Officials at Brooklyn's Long Island College Hospital say the facility will remain open while negotiations continue over its future.
LICH was set to close at 7 Thursday morning.
The news comes as a judge is expected to rule today on a motion that would disqualify proposals to operate the facility that didn't reach the minimum qualifications of a full service hospital.
Residents have mixed feelings on the hospital's future.
"Some people say the company is trying to close it--has been undermining the business and that's why it's closing. But I've also heard convincing things that their business plan cannot support a full service hospital in the neighborhood," said one person in the area.
"There's nothing to say that a hospital that's been in existence has to stay in existence forever. None of us get that privilege," another person said.
SUNY Downstate is said to be close to reaching a deal with Peebles Corporation after talks with the first top bidder, Brooklyn Health Partners, fell through, but the bid does not include plans for a full-service hospital.