Hunter
12/05/22
Mercy Iowa City has seen their financial standing dwindling in the past fiscal year.
The Gazette reports that the hospital shows losses across the board. Cash and cash equivalents dropped from $22.1 million in fiscal 2021 to $5.8 million in fiscal 2022. Hospital revenue had a $19.4 million operating deficit, with non-operating losses hitting a $40.5 million deficit.
Mercy has been dealing with financial issues in the past, and over the last year has been searching for a new managing partner while they try to recover from pandemic-incurred losses. The Gazette says four hospital systems responded to Mercy’s request for new partnership, including University of Iowa Health Care. Mercy ultimately rejected all offers and decided to stay with MercyOne.
When asked for comment, Mercy officials declined to elaborate on an independent auditor’s findings that it’s not in compliance with previously-agreed to financial covenants.