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Mercy Iowa City turned down University of Iowa Health Care $605 million offer to buy

by Thomas Dworetzky, Contributing Reporter | August 09, 2022
Business Affairs

He told The Gazette that talks continue with Mercy Iowa City.

“We viewed ourselves as a potential partner in finding a solution to the current challenges that Mercy Iowa City is facing,” he told the paper, adding that, “arriving at a structure for a relationship can be challenging. That said, I can confirm that we are in conversations, but can’t discuss specific details.”

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University of Iowa's health care system was in the news in late July when the Iowa Board of Regents approved a budget increase for its 469,000-square-foot facility under construction in North Liberty by $130.6 million, or 33% of the original $395 million price tag, to $525.6 million.

Inflation played a role in the decision.

"We all know what we hear on the news and what we all experience at the gas station and the grocery store, and the construction industry has challenges as well, with inflation not only in the United States, but worldwide," Kimberly Hunter, interim CEO of the University of Iowa Hospitals & Clinics, told the regents during a virtual meeting, according to the Des Moines Register.

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