South London Healthcare NHS Trust, the organisation responsible for services in hospitals across South East London, was dissolved at midnight on Monday.
Responsibility for managing the hospitals and services previously overseen by the Trust will now pass to other NHS organisations.
Queen Elizabeth Hospital in Woolwich, the Princess Royal University Hospital in Bromley and Queen Mary's Hospital in Sidcup are just three of the hospitals now under new management following the announcement.
Campaigners are urging the government to reject a report that says Lewisham Hospital should sacrifice services, for the sake of a debt-ridden health care trust. The plan calls for it to lose its maternity and A-and-E units.
Members of the Lewisham Healthcare NHS Trust have heavily criticised plans to dissolve a debt-ridden NHS Trust which was on the brink of bankruptcy.
John O'Donohue, consultant physician at Lewisham Healthcare NHS Trust described the devastating effect it could have on other financially stable trusts nearby.
A struggling NHStrust which was on the brink of bankruptcy should be dissolved, an officialconsultation has concluded.
South London Healthcare NHS Trust, which runs three hospitals in London, was the first ever to be placed in administration after it started losing around £1.3 million a week.
Special administrator Matthew Kershaw said the trust should now be broken up, with other organisations taking over the management and delivery of its services.
Health Secretary Andrew Lansley said that past efforts to tackle the deficit at the South London Healthcare Trust had not been successful, and that turning its fortunes around would be a "big challenge".
It is the first NHS trust in the country to be put under the control of a special administrator.
An NHS Trust which is losing a million pounds a week has become the first in the country to be put under the control of a special administrator.
South London Healthcare NHS Trust runs Queen Mary's in Sidcup, the Queen Elizabeth in Woolwich and the Princess Royal University Hospital in Bromley.
The government has appointed Matthew Kershaw, a former NHS chief executive, to get the trust back on track following criticism of standards and a defecit of more than 150 million pounds.