Prospect Medical Holdings has filed for bankruptcy and plans to restructure, maintaining patient services during the process.

Prospect Medical Holdings filed for bankruptcy protections late Saturday, a move the financially strapped health system said will streamline divestitures outside of its home state of California.

The casual restaurant sector faced financial distress in 2024 with several major chains having no choice but to file for Chapter 11 bankruptcy protection to save their businesses from closing permanently.

Prospect Medical Holdings, which owns Manchester Memorial Hospital, Rockville General Hospital and Waterbury Hospital, has filed for Chapter 11 bankruptcy.

Prospect Medical Group, which owns 16 U.S. hospitals, filed for bankruptcy protection in Texas on Saturday, seeking to sell East Coast hospitals and re-focus on its California operations.

A Los Angeles-based company that owns more than a dozen hospitals in four states filed for bankruptcy late Saturday night, the second major system acquired by private equity to collapse in less than a year.

A Chapter 11 bankruptcy does not mean that these hospitals are going out of business. However, it means that the organizations are going to restructure their finances and implemen