All News

Court approves Mercy Iowa City sale to University of Iowa

Nov 6, 2023

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 University of Iowa 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 the 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