University Of Iowa Paid $40 Million For Mercy Iowa City

(Iowa City, IA) -- We now know the cost for University of Iowa to purchase Mercy Iowa City.

U-of-I bid 28-million dollars at Mercy's bankruptcy auction, and spent another 11.9 million to cover the hospital’s operating losses, and unpaid contract obligations. That's a total cost of 40-million dollars to buy the 150-year-old community hospital and roll it into the UI Healthcare system.

Mercy Iowa City hospital became UI HealthCare Medical Center Downtown on February 1st.

Photo Credit: Iowa's News Now