Hunter
10/01/23
Mercy Iowa City claims that staffing agencies that supply the hospital with temp workers have begun pulling those workers before their contracts expire, prompting legal action.
Kim Volk is vice president of patient care services and chief nursing officer for Mercy. She said in a court declaration this past week that the hospital has been forced to turn away patients due to a lack of staff. That lack of staff has also put pressure on the remaining patient care team.
Mercy has asked a judge to order those agencies to return their staff to finish the remainder of their contract with the community hospital. Mercy also seeks punitive damages and attorney fees.
Mercy has been using temp workers since at least September 2021. The Cedar Rapids Gazette reports the hospital entered into a “vendor management agreement” with Medefis Inc. to connect Mercy with staffing agencies who would supply workers so the hospital could operate around the clock. In exchange, Mercy was to pay the agencies within 30 days and with a 1-percent interest rate for amounts overdue, according to court documents.
In court, Mercy argued that the agencies are in violation of bankruptcy law that bars anyone in a contract with a debtor from terminating or changing an agreement after the debtor files for bankruptcy.
A judge agreed to set a “expedited hearing” on the matter for Tuesday. Bids from other companies competing for Mercy’s assets with the University of Iowa’s “stalking horse bid” of $20 million are due Monday.