University of Iowa Hospitals and Clinics has submitted an offer to purchase the struggling Mercy Iowa City Hospital, CBS affiliate KGAN reported Aug. 16.
University of Iowa has put in an offer of $20 million for the hospital, which is considered a "below market" offer, according to court documents. Meanwhile, a previous offer from another bidder to buy the hospital for more than $600 million was rejected in 2021.
According to court filings, Mercy Iowa City could turn into a behavioral health facility if the deal goes through, the report said.
"The proposed sale would spell the end of Mercy as an independent full-service acute care hospital," the filings read. "Upon information and belief, the University of Iowa intends to reduce Mercy’s existing acute care service lines and convert Mercy into largely a behavioral health hospital."
"Mercy Iowa City and UI Health Care’s proposed affiliation is still subject to approval by the bankruptcy court, so it is too early to say if any health care services offered at Mercy Iowa City will change," UIHC said in a statement to KGAN. "Both organizations desire increased, seamless access to health care. We will have more information in the coming months as the court process continues."
Mercy has filed for bankruptcy and a judge has given the hospital a Sept. 19 deadline for the sale.