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A system wide prognostic process is required to fulfill the needs of expensive and high availability industrial systems. The recent advances in model-based design technology have facilitated the integration of model-based diagnosis and prognosis of systems, leading to condition-based maintenance. In this paper an integrated prognostic process based on data collected from model-based simulations under nominal and degraded conditions is described. Interacting Multiple Model (IMM) is used to track the hidden damage. Remaining life prediction is performed by mixing mode-based life predictions via time-averaged mode probabilities. The prognostic process is demonstrated on a suspension system.