Bankrupt Mercy Iowa City hospital said it has reached an impasse to resolve a disagreement with the successful bidder for the 234-bed facility.
Bondholder Preston Hollow Community Capital won out in the auction, outbidding stalking horse bidder the University of Iowa.
But disagreements over how operating losses will be funded from Dec. 1 are preventing a final sale of the hospital, Mercy Iowa City said in a statement provided to Becker's.
Court documents on the issue filed by Preston Hollow include "inaccurate and inappropriate statements," Mercy said.
Preston Hollow bid $29 million for the hospital, according to an Oct. 19 The Gazette report, outbidding UI Health by just $1 million.
"Mercy Iowa City continues to negotiate in good faith with Preston Hollow Community Capital regarding their bid to purchase Mercy," the hospital added.