Prognostics, which deals with predicting remaining useful life of components, subsystems, and systems, is a key tech- nology for systems health management that leads to improved safety and reliability with reduced costs. The prognostics problem is often approached from a component-centric view. However, in most cases, it is not specifically component life- times that are important, but, rather, the lifetimes of the sys- tems in which these components reside. The system-level prognostics problem can be quite difficult due to the increased scale and scope of the prognostics problem and the rela- tive lack of scalability and efficiency of typical prognostics approaches. In order to address these issues, we develop a distributed solution to the system-level prognostics prob- lem, based on the concept of structural model decomposi- tion. The system model is decomposed into independent submodels. Independent local prognostics subproblems are then formed based on these local submodels, resulting in a scalable, efficient, and flexible distributed approach to the system-level prognostics problem. We provide a formulation of the system-level prognostics problem and demonstrate the approach on a four-wheeled rover simulation testbed. The re- sults show that the system-level prognostics problem can be accurately and efficiently solved in a distributed fashion.