😷New Chapter 11 Bankruptcy Filing - Mercy Hospital, Iowa City😷

On August 7, Catholic-based nonprofit Mercy Hospital, Iowa City (Iowa) and two affiliates (the “debtors”) filed chapter 11 bankruptcy cases in the Northern District of Iowa (Judge Collins) citing the usual menu of ailments befalling healthcare providers from “…improvements in treatments, an increased dependency on technology, a transition to outpatient centers, and an increased focus of providers in specialty areas” to pandemic-induced operating costs to poor and/or declining reimbursement rates. We’ve all seen this movie before.

And like any good movie, there’s a good antagonist here too — at least from the perspective of the debtors. That antagonist takes the form of the debtors’ bondholder, Preston Hollow Community Capital Inc (“Preston”).