Mercy Iowa City has appointed Dr. Tom Clancy president and CEO and hired management and advisory firm ToneyKorf Partners LLC to improve the hospital’s operations.
Dr. Clancy most recently served as clinical professor and associate dean for the University of Minnesota School of Nursing.
A news release said he has experience “facilitating multiple healthcare business partnerships with local and national corporations.”
“I look forward to serving this important hospital as its CEO and capitalizing on its history and mission in the region,” he said in a statement. “Our hospital is known for its quality services, low wait times and compassionate patient care by our physicians and staff. With a new urgency for change, these attributes will help guide us through the healthcare landscape during these challenging times.”
He previously served as vice president and chief nursing officer for Mercy Iowa City from October 2018 to August 2019, vice president from 2004-2007, and chief nursing officer from 1996-2003, according to his Linkedin page.
Townhall style meetings have been scheduled for today with staff and physicians.
New advisory firm
The Mercy Iowa City board annonced April 5 it would hire ToneyKorf Partners to help the hospital system achieve a more optimal cash flow situation.
The firm has worked with Mercy Iowa City for several months. Mark Toney, co-founder and senior managing director for ToneyKorf, will lead the organization as it assesses strategic options and new affiliations, according to the news release.
Last summer Mercy Iowa City hired consulting firm Insight Health Partners to conduct an operational performance review, according to The Gazette.
As part of the changes, MercyOne will enter into a transition from the current Management Services Agreement with Mercy Iowa City that began in 2017.
Mike Trachta, MercyOne vice president of network affiliates, will no longer be serving as the interim president of Mercy Iowa City. Mr. Trachta became acting president in August 2021 when former president and CEO Sean Williams resigned.
MercyOne will work with Mercy Iowa City on the transition of other services provided. Much of this transition will occur immediately, although some services will take longer to transition.
Financial challenges
In July, Mercy Iowa City ended its search to find a new healthcare partner, opting to remain affiliated with the MercyOne health network, despite several proposals from larger healthcare systems.
One of those offers was from the University of Iowa Health Care, but Mercy Iowa City rejected the $605 million ownership plan that included $250 million for “primary and specialty care growth to supplement existing strengths in orthopedics and obstetrics,” The Gazette reported in August.
According to Becker’s Hospital Review, Moody’s Investor Service downgraded Mercy Iowa City to B1 in 2021 to reflect “the near-term challenges that Mercy will face following the large operating loss in fiscal 2020, narrow headroom to the debt service convenant in fiscal 2020 and the pronounced December COVID-19 surge, creating headwinds to retire to historical levels of stronger financial performance.”
A B1 Moody’s ranking means the business is considered speculative and is subject to high credit risk.
Mercy Iowa City began its strategic affiliation agreement with Mercy Health Network in 2017 before announcing in June 2021 they would explore options to find a new partner.
