Iowa clinic files for bankruptcy following $97M malpractice judgment

OB-GYN Associates of Iowa City & Coralville (Iowa) has filed for bankruptcy following a malpractice judgment of $97.4 million, CBS affiliate KMTV reported Nov. 2.   

Kathleen and Andrew Kromphardt sued the clinic and Mercy Iowa City, alleging their son sustained brain damage in the hours leading up to his birth because medical workers failed to recognize signs of oxygen deprivation. The Kromphardts’ son, now 4, is unable to walk on his own and barely able to speak, according to the report. 

In March, a jury in Johnson County, Iowa, awarded the family $97.4 million in damages. The clinic argues it is responsible for $45 million, with the hospital responsible for the remainder. The Kromphardts’ lawyers, on the other hand, say the clinic is responsible for $75 million. 

Before the trial, Mercy Hospital capped its liability at $7 million, which it paid shortly after the trial’s conclusion, leaving the medical center on the hook for the remainder of the award, the report said. 

The clinic filed for bankruptcy Oct. 31, citing the whole $97.4 million.