Mercy Iowa City, the hospital recently acquired by the University of Iowa, will be renamed University of Iowa Health Care Medical Center Downtown once it merges with UIHC next year.

The rebrand was announced in a press release from UIHC covering updates to the brand identity and logos for the entity, with changes to be rolled out in 2024.

Once Mercy is transitioned into UIHC, its current location at 500 E. Market St. will be referred to as UI Health Care’s downtown campus.

“We are committed to honoring Mercy Iowa City’s legacy as we work to build a model of care for our region that is sustainable and accessible,” Denise Jamieson, UI vice president for medical affairs and dean of the Carver College of Medicine said in the press release. “Each organization brings its own strengths and a shared commitment to serve all in our community.” 

Besides changes to Mercy, the release also announced a change of name for existing UIHC properties. University of Iowa Hospitals and Clinics will now be named University of Iowa Health Care Medical Center, while new logos will be used for UIHC, Carver College of Medicine, Stead Family Children’s Hospital, and the Holden Comprehensive Cancer Center.

Mercy’s name change comes after the UI acquired the hospital in November, the culmination of a long and complex bankruptcy proceeding. It first started over the summer when Mercy was sued by some of its creditors and investors regarding cash losses.

Following this, in August, the hospital filed for bankruptcy before then signed an agreement with the UI to be acquired by the university. Before it could be formally acquired by the university, it went to a bankruptcy auction, where it was initially awarded to Preston Hollow Community Capital, one of Mercy’s bondholders that sued the hospital over the summer.

Preston Hollow had made a winning bid of $29 million, with an additional $1 million as an incentive, and pledged to keep the local community hospital open and operating. Fortunes were changed, however, the auction winner was changed 17 days later to the UI after a disagreement between Preston Hollow and Mercy arose regarding the former’s hesitance to pay off Mercy’s debts.

The UI’s ultimate winning bid of $28 million — with further commitments of $25 million for facility upgrades and $23 million for salaries and benefits of Mercy employees.

The sale of Mercy to the UI was approved by a bankruptcy court in November, and a press release from the two parties around that time stated that the two would merge sometime in 2024.

UIHC has also been expanding its footprint to other parts of Iowa, with plans to open two urgent care clinics in the Quad Cities sometime next year.