Iowa Hospital Creditor’s Release Appeal Tossed by Eighth Circuit

A Midwestern nonprofit healthcare network doesn’t have standing to challenge liability releases included in the reorganization plan of Mercy Hospital, Iowa City, a circuit court ruled.

An appeal by creditor Mercy Health Network, which does business as MercyOne, over Mercy Hospital’s Chapter 11 plan was tossed Friday by a three-judge panel of the US Court of Appeals for the Eighth Circuit.

The decision affirmed that those who opt out of releases in bankruptcy can’t then challenge the validity of those releases for others and can’t appeal unless they can show immediate financial harm.

MercyOne has no standing to challenge third-party ...