Aug. 7, 2023

Mercy Iowa City: What the bankruptcy means for our community and UI Health Care

All University of Iowa employees,

Like many hospitals nationwide, Mercy Iowa City has experienced significant financial challenges. Today, we share an update as to how we are supporting Mercy Iowa City following its filing this morning of a voluntarily proceeding through a structured bankruptcy.  

We have always maintained great respect for Mercy Iowa City, knowing the vital role it has played in our community since 1873. As members of the same community, many of us know and care about people who work at Mercy Iowa City. We want you to know that leaders from the University of Iowa, UI Health Care, and Mercy Iowa City are working together to avoid significant disruption. Although many decisions will be in the hands of the bankruptcy court, we share a goal to preserve and enhance local and regional access to quality health care and jobs. 

Included in Mercy Iowa City’s bankruptcy court filing is a reference to a letter of intent between Mercy Iowa City and the State of Iowa that outlines the potential to transition Mercy Iowa City to become part of UI Health Care. If the Board of Regents, State of Iowa, and the bankruptcy court approve this proposed affiliation between Mercy Iowa City and UI Health Care, we will begin planning to bring our two organizations together. 

In the meantime, Mercy Iowa City will continue to see patients as its hospital proceeds through bankruptcy and we will prepare,to the extent permissible, for a potential future where our entities join as one to continue to serve the health care needs of Iowans.

We are only at the beginning of this process and recognize you will have many questions. We will provide you with regular updates and answers as we confirm details. This is a significant time for our region and our people as we work to preserve and enhance access to quality health care and jobs. Thank you for all you do to continue to provide quality care for Iowans. 

Sincerely,

Barbara J. Wilson, president, University of Iowa
Denise J. Jamieson, vice president for medical affairs and dean of Roy J. and Lucille A. Carver College of Medicine, University of Iowa