Mercy Iowa City Hospital in Iowa City, Iowa
(Iowa City, IA) -- The Mercy Iowa City bankruptcy process just got a lot more complicated. According to court filings, investor Preston Hollow Community Capital is asking for an examiner to investigate the hospital's sudden decline, stating they were not consulted before the hospital in their words, "threw in the towel." Preston Hollow says $37.9 million is still owed in bonds issued by Mercy Iowa City in 2018. They also call the proposed purchase of the hospital by the University of Iowa a "below market offer" and a "fire sale." The Board of Regents approved a $20 million purchase of Mercy Iowa City by the University of Iowa last week.
In a statement provided to The Cedar Rapids Gazette on Tuesday, Mercy officials said they dispute the investment firm's assertions in its request for an examiner, saying they will address the issues in court in "due course."
Photo Credit: KGAN