Trustee floored by attorneys fees in Mercy Iowa City sale

Attorneys  fees totaling almost $1 million, which will be borne by the bankrupt hospital, "shock the conscience" in the sale of Mercy Iowa City hospital, a bankruptcy trustee said, according to a Nov. 9 report from The Gazette.

Chicago-based attorneys  McDermott Will & Emery accumulated $922,897.50 over the first few weeks of the bankruptcy case only, equating to a blended rate of $1,273.49 an hour, according to the report. The firm also received a retainer of $761,951.

Multiple attorneys and alleged excessive billing by the company were among the complaints from acting U.S. trustee Mary Jensen, who is seeking the return of at least some fees. The total amount "shocks the conscience," she said in the report.

Other firms and individuals have also filed for payment from the hospital for their services.

Mercy Iowa City is on the hook for such fees with its purchaser, Iowa City-based University of Iowa Health Care, agreeing to pick up operating losses only from Dec. 1.

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