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Investor pushes for Mercy Iowa City to be placed in court-appointed receivership after financial troubles

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Investor pushes for Mercy Iowa City to be placed in court-appointed receivership after financial troubles


IOWA CITY, Iowa (KCRG) – A financial investor in Mercy Iowa City announced on Monday its desire for the community hospital to be placed on a court-appointed receivership after the hospital received notice that it defaulted on its bond agreement.

In a message sent to hospital employees and staff on July 21st, the hospital stated that it received notice that its bondholder considers the hospital in default on its bond agreements. Mercy Iowa City disputes the claim, stating that they have made all of the payments on the bond as required.

Financial investor in the hospital, Preston Hollow Community Capital, responded to the report of the bond default on Monday. They request that Mercy Iowa City be placed in a court-appointed receivership in order to “stabilize itself” from unsustainable financial losses.

You can read their full statement below:

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“In 2018, Preston Hollow Community Capital was pleased to make a substantial investment in Mercy Iowa City in order to support the hospital’s mission of ensuring families in Johnson County and eastern Iowa have access to high-quality, affordable healthcare services. Unfortunately, since that time the Mercy Iowa City board of directors has made a series of decisions that have put that mission at risk, along with the Hospital’s ability to meet its financial obligations to their talented team of nurses, doctors, and more.

With the board having refused to shift its approach to address these issues and with the hospital now on the verge of insolvency, the choice remaining for Preston Hollow Community Capital is to request that Mercy Iowa City be placed in a court-appointed receivership in order to stem its unsustainable financial losses, stabilize its operations and avoid a closure of the facility.

We hope this step will provide a framework for a rehabilitation and recapitalization of Mercy Iowa City and ensure that its existing patients continue to receive the care they need and have multiple options where they can access health care services.”

This comes not long after the hospital’s credit rating was downgraded in March 2023, after having outstanding debt at the close of the 2022 budget year.

Mercy Iowa City is reportedly reviewing Preston Hollow’s statement but has not provided an updated response to KCRG-TV9 at this time.

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Photos: Iowa men’s basketball vs. Rider

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Photos: Iowa men’s basketball vs. Rider


The Iowa Hawkeyes faced the Rider Broncs on Tuesday night in a showdown at Carver-Hawkeye Arena. The Hawkeyes defeated the Broncs, 83-58.

Pryce Sandfort continued to prove himself and led Iowa in scoring with 22 points. Owen Freeman was close behind with 19 points after being absent from the last game played at Carver. Tariq Ingraham led the Rider team, scoring 14 points.

Iowa will play again on Friday, November 22, against Utah State.



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Iowa men’s basketball: Junior guard Josh Dix unavailable for Hawkeyes’ game vs. Rider

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Iowa men’s basketball: Junior guard Josh Dix unavailable for Hawkeyes’ game vs. Rider


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IOWA CITY — Iowa guard Josh Dix is out for the Hawkeyes’ matchup with Rider on Tuesday.

Dix injured his wrist during Iowa’s win over Washington State on Friday in Moline, Ill. He tried playing through it but was largely ineffective and finished the game with just two points.

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“Hopefully Josh’s injury will be taken care of relatively quickly,” Iowa coach Fran McCaffery said after the game. “We’ll have to see.”

The junior has started four games for the Hawkeyes this season, averaging 12.3 points and four assists per contest while shooting 44.4% from deep.

The Hawkeyes have already been hit with injuries fairly often this season. Seydou Traore missed the first two games. Owen Freeman was unavailable for the game against South Dakota due to illness. Freshman Chris Tadjo, who is also out Tuesday, has also missed time.

Iowa plays Utah State on Friday in Kansas City, Missouri, in what is expected to be the Hawkeyes’ biggest challenge to date this season. The Aggies will enter that matchup with a 4-0 overall record and haven’t scored less than 95 points each game this season.

Dix’s status for that matchup will be an important storyline to track.

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Follow Tyler Tachman on X @Tyler_T15, contact via email at ttachman@gannett.com





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Iowa State football: See which former Cyclones players stood out in Week 11 of NFL season

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Iowa State football: See which former Cyclones players stood out in Week 11 of NFL season


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Week 11 of the 2024 NFL season is in the books, and several former Iowa State players had huge hands in their teams’ performances.

The collection of ex-Cyclones in the NFL continues to grow, with several more added to rosters this season after having around a dozen consistently active last season. While the star-studded names like Brock Purdy, Breece Hall and David Montgomery continue to shine week after week, several others Iowa State fans will recognize are making significant impacts at the pro level too.

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With that, here are a few ex-Cyclones who stood out in Week 11 of the NFL season.

David Montgomery, Detroit Lions RB

Everyone on the Detroit Lions got a piece of the action in Sunday’s 52-6 win over the Jacksonville Jaguars. Montgomery was right in the middle of the dominance.

The former Iowa State running back finished with 15 carries for a game-high 75 yards and two touchdowns. Montgomery also added three catches for 20 yards.

He’s now found the end zone 10 times this season, but Sunday was Montgomery’s first game with multiple touchdowns since a 47-9 win over the Dallas Cowboys on Oct. 13. Montgomery and the Lions are rolling right along this season.

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Brock Purdy, San Francisco 49ers QB

Just when Purdy and the 49ers seem like they’ve turned a corner, disaster strikes on the field. That’s what happened in Sunday’s 20-17 home loss to the Seattle Seahawks.

The former Iowa State quarterback still managed a decent day, finishing 21-for-28 for 159 yards with one touchdown and one interception. Purdy also added five carries for 40 yards and a score. He’ll look for a rebound winning performance Sunday at Green Bay.

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Breece Hall, New York Jets RB

It’s a broken record at this point. Hall goes for a decent day, even as his New York Jets continue to sputter significantly.

In Sunday’s 28-27 loss to the Indianapolis Colts, the former Iowa State running back finished with 16 carries for 78 yards and a touchdown. Hall also added seven catches for 43 yards and a score. It’s impressive the stats keep coming even as the wins aren’t.

Dargan Southard is a sports trending reporter and covers Iowa athletics for the Des Moines Register and HawkCentral.com. Email him at msouthard@gannett.com or follow him on Twitter at @Dargan_Southard.



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