Iowa City-based Steindler Orthopedic Clinic's CEO said Aug. 11 that it will stay independent after its partner hospital filed for bankruptcy.
Mercy Iowa Clinic filed for Chapter 11 bankruptcy Aug. 7, and the University of Iowa in Iowa City submitted an offer to purchase the assets, Steindler Orthopedics President and CEO Patrick Magallanes said in an Aug. 11 Facebook post.
Mr. Magallanes said he thought Mercy could continue as a community hospital, but now a planned asset purchase would mean Mercy "will cease to exist." The auction is expected to be scheduled in September. When the sale closes, UIHC management will operate Mercy.
Patients with Steindler have not been included in conversations about the transition, but care is not expected to be interrupted, Mr. Magallanes said. He also expressed optimism about future opportunities with the hospital.
"I can tell you that the Steindler Orthopedic group will remain independent," he said. "While we may see patients at the new UIHC hospital, we remain an independent orthopedic group. Furthermore, regardless of where we are or where we go, the Steindler Orthopedic Clinic team will focus on the 'Steindler Way' that defines our reputation and the quality of care we've been known for over the past 70 years — at the new UIHC hospital that takes over Mercy Hospital or wherever we see our patients."