Court Says Center City Can Spend $6 Million for Insurance

Center City Healthcare, LLC, a bankrupt hospital operator in Philadelphia, got tentative court approval to spend $6.2 million for liability insurance coverage, despite objections of unsecured creditors.

Obtaining the so-called “tail” insurance, which extends medical malpractice coverage to claims brought after a policy has expired, is “critically important” for health care providers in the case, Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware said Tuesday at a hearing in Wilmington, Del.

The ruling from the bench, which is still contingent on Gross signing a final order, would resolve Center City’s disputes with a group of ...