Monday, November 6, 2023

Nov. 6, 2023

Court approves Mercy Iowa City sale to UI

To our employees, providers, and community: 

We are pleased to announce that the sale of Mercy Iowa City to University of Iowa was approved by the bankruptcy court this morning.

For 150 years, the UI and Mercy Iowa City have served the health care needs of patients in our community and beyond. From the beginning, both our institutions have focused on bringing accessible health care to Iowans, regardless of their ability to pay. It is that same spirit of steadfast commitment to service that will be vital as we join our two organizations.

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. Together, we will preserve and enhance access to quality health care and jobs for those throughout our region. Here are some immediate 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. 

We know that in times of change, our shared values, hopeful spirit, and desire for stability matter more than ever. Although many details are yet to be determined, our teams are dedicated to finding solutions through collaboration and providing regular updates.   

Thank you for caring about the future of health care and the people who deliver this care to our community. We appreciate your past and continuing support.  

Barbara J. Wilson
University of Iowa president 

Denise J. Jamieson
University of Iowa vice president for medical affairs and Tyrone D. Artz Dean, Carver College of Medicine 

Tom Clancy
Mercy Iowa City chair of the board, president and chief executive officer 

Mark Toney
Mercy Iowa City chief restructuring officer ­

Oct. 27, 2023

Mercy Iowa City selects UI bid

All University of Iowa employees,

On Oct. 11, we announced that we were unsuccessful in our attempt to acquire Mercy Iowa City as part of its bankruptcy process. It was not the outcome that we had hoped for, but our commitment to preserving access to health care and jobs locally has not waned.      

Recent events related to the ownership of Mercy Iowa City have unfolded quickly and the bondholder determined its previously selected bid was not financially viable. Mercy agreed with the bondholder’s conclusion and as a result declared the university’s bid as the winning offer.

We are very pleased that the university’s renewed bid has been selected by Mercy Iowa City. This long-time hospital has had a significant impact on our community, and we are gratified that we will be able to honor its 150-year history as an anchor of care in eastern Iowa. 

Although today’s selection of the university’s bid is a significant step forward, there is still plenty of work to be done. The next step is the approval of the selected bid by the bankruptcy court.   

We will continue to provide updates throughout the remainder of this process, and we look forward to providing stronger access to health care for Iowans.   


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 

Oct. 11, 2023

Update on Mercy Iowa City’s bankruptcy court action

All University of Iowa employees,

In August, we wrote to you to share our commitment to assist Mercy Iowa City as it entered bankruptcy. We have learned the university’s offer to potentially transition Mercy Iowa City to become part of University of Iowa Health Care was not selected as the preferred bid.

We are disappointed in this outcome because we believe there is value in having patient care delivered by an Iowa-based health system. Nevertheless, we are heartened that the selected bidder, the bond holder, has committed to keeping Mercy Iowa City as a hospital.

As a university, we participated in the bankruptcy auction because it is important to protect and enhance access to quality health care and jobs in our community. We are hopeful that this will be realized with Mercy Iowa City’s proposed new ownership structure, which will go to a bankruptcy court judge for approval.

As the bankruptcy process concludes, please know that our longstanding commitment to investing in Iowa and the health of its citizens will not waver.


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 

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. 


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