Judge OKs sale of Marshalltown hospital to UnityPoint

MARSHALLTOWN (AP) — One of the state’s largest hospital chains has gained approval to buy Marshalltown’s struggling hospital for nearly $12 million.

A federal bankruptcy judge last week approved the sale of Central Iowa Healthcare’s 49-bed hospital to UnityPoint Health-Waterloo, an affiliate of Des Moines-based UnityPoint Health.

UnityPoint spokeswoman Teresa Thoensen says the $11.9 million deal is expected to close this spring.

The sale followed Central Iowa Healthcare’s declaration of bankruptcy after losing $20 million last year. The losses were blamed on a poor launch of an electronic billing system and difficulties of operating an independent hospital amid moves of most hospitals to larger systems.

Central Iowa Healthcare also owns clinics in Marshalltown, Conrad, State Center and Toledo.

Thoensen says Central Iowa Healthcare employees will be encouraged to apply for jobs with UnityPoint.