The company said its facilities will remain open as it works to sell off its hospitals.
That includes Crozer-Chester Medical Center in Chester and Taylor Hospital in Ridley Park.
State and county leaders said today they are doing everything in their power to make sure residents have access to quality healthcare.
"This is not just a financial matter - it's also a public health crisis. Prospect Medical Holdings has systematically stripped resources from its facilities, prioritized profits over patient care, and left our communities to shoulder the fallout," said Pa. State Sen. Tim Kearney (D).
The Pennsylvania Attorney General filed a lawsuit against Prospect in October, claiming mismanagement and neglect.