Preston Hollow Emerges Victorious in Mercy Iowa City Auction
Bondholder Preston Hollow Community Capital has outbid the University of Iowa in an auction for the assets of Mercy Iowa City hospital, which is currently undergoing Chapter 11 bankruptcy proceedings. Instead of transitioning to UI ownership, Preston Hollow will collaborate with American Healthcare Systems to sustain Mercy Iowa City as a community hospital. The hospital will be organized as an Iowa not-for-profit organization with board members comprised of community leaders. Preston Hollow and American Healthcare Systems plan to make significant capital investments to stabilize the hospital's operations and restore community-care service lines. The final approval for the sale is expected in the near-term, allowing American Healthcare Systems to assume operational and financial responsibility by mid-November.
