Beauty medical centers that treat acne and other skin conditions are now closed over the $400m in debt, the owner of the hospital told CNN.
The Medical Beauty Institute at San Francisco General Hospital and the Beauty Medical Center at New York Presbyterian Hospital in New York City are closing down, the company said.
The company said that it is seeking an alternative buyer for the facilities.
The $3.2 billion hospital was built in 1966 and is now the largest beauty facility in the country, according to the website of the New York State Department of Health.
It was the first dermatology hospital in the world and the first in the United States.
It is the largest cosmetic medical facility in New Jersey.