Hunter
08/10/23
A US Bankruptcy judge has expedited the sale of Mercy Iowa City, setting a bid deadline of September 19th.
The Gazette reports Mercy’s chief restructuring officer Mark Toney argued in court Wednesday that time was of the essence, as the hospital becomes an increasingly fragile organization forced into bankruptcy because of a significant drop in value.
Mercy filed for Chapter 11 bankruptcy this week, with the University of Iowa announcing its intention to purchase the assets for $20 million. The assets must go out for bid, with the UI as the stalking horse bidder.
According to the bankruptcy proceedings, another outside entity could try to outbid the university, but they would have to come in with a bid of at least $21.3 million , have proof of financial backing, have health care experience, and have a plan for Mercy’s assets.
If another bidder or bidders emerge, an auction will be held on September 22nd.
Mercy Iowa City is the fifth largest employer in Iowa City, with over 1100 employees and over 90 physicians working across 18 primary and specialty clinics in the area.