyer, Thomas R. Califano, of Sidley Austin, told the judge. "I really hope it's not the agreed shutdown," he said. Califano said Prospect and the Pennsylvania attorney general's office worked over the weekend. He did not say what the snag was. On Friday, Prospect put out a news release saying it had reached a deal to transfer Crozer Health to a "not-for-profit consortium of health-care operators" with state support, even though no agreement had been reached.
