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14 hospital, health system controversies in the last week

Mercy IC being sued by two former executives who say they were not paid promised severance

Hunter 09/13/23 A lawsuit filed against Mercy Iowa City claims that two executives terminated last summer have not been paid their promised severance package.

Former CFO, COO sue bankrupt Iowa hospital for severance

Former Mercy Iowa City executives sue for non-payment

The same day in July that Mercy Iowa City’s largest bondholder petitioned a Johnson County judge to appoint a receiver to take over its operations – a move hospital officials said compelled them to file for bankruptcy days later – a pair of recently terminated Mercy executives also filed suit against their former employer, accusing the hospital of ghosting them and shorting them hundreds of thousands.

Year-long search for new health care system leads Mercy Iowa City back to MercyOne

Lang 7/29/22 A year-long search for a new health care system had led Mercy Iowa City right back where it started. Hospital officials announced in an email to

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