Iowa City, IA- A Texas firm that invested in Mercy Hospital in Iowa City says the facility is on the verge of insolvency.
Radio Iowa reports that Preston Hollow Community Capital, headquartered in Dallas, Texas, says it is seeking a court-appointed receivership to restructure the debt of Mercy Hospital in Iowa City.
The firm’s statement says Mercy Iowa City’s board of directors has failed to shift its approach to deal with unsustainable financial issues and avoid closure of the facility.
Two years ago, Mercy Iowa City rejected the University of Iowa’s more than 600 million dollar offer to buy Mercy Iowa City and turn it into a community division of the University of Iowa Hospitals and Clinics.
A spokesperson for the hospital was not available for comment.
