Mercy Hospital was recently assessed at a value of $137.3 million, according to a review reported by The Gazette on August 21st. This valuation significantly exceeds the $20 million for which it signed a letter of intent to be acquired by the University of Iowa.
Understanding Mercy Hospital's Valuation
The assessment of $137.3 million reflects a recent expert review of the Iowa City-based hospital's assets and overall value. This figure stands in stark contrast to the acquisition price initially considered, highlighting the complexities often involved in healthcare transactions and property valuations.
Key aspects of Mercy Hospital's worth include:
- Total Assessed Value: The comprehensive review determined the hospital's worth to be $137.3 million. This figure likely encompasses all its assets, operations, and market position.
- Property Holdings: Mercy Hospital owns a total of 14 properties. These real estate holdings contribute significantly to its overall valuation.
- Flagship Campus Value: The core of its physical assets, the flagship hospital campus, is specifically valued at $112.9 million. This indicates that the main campus accounts for a substantial portion of the total assessed value.
To provide a clearer picture of these figures, consider the following breakdown:
| Valuation Metric | Amount | Details |
|---|---|---|
| Recent Assessed Value | $137.3 million | Comprehensive valuation based on a recent review |
| Flagship Hospital Campus Value | $112.9 million | Value of the primary hospital campus |
| Letter of Intent Price | $20 million | Price agreed upon in a letter of intent for acquisition |
| Number of Properties Owned | 14 | Total real estate holdings of Mercy Hospital |
The discrepancy between the assessed value and the letter of intent price, as highlighted by Becker's Hospital Review, suggests that the hospital's underlying assets are valued far higher than the initial proposed selling price. This situation often leads to further negotiations or re-evaluation of acquisition terms. For more details on this specific scenario, you can refer to the report on Mercy hospital properties valued at 7 times its selling price.
