Preston Hollow Outbids UI for Mercy Hospital Rights in American Healthcare

Mercy Hospital in Iowa City has been sold to Preston Hollow Community Capital, one of its principal creditors, in a bankruptcy auction, beating out the University of Iowa Hospitals and Clinics. American Healthcare Systems, a Los Angeles-based healthcare operator, will assume operations of the 194-bed hospital. The new owners are expected to take over hospital operations and finances in mid-November. The hospital will be organized as an Iowa not-for-profit organization with board members comprised of community leaders. The University of Iowa expressed disappointment but is heartened that the selected bidder has committed to keeping Mercy Iowa City as a hospital.