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IOWA CITY, Iowa -- A bankruptcy court is approving the sale of an Iowa City hospital to the University of Iowa.
The university will spend $28 million for Mercy Iowa City.
The school says it's looking forward to starting the process of bringing Mercy Iowa City into the UI Health Care system.
The university says some immediate first steps include:
- The university has committed that all Mercy Iowa City employees in good standing will be offered employment with UI Health Care.
- Community providers not employed by UI Health Care may continue to practice at the facility under an open medical staff model.
- We are beginning to plan for our organizations to officially join as one in early 2024. In the meantime, there will be no immediate changes for patients, employees, or physicians.
- If you receive your care with Mercy Iowa City, please continue to schedule and go to your appointments as usual.
The court recently reopened auction for Mercy Iowa City's assets, after initially agreeing to sell them to Preston Hollow Community Capital in Dallas, TX.
The company invested $41 million into the hospital in 2018 and says it has an outstanding balance of $62 million.