By 1938, "Painted Dreams" emerged from the courts and was purchased by CBS. The nature of the court settlement prohibited Phillips from any future involvement with the series. That year, when Phillips's mother died, she demanded that "Today's Children" be discontinued out of respect. CBS agreed and replaced it with her new series, "Woman in White", a serial which focused on the internal workings of a hospital; it was one of the first daytime serials to be set in a hospital. It was on "Woman in White" that Phillips first became involved with Agnes Nixon. William J. Bell also began his apprenticeship under Phillips during her radio days.