The University of Iowa has won the bid to take over the Mercy Iowa City hospital in a second chance twist. Equity firm Preston Hollow Community Capital had won the initial bid for the Iowa City hospital earlier this month — but their financing was determined unviable.
The UI’s original bid of $28 million was chosen as the best option after the Preston Hollow bid was turned down. The purchase must be approved in bankruptcy court in a sale hearing on November 6th before the UI can take over. The UI issued a statement saying they plan to conduct an in-depth analysis of the healthcare needs of the Iowa City community before making any modifications to Mercy’s hospital or services.
The University says it intends to offer employment to substantially all Mercy employees.