University Of Iowa To Acquire Bankrupt Mercy Iowa City Hospital For $20 Million

Mercy Iowa City Hospital signed a letter of intent with the University of Iowa in which the university will acquire most of the hospital’s operating facilities and key assets for $20 million. To implement the plan, Mercy City Iowa filed for Chapter 11 bankruptcy, which will allow the hospital to reorganize its debt.

The hospital is seeking approval of a sale process with the university. The goal is to transition the hospital and its employees to a new owner and operator that intends to preserve the services provided by the hospital to the community.

In connection with the expedited . . .