WCHC to buy Kalona’s former Mercy clinic

KALONA — University of Iowa Health Care is preparing to sell its recently acquired clinic at 503 Third Street in Kalona to Washington County Hospital and Clinics, according to a joint news release from the medical providers on Wednesday.

The move means Kalona area residents will continue to have a local health care provider, according to WCHC CEO Todd Patterson.

“It’s a little unclear what the university’s plans are in that space … I believe they’re going to be relocating staff, so what it will do is allow there still to be a health care presence in Kalona,” he said. “The underlying theme is, they’re not going to be supporting Kalona in the future, and so we would step into that space.”

Patterson said WCHC expected to have one doctor’s contract for the location signed by the end of this week, and would have the provider working there “as early as we can.” He added that some internal staff had expressed interest in relocating to the facility as well, and that the organization would hire any other needed nurses and front desk staff.

Patterson declined to comment on the price of the sale, but said funding for the purchase came from grants and private hospital foundation gifts, rather than from the hospital itself. He said the majority of that money was already lined up.

The property’s sale price will eventually become public in a Board of Regents report. The Washington County GIS system says the Iowa Board of Regents paid $250,000 for the property when it was transferred from Mercy Facilities Inc. in January.

The family medicine clinic built in 1971 was formerly owned by Mercy, which filed for bankruptcy in August after several years of financial trouble. The university won an auction for the company’s assets last year, with the deal approved by a judge in November.

The proposed addition to WCHC’s portfolio adds to other facilities it runs in Columbus Junction and Washington, including a critical access hospital, a pharmacy and several clinics. In a statement, Patterson said WCHC was enthusiastic about expanding its services to the north.

“We are proud of our 100-year legacy of providing health care services to Washington County and surrounding community residents,” he said. "Kalona is an important community in our primary service area, and we are excited for the opportunity to expand access to our outpatient services for its residents and a continued collaboration with UI Health Care.”

According to the news release, the change will not affect UIHC’s clinic in Riverside, but will “enable the residents of Kalona and adjoining communities to be served by both UI Health Care and WCHC.”

Denise Jamieson, University of Iowa vice president for medical affairs and Tyrone D. Artz, Dean of the Carver College of Medicine, said the deal built on a “history of collaborating” between the Johnson and Washington county hospitals, which often share specialty providers like OBGYNs, urologists, and emergency care specialists.

“Both organizations are committed to preserving access to care and making sure patients get the right care, at the right place, at the right time,” she said in the joint news release. “WCHC’s proposed purchase of the Kalona clinic presents a unique opportunity for collaboration while maintaining care options in Washington County.”

Comments: Kalen.McCain@southeastiowaunion.com