Hunter
08/07/23
The University of Iowa has signed a letter of intent to acquire the operating facilities and key assets of financially troubled Mercy Iowa City.
A release from Mercy says they’ve filed a voluntary bankruptcy petition for reorganization, with the goal of maintaining its services to the community with University of Iowa Health Care as its new owner/operator.
UIHC reportedly offered to purchase the hospital last year but the deal fell through and Mercy remained in partnership with MercyOne of Des Moines.
Mercy’s statement Monday said their bondholders, Preston Hollow Community Capitol and Computershare Trust Company, and their demand for a court-ordered receiver played a large part in their decision to file for bankruptcy.
The hospital and its clinics remain open. CEO Tom Clancy thanked UIHC in a statement for finalizing an agreement that will allow Mercy to have a more sustainable future. The agreement still needs to be approved.