The Board of Regents unanimously approved Tuesday a University of Iowa request to buy most of Iowa City-based Mercy Hospital’s assets for $20 million — without asking questions about the deal’s finances, including how the price was determined, where the money will come from and what will happen with the $63 million Mercy owes on publicly-issued bonds.
“I’m 100 percent behind this,” Regent Nancy Dunkel said of the deal — disclosed Monday, when Mercy Iowa City filed for Chapter 11 reorganization in U.S. Bankruptcy Court and announced the UI had signed a letter of intent to acquire “substantially all” its operating facilities and assets.
Regents spokesman Brock Ascher told The Gazette: “The bankruptcy court will determine what happens with Mercy’s debt, but the state will not be responsible.” Read more.
