Mercy Hospital-Iowa City is located at 500 E. Market St. in Iowa City. (Photo via Google Earth)
The bankrupt Mercy Hospital of Iowa City is taking its former business partners, MercyOne and Catholic Health Initiatives, to court in a dispute over $55 million.
A federal lawsuit, filed on behalf of the Iowa City hospital and its creditors, accuses MercyOne and CHI of scuttling a planned business deal so as to avoid the obligation of paying workers’ pensions while giving a six-figure severance package to a former top executive who often failed to show up for work…