The system plans to establish an off-site location in North Liberty, Iowa. Iowa’s CON laws require systems to seek approval to develop a new or changed institutional health service or to spend more than $1.5 million on a capital expense in one year.
“Mercy is not proposing to construct a new hospital, because the new off-site department will not provide the full complement of hospital services that would trigger the need for a separate hospital license,” Mercy wrote in a “letter of nonreviewability” submitted to the council June 25.
The new proposed facility will offer both inpatient and outpatient hospital services and will be located in a space owned by a “to be formed real estate entity” that will own the building.
By leasing the space, Mercy’s costs will not top $1.5 million.
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