Lang
8/16/23
A major investor in Mercy Iowa City is calling for a comprehensive review into the hospital’s finances after the Mercy Board of Directors approved a sale to the University of Iowa.
That sale was approved by the Iowa Board of Regents last week. Now Mercy bondholders Preston Hollow Community Capital say they want a comprehensive review to answer several questions about the mistakes that led the hospital’s financial woes. The group also claims it was not consulted about Mercy filing for bankruptcy.
Preston Hollow argues that if the UI takes over Mercy, it would cease being a full-service hospital, instead shifting its focus to behavioral health.
The Mercy sale is not final, as another entity could still outbid the UI. The expected sale price is about $20 million…a number Preston Hollow feels is too low.
The current sale proposal with the UI would allow the top doctors to keep their positions, while other staff members would have to reapply for their positions through the university.