KCCI. EIGHT NEWS AT SIX. THE UNIVERSITY OF IOWA SAYS ITS BID TO BUY MERCY, IOWA CITY HAS BEEN APPROVED. THE BID WAS SELECTED AFTER THE FIRST BID WAS DETERMINED TO NOT BE FINANCIALLY VIABLE. THE BANKRUPTCY COURT APPROVED THE U. OF I’S BID THIS MORNING. THE UNIVERSITY SAYS THERE WILL BE NO IMMEDIATE CHANGES FOR PATIENTS, EMPLOYEES OR PHYSICIANS. IF YOU DO RECEIVE CARE WITH MERCY, IOWA CITY, THAT WILL CONTINUE AS USUAL. UHC SAYS THE TWO WILL OFFICI
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University of Iowa Health Care officially acquires Mercy Iowa City
Updated: 6:23 PM CST Nov 6, 2023
The purchase of Mercy Iowa City by the University of Iowa was approved by a bankruptcy court Monday morning, KCRG reports.Mercy Iowa City initially announced its creditor, Preston Hollow Community Capital, had placed a winning bid at auction.However, after a dispute, it reopened bidding and selected the University of Iowa Hospitals and Clinics.Preston Hollow disputed that UIHC had that winning bid, but a bankruptcy judge approved the sale.“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,” the University of Iowa said in a statement following the judge’s decision. “Together, we will preserve and enhance access to quality health care and jobs for those throughout our region.”In a letter, leaders with the University of Iowa announced the following first steps:“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 purchase of Mercy Iowa City by the University of Iowa was approved by a bankruptcy court Monday morning, KCRG reports.
Mercy Iowa City initially announced its creditor, Preston Hollow Community Capital, had placed a winning bid at auction.
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However, after a dispute, it reopened bidding and selected the University of Iowa Hospitals and Clinics.
Preston Hollow disputed that UIHC had that winning bid, but a bankruptcy judge approved the sale.
“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,” the University of Iowa said in a statement following the judge’s decision. “Together, we will preserve and enhance access to quality health care and jobs for those throughout our region.”
In a letter, leaders with the University of Iowa announced the following first steps:
- “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.”