History Established in 1873. The hospital was founded in 1873 by four Sisters of Mercy from Davenport. The Sisters had traveled to Iowa City at the request of the State University of Iowa medical school faculty. By working together to open a hospital, the Sisters were able to care for the poor and sick and the medical school faculty was able to provide training ground for future doctors. The Sisters of Mercy and the University medical school collaborated until 1898, when the Iowa State Legislature provided funds for the University to build its own hospital. This allowed the Sisters to operate the hospital independently and focus on serving the community. Mercy continues today under the sponsorship of the Sisters of Mercy West Midwest Region and serves a 10-county area in southeast Iowa. It offers all major medical specialties and most sub-specialties. In addition to its hospital services, Mercy Iowa City provides a network of primary care clinics in five counties.