Letters ask Mercy patients to ‘continue to schedule and go to your appointments’

IOWA CITY — A letter to Mercy Iowa City patients went out over the weekend about its transition to University of Iowa Health Care ownership asking them to “continue to schedule and go to your appointments as usual.”

“You can expect the same high-quality health care you currently receive,” according to the letter dated Jan. 5 and signed by UIHC Vice President for Medical Affairs Denise Jamieson and Mercy Iowa City President and CEO Tom Clancy.

“Our intention is to make this transition as smooth as possible for you.”

The letter comes just over three weeks before the university’s $28 million purchase of Mercy Iowa City is expected to finalize — merging the 150-year-old community hospital with its neighbor and former competitor, who in 2021 made a behind-the-scenes offer to buy Mercy for a 10-year commitment of $605 million.

That deal never materialized and Mercy’s finances continued to decline until its largest bondholder over the summer outed the hospital’s budget woes in a demand for court intervention — accelerating and exacerbating the situation and compelling Mercy to file for Chapter 11 bankruptcy Aug. 7.

Although the university didn’t initially win a bankruptcy auction for Mercy’s assets, its $28 million bid ended up on top after UIHC also agreed to cover Mercy’s mounting operating losses after Dec. 1 without pulling any money from the Mercy Foundation.

The university additionally committed to spend $25 million in infrastructure improvements at Mercy over five years — although details haven’t been made public.

In response to questions about what services and locations will remain at Mercy, UIHC officials have said, “The focus right now is completion of the transaction.”

“We expect to maintain the current services offered at Mercy Iowa City for the time being and as community needs are assessed,” according to a UIHC FAQ on the transition. “This is an opportunity to define a new course to meet our shared mission of caring for all.

“We don’t know what that future course will look like right now. What we do know is that we will spend time with you and patients to understand what services will best serve health care needs in Eastern Iowa.”

The university is in the midst of offering jobs and onboarding Mercy staff and physicians into the UIHC system — a complicated process given the vast differences between a private community hospital and a large academic medical center.

To the patient question of whether “my provider will be staying with Mercy,” officials said, “All Mercy Iowa City physicians and employees have been welcomed to transition to UI Health Care to maintain continuity of care for patients.”

Some providers are being offered higher compensation, others are being offered lower, and many are being offered the same, university officials have told The Gazette.

“If a provider chooses to leave, their patients will be notified as soon as possible via mail, including details on how to find a new provider.”

Although current patient numbers haven’t been made public, Mercy’s Chief Restructuring Officer Mark Toney in August reported Mercy’s emergency room averages more than 30,000 visits a year and in the 2023 budget year had about 5,000 inpatient admissions, 1,550 observation admissions, and 800 newborn deliveries.

Mercy — which at the time had a workforce of 1,122 employees and more than 90 physicians — reported a surgical volume of about 7,160 for the year.

Its 18 primary and specialty clinics reported more than 140,000 visits.

In the patient letter sent to Mercy patients over the weekend, hospital executives said scheduling and electronic medical records will be accessible the same way they have been.

“If anything changes, we will notify you,” according to the letter. “We are excited that UI Health Care, an organization that shares a commitment to serving this community, will help continue the spirit and legacy of Mercy Iowa City in this new chapter.”

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com