University of Iowa plans to acquire Mercy Iowa City, a 234-bed, financially troubled hospital that is resisting an investment firm’s takeover, according to Becker’s.
Mercy Iowa City has filed for Chapter 11 bankruptcy in the Northern District of Iowa. Included in that filing is a reference to a letter of intent between Mercy Iowa City and the State of Iowa that outlines the plan to transition Mercy Iowa City to become part of UI Health Care. The affiliation requires approval from the university board of regents, state of Iowa, and the bankruptcy court.
Mercy Iowa City has seen tumult in recent months. In late July, its biggest investor — Preston Hollow Community Capital — filed a petition for receivership of the hospital. The Texas-based investment firm argued that the hospital is “in financial freefall” and sought to take over operations. Read more.
