The final bid from the University of Iowa to buy Mercy Iowa City was $28 million, said Denise Jamieson, vice president of medical affairs and dean of the Carver College of Medicine on Monday.

Preston Hollow Community Capital was the ultimate winner in the auction to operate Mercy Iowa City that ended on Oct. 10 for an undisclosed amount of money. Preston Hollow Community Capital was Mercy’s largest bondholder. UIHC will receive an $800,000 payout following the decision. 

“We strongly believed our proposal was in the best interest of Mercy Iowa City, its employees, its patients, as well as our own employees,” Jamieson said. “We were disappointed in the outcome.”

Jamieson discussed the bid and other things happening within UI Health Care in a question-and-answer posted to the UI’s The Loop website on Monday. The original bid the UI made was for $20 million. UIHC made an initial bid in August 2021 of $605 million. 

In addition to the bid, Jamieson said another $25 million commitment had been made for facility upgrades and $23 million to go toward salaries and benefits once Mercy employees became UI employees.

Despite the outcome, Jamieson said she was pleased to hear that the winning bidder intended to keep Mercy operating as a hospital. 

As for what comes next for UIHC, Jamieson said construction on the new hospital will continue while planning for a new adult patient tower on the main hospital campus.

“In addition to these plans, we continue to explore new partnerships and collaborations to develop and increase access to care in all parts of Iowa, particularly when it comes to rural areas,” Jamieson said. “University of Iowa Health Care remains deeply committed to our mission to serve all Iowans, and we remain open to an array of approaches that further that mission.”