(WJET/WFXP) — Prospect Medical Holdings, a "comprehensive network" of hospitals and affiliates, filed for Chapter 11 bankruptcy late Saturday, along with its approximately 60 subsidiaries. According to the company, it will realign its organizational focus outside of California, Pending court approval, it plans to sell the Roger Williams Medical Center and Our Lady of Fatima Medical Center in Rhode Island. The company also continues conversations with key stakeholders outside of Rhode Island and with the Commonwealth of Pennsylvania to sell the Crozer-Chester Medical Center. The Los Angeles-based company reported anywhere from $1 billion to 10 billion in debt and assets with over 100,000 creditors. The company cites "a recent number of challenges," though does not go into detail about those challenges in the press release. More details about the challenges and headwinds are generally provided in subsequent court filings (known as First Day Motions). In October, the Pennsylvania Attorney General filed a lawsuit against the company for alleged mismanagement and neglect of the Pennsylvania-based health system. According to the lawsuit, Prospect Medical Holdings, Inc. allegedly mismanaged and neglected the Delaware County-based Crozer Health System which has resulted in closures of facilities and shattered a network of care for hundreds of thousands of Pennsylvanians. The lawsuit alleges Prospect Medical has broken an Asset Purchase Agreement, approved by a court in 2016, by cutting services and closing facilities, while diverting funds to private shareholders and investors, rather than supporting the healthcare network. During the Chapter 11 process, the company said that all of its hospitals will remain open and care will be uninterrupted. It will continue to engage to finalize necessary funding during the process. It is seeking an "expedited timeline" for the sale and restructuring process, but no estimate is given. Von Crockett, Prospect Holdings’ Chief Executive Officer, said: “Today’s actions represent an important step forward in our longstanding commitment to best serve the interests of our patients, physicians, employees, and communities. Divesting our operations outside of California will ensure that they receive necessary financial support so that the communities that rely on those facilities will maintain continued access to highly coordinated, personalized, and critical healthcare services long into the future.” In November, the company agreed to a $745 million deal with Astrana Health to sell certain assets, which is expected to be finalized in mid-2025 and, thus, was excluded from the Chapter 11 filing. Prospect Medical Holdings, Inc., founded in 1998, currently owns 16 hospitals across four states including Southern California, Connecticut, Pennsylvania, and Rhode Island. In addition to the hospitals, the company also operates 166 outpatient clinics and centers.