Bankruptcy court OKs sale of Mercy Iowa City hospital

IOWA CITY, Iowa (KWQC) - A bankruptcy court approved the sale of Mercy Iowa City to University of Iowa on Monday morning.

On Oct. 27 the university had announced that its renewed bid was selected by Mercy Iowa City by the court. That was a couple of weeks after the first selection fell through.

The process of combining the organizations will begin in early 2024, according to a news release from the university.

“At a time when many hospitals nationwide are experiencing significant financial challenges, we are heartened to begin the planning to bring Mercy Iowa City into UI Health Care,” according to the statement from the university.

The UI Health Care said there will be no immediate changes for patients, employees, or physicians.

And 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 have privilege to practice there under an “open medical staff model.”

According to Mercy Iowa City website, it began in 1873, when “four Sisters of Mercy who traveled from Davenport, Iowa, by train, carrying as many furnishings and medical supplies as they could manage. They came at the invitation of Dr. W.F. Peck, dean of the young Medical School of the State University of Iowa, who wanted the Sisters to establish a hospital in Iowa City. Such a hospital would provide a facility where medical students could gain clinical experience and the Sisters could pursue their mission of caring for the poor and sick.”