(Radio Iowa) – A Texas firm that invested in Mercy hospital in Iowa City says the facility is on the verge of insolvency. Preston Hollow Community Capital, headquartered in Dallas, Texas, says it is seeking a court-appointed receivership to restructure the debt of Mercy hospital in Iowa City. The firm’s statement says Mercy Iowa City’s board of directors has failed to shift its approach to deal with unsustainable financial issues and avoid closure of the facility.

Two years ago, Mercy Iowa City rejected the University of Iowa’s more than 600 million dollar offer to buy Mercy Iowa City and turn it into a community division of the University of Iowa Hospitals and Clinics.

According to Mercy Iowa City’s website, 250 doctors are on staff and the hospital has 194 beds for acute care, 25 outpatient surgery rooms and a 23-bed nursery. A spokesperson for the hospital was not immediately available for comment.