A business transaction that was supposed to help the owner of Crozer Health has been put on hold, putting additional strain on Delaware County’s hospitals and healthcare facilities, writes Jonathan Weil for The Wall Street Journal.

The deal was between hospital landlord Medical Properties Trust and one of its major tenants, Prospect Medical Holdings, owner of the local Crozer Health system.

MPT offered to receive equity in Prospect’s managed-care business–PHP Holdings, in lieu of Prospect’s $573 million loan debt and unpaid hospital rent.

A California state regulator has paused the transaction.

Prospect has been struggling to meet its financial obligations, leading to locally closed hospitals and service/staff cutbacks.

Monica Taylor, chair of the Delaware County Council, described the situation as “a maternity desert” on the eastern side of Delaware County.

“No maternity services are available for about a fifth of our population.”

County residents also endure longer ambulance rides and overcrowded emergency rooms.

If regulators squash the deal, both MPT and Prospect’s financial situations could become more precarious.

Drew Babin, an MPT spokesman, remains optimistic, saying information is being provided to regulators with an expectation the transaction will be completed.

For more detail on the Medical Properties Trust deal, read the full story in The Wall Street Journal.