Hunter
05/07/25
The Mercy Hospital Liquidation Trust Oversight Committee is asking MercyOne Iowa City to produce documents related to their financial downfall and eventual bankruptcy sale to University of Iowa Health Care.
The Press-Citizen reports MercyOne has a Monday deadline to produce the documents per a court order.
The Oversight Committee claims MercyOne’s mismanagement led to the financial instability that eventually led to the main property in downtown Iowa City and adjacent clinics being sold at auction for a fraction of what they were offered when the University of Iowa tried to purchase them previously.
Mercy Iowa City entered into a partnership with MercyOne in 2016 after the downtown location’s chief executive stepped down. The management and affiliation agreement was intended to stabilize management, implement a new electronic medical records system, and improve the hospital’s finances.
Mercy Iowa City paid MercyOne over $9 million during their six year partnership. During that time, the hospital reportedly lost over $100 million.
The Press-Citizen also reports federal bankruptcy judge Thad Collins granted the records requests in late March, ordering MercyOne to produce records on a “rolling basis” and to complete “all relevant document submissions” by May 12. A hearing is scheduled for this Friday.