Having originally failed in its bid to buy Mercy Iowa City hospital, the University of Iowa Health system is now set to take over the bankrupt facility.
The news comes after days of dispute between the hospital and the original winning bidder, Preston Hollow Community Capital, over how future operating losses would be handled. In a rebidding process Oct. 27, Iowa City-based University of Iowa Health was deemed to have the highest or best bid, according to a news release shared with Becker's.
The next step will be a hearing, expected on or around Nov. 6, in bankruptcy court to approve the sale.
"The board of directors and management are confident that the sale of Mercy Iowa City to the University of Iowa is the best path forward for our patients, physicians, staff, and community," Tom Clancy, chair and CEO of Mercy Iowa City, said in a statement. "We are pleased to be working closely with a health system widely regarded as world-class, and one who understands and can meet the needs of Iowa City."