Private Hospital Owner Prospect Medical Files for Bankruptcy

  • Firm seeks to sell operations outside California, it says
  • Hospital landlord MPT sought control of some assets last year

Prospect Medical Holdings Inc. manages networks of more than 11,000 doctors and operates more 16 hospitals.

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Prospect Medical Holdings Inc., once an active buyer of cash-strapped hospitals, filed for bankruptcy after struggling with debt piles and soaring costs.

The company listed $1 billion to $10 billion in assets and liabilities each, along with more than 100,000 creditors, in a bankruptcy petition filed in Texas on Saturday.