Vanessa Miller

The tumultuous and twisting Mercy Iowa City bankruptcy took another stunning turn Friday when the hospital revealed in a court filing that earlier in the day it re-opened the auction it already closed and changed its mind about who won – declaring the University of Iowa as having made the “higher or otherwise better” bid, instead of its largest bondholder Preston Hollow.

Two years ago, in summer of 2021, the NCAA suspended generations-old rules barring student-athletes from monetizing their “name, image, and likeness” – ushering in a new era allowing collegiate stars to capitalize on their fame.

Mercy Iowa City’s delay in closing its bankruptcy sale is hurting hospital operations by, among other things, scaring away patients and providers, eroding community confidence, and adding expense to an estate already depleted of resources – according to a Wednesday court filing asking a judge to force the issue.

After taking a “short” five-hour break during a bankruptcy auction in Chicago on Oct. 4 to discuss whether to raise their original $20 million offer for Mercy Iowa City’s assets in response to bondholder Preston Hollow’s $27 million counter bid, University of Iowa attorneys — at least initially — decided not to.

For years, in an attempt to meet growing student demand for expanded mental health services on campus, the University of Iowa has been embedding counselors into high-need spaces — like its dental college, Department of Athletics, and residence halls.

As attorneys wrangle over dwindling money available to pay lawyers, bankers, creditors and employees with the now-bankrupt Mercy Iowa City, the hospital’s pensioners are asking for a voice too.

Unlike Iowa’s public universities that reported larger student bodies this fall than last, many of Iowa’s private colleges saw enrollment drop this semester. And even those bucking the decline have smaller student bodies today than they did years ago before the pandemic struck.

After declaring its largest bondholder Preston Hollow winner of a bankruptcy auction for its assets last week — and issuing a news release to that effect — Mercy Iowa City now is refusing to move forward with the transaction and transition to new ownership, confirming Friday it has “reached an impasse.”

“I can still remember we talked about it a lot,” Jerre Stead, 80, told a crowd of hundreds Thursday on the University of Iowa campus, where in earned his bachelor’s degree in 1965. “Mary Joy said, ‘Someday, if we ever are fortunate enough, having had multiple children born here, we want to give something back for that. We want to make a difference at the university’.”

The University of Iowa this week officially exited the “silent“ portion of a new fundraising campaign, aiming to generate more than $3 billion, by announcing that it already is halfway to that goal — which, if achieved, would top its last capital campaign record by more than $1 billion.

The University of Iowa’s final bid to win the assets of Mercy Iowa City -- as part of its filing for Chapter 11 bankruptcy -- was $28 million, plus an additional commitment of at least $25 million in “immediate facility upgrades,” new UI Health Care Vice President for Medical Affairs Denise Jamieson said in a question-and-answer about the Mercy deal.

The evening meal at the Gables’ with the Hawkeye women’s wrestling team, including Coach Clarissa Chun, was among several uniquely-Iowa experiences the Ukrainians had during this fall’s 10-day visit as part of an international training tour – organized out of necessity, given the realities of war have made training in Ukraine increasingly difficult.

In late May, Gov. Kim Reynolds signed new legislation into law requiring Iowa’s Board of Regents to report specific financial-success metrics of its public university graduates – including their median annual income one, five, and 10 years post-graduation; median debt of those who took out student loans; and the percent of a graduate’s income spent paying off student-loan debt.

Hospital, marking 150 years serving Iowa City, awaits sale approval from bankruptcy judge.

In response to Tuesday evening’s surprise news the University of Iowa won’t be taking over its long-time community health care competitor Mercy Hospital after being outbid in a bankruptcy auction for its assets, UI President Barbara Wilson and UI Health Care Vice President Denise Jamieson expressed disappointment Wednesday morning.