(Radio Iowa) – The Board of Regents will meet Tuesday to vote on allowing the University of Iowa to purchase Mercy Hospital in Iowa City. The proposal calls for the U-I to pay 20 million dollars for the assets of Mercy Iowa City. The U-I sent a letter to its employees saying the plan includes Mercy entering chapter 11 bankruptcy, and once that process is completed they would join the U-I Healthcare system.

The move comes after Mercy financial investor, Preston Hollow Community Capital, requested the hospital be placed in a court-appointed receivership to keep it from unsustainable financial losses. The U-I says Mercy Iowa City will continue seeing patients throughout the process.