
Shutterstock photo
You probably heard about the very public bankruptcy of Iowa City’s *other* hospital, Mercy Iowa City, and how around 1,000 jobs were saved when the University of Iowa Health Care (UIHC) agreed to buy Mercy, changing the hospital’s name to UI Health Care Medical Center Downtown.
But you may not have heard about what’s been happening behind the scenes to those health-care workers navigating the transition.
Mercy workers officially joined UIHC on Jan. 31 of this year, becoming part of the Service Employees International Union (SEIU) in the process.
But before they could be represented by the union, workers received an offer letter in the mail from their new employer, according to Chris Russell, an organizer with SEIU Minnesota and Iowa.
They were told the seniority, vacation, and sick time they’d built up at Mercy would be gone, and they would be on a nine-month probationary period. Some even saw a pay cut of $2-$4 per hour. They were given three days to sign it.
“It was kind of a slap in the face,” one worker, a registered nurse who worked for Mercy for over a year, told Starting Line.
They noted their offer was $5 less per hour. “Our hands were tied … There was no place to go if you wanted to stay local.”
Another registered nurse who had been at Mercy for over two years told Starting Line they were offered $5,000 less per year.
“So many threatened to quit that our manager went to UIHC and said, ‘You can’t offer these paychecks; I’m going to lose my entire unit,'” the second worker said.
Both workers said they wanted to remain anonymous for fear of losing their jobs.
Under pressure, UIHC sent workers a new offer letter—but it only covers that unit, a fraction of the total workers they’re bringing in.
Russell told me that they’d tried working with UIHC leadership, including CEO Bradley Haws, for months. Now, they’re hoping a public pressure campaign will start those discussions for the rest of the workers.
“We’re in a shortage,” Russell said of health-care workers. “We want to keep these workers here in Iowa City. We don’t want to force them to have to move away from this area and the state. And that’s what people are doing, because they’re not being treated well.”
Want to help? If you’ve ever been a UIHC patient, show your solidarity to former Mercy workers by sending a letter to UIHC’s CEO here.
This isn’t the first time I’ve written about UIHC workers getting jerked around by their employer, which by the way is overseen by the Iowa Board of Regents. (At least they won!).
What they’re saying: This recent Reddit thread about UIHC’s pay scale is… illuminating.
Support Our Cause
Thank you for taking the time to read our work. Before you go, we hope you'll consider supporting our values-driven journalism, which has always strived to make clear what's really at stake for Iowans and our future.
Since day one, our goal here at Iowa Starting Line has always been to empower people across the state with fact-based news and information. We believe that when people are armed with knowledge about what's happening in their local, state, and federal governments—including who is working on their behalf and who is actively trying to block efforts aimed at improving the daily lives of Iowan families—they will be inspired to become civically engaged.
Why Iowa women’s wages have gotten worse in 2026
Thursday, March 26, is Equal Pay Day, a day highlighting how much less the average American woman makes compared to the average American man. In...
Donations needed for Cedar Rapids TSA workers: Iowa Worker’s Almanac for Mar. 19, 2026
Iowa Worker's Almanac layoffs and news briefs for Mar. 19, 2026: "Eastern Iowa Airport seeks donations for TSA workers" Do you work for the...
Teachers at Iowa’s public colleges say these bills threaten freedom of speech
It's not just about education—it's about controlling what teachers can say in their own workplace. "They're all  trying to  reign in  higher...
Iowa has ‘catastrophic’ psychiatrist shortage: News and layoffs from Iowa Worker’s Almanac Mar. 12, 2026
This week's must-read Iowa worker news: Reining in data centers:Â Linn County residents are concerned about what happens when large corporations...
With Medicaid slashed, Iowa woman relies on unpaid friends for help
I spoke with an Iowa woman who says the government's Medicaid cuts mean she's relying on unpaid care work from her friends. Christie Cellman is a...
7 times labor unions made history in Iowa
The labor movement in Iowa has a rich history of struggles, solidarity, and hard-won victories. Here are seven of the most notable events. Workers...



