Mercy Iowa City timeline

Sept. 27, 1873 — Mercy Iowa City admits its first patient — a man with tuberculosis — after four Sisters of Mercy traveled by train from Davenport to establish a hospital in Iowa City.

1873-1885 — The University of Iowa medical department opens a small hospital in conjunction with the Sisters of Mercy Catholic order.

1885 — The UI separates from Mercy “due to different priorities” and opens a 65-bed hospital in 1898.

June 1, 2017 — More than a century later, Mercy Iowa City instigates a management partnership with MercyOne of Des Moines.

June 2021 — Mercy Iowa City says it wants out of the partnership and to align with a larger organization.

Summer 2021 — The UI offers a $605 million commitment over 10 years to buy Mercy Iowa City, although that deal never materializes.

Aug. 7 — Mercy Iowa City, following steep financial decline and pressure from bondholders, files for Chapter 11 bankruptcy protection. As part of that deal, the university agrees to offer $20 million to buy substantially all its assets.

Oct. 2 — The bankruptcy sale goes to auction when another bidder surfaces.

Oct. 10 — Mercy Iowa City announces its largest bondholder, Preston Hollow Community Capital, has won the auction, with intentions to continue operating the hospital with the help of American Healthcare Systems.

Source: University of Iowa, Mercy Iowa City, U.S. Bankruptcy Court