Although Mercy Hospital in Iowa City has signed a letter of intent to sell most of its assets to the University of Iowa for $20 million, a review of property assessment records show the 150-year-old community hospital’s 19 properties — all of which are intended for the UI — are valued at more than $137.3 million.
The 14 properties in Iowa City — including its $112.9 million main hospital campus on Market Street and a $14.1 million property at 540 E. Jefferson St. — total $135.5 million. Mercy also owns property it uses for clinics in Kalona, Tipton, Williamsburg and West Liberty valued at a combined $1.8 million, The Gazette reports.
The community hospital — which filed for Chapter 11 bankruptcy protection this month following years of financial woes and an accusation of default from its largest bondholder — also leases medical office space in Coralville, Solon and West Branch, which it plans to transfer to the UI. Read more.
