A Texas-based investment company has requested a court order to take over management of Mercy Hospital in Iowa City to prevent closing the facility over its ongoing financial problems, the Des Moines Register reports.
Preston Hollow Community Capital filed a petition in Johnson County to place the 234-bed hospital under a court-appointed receivership, allowing the Dallas-based investment firm to take over operations and address the hospital’s financial instability. According to the court filings, the hospital is “in financial freefall.”
Company officials say Mercy Iowa City is suffering unsustainable operating losses, and its liquid assets have dropped by $40 million — more than 51% — in the past nine months. Read more.
