In total so far, a Chicago law firm representing Mercy Hospital in its bankruptcy case has accumulated $6.2 million in fees against a hospital that since its Chapter 11 petition through Oct. 31 had reported a $13.7 million operating loss.
With a bankrupt Mercy Iowa City already inciting objections to the more than $1 million it's accrued in attorney fees tied to Chapter 11 proceedings, the hospital’s interim management and restructuring firm last week submitted another $1 million bill.
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.