IOWA CITY — University of Iowa Health Care is upping parking permit prices for many of its nearly 20,000 employees in the coming months, affecting morale and compelling thousands to sign an online petition urging management to reduce rates.
“It is unfair and unsustainable for hospital employees to bear such high out-of-pocket expenses just to park their vehicles while they contribute to the welfare of the community,” according to a change.org petition with more than 4,000 signatures. “A change of this magnitude places an additional financial burden on UIHC employees without a corresponding wage increase or additional benefits to offset the cost.
“In some lots, the increase in price is greater than 240 percent.”
UIHC did not provide The Gazette with exact rate increases in response to its request for details.
But officials did confirm that beginning Nov. 1, some UIHC location rates will “be changed to align with the broader University of Iowa parking permit system.” Specific parking permit changes will vary by locations, according to UIHC spokeswoman Brandee Saunders.
“This alignment will support the long?term maintenance and general construction needs of parking facilities that serve both patients and staff,” she said. “All parking permit revenue is reinvested directly into parking.”
As part of the changes, Saunders said parking reciprocity will expand — making it easier for employees who work across various UIHC locations to park when traveling between sites.
“We are in the process of implementing additional transportation and parking options to help with the increases,” she said. “We plan to communicate those changes with employees this fall.”
No parking rate changes are planned for patients and visitors, according to UIHC — which cited its evolution and expansion in needing to update parking permit types and rates “across several locations to align with the standard structure used across the broader University of Iowa campus.”
“Over time, parking costs and convenience have varied widely across our locations,” Saunders said. “As UI Health Care evolves as a unified system, we have searched for opportunities to standardize processes and experiences for employees.”
UI Health Care in the last two years added two new off-site hospitals to its main hospital campus adjacent to Kinnick Stadium in Iowa City. Following Mercy Iowa City’s bankruptcy in 2023, UIHC bought the community hospital for $37.4 million and reopened it as UIHC Medical Center Downtown in 2024.
It also opened a new $525.6 million, 469,060-square-foot orthopedic hospital in North Liberty in April 2025 — in addition to UIHC’s various clinic locations, including in Coralville’s Iowa River Landing District.
Extensive staff and patient parking is required for each UIHC campus — including four-plus lots near the main campus, several lots and ramp parking near the downtown campus, four permitted lots and two patient lots at the North Liberty site, and a ramp adjacent to Iowa River Landing.
The university is building a new $70.8 million, 1,200-space Arena Parking Ramp near the main hospital campus — in support of a new inpatient tower in the works — and the Board of Regents earlier this summer approved construction of a new $40 million parking ramp adjacent to UI Health Care Medical Center Downtown.
Before the new November rate hikes were unveiled — which some employees have told The Gazette will affect the North Liberty hospital staff especially hard — the Board of Regents approved July 1 parking permit rate increases for ramps and lots across the UI campus, including a 6.4 percent bump for “physicians permits,” bringing the cost from $2,820 a year to $3,000 a year.
A reserved UI surface lot spot went up 9 percent from $804 to $876, according to board documents — projecting UI parking system revenue to climb from $31.7 million in the 2026 budget year to $33.2 million in 2027.
“With the understanding that operational costs and policies do change, an increase in the cost of employee parking has a meaningful impact on take-home pay,” according to the petition. “It is crucial to acknowledge that employees are integral to the hospital's success, and hiking parking fees is counterproductive.
“The institution should focus on retaining talent and ensuring staff morale remains high.”
In the petition, workers noted “driving to work is not a choice but a necessity, especially when public transportation is not a feasible option due to shift timings or the distance from home.
“Parking should not add to the financial strain we already face, particularly during a time when the cost of living is rising across all sectors.”
In signing the petition, dozens posted comments, including one employee who said UIHC charged $15 a month when he started and now is charging $73 — a 387 percent increase.
“Our paychecks have not increased even a tenth of that percentage!” he wrote. “And they even make employees pay taxes on this money! In my 42 years in the workforce, UIHC is the ONLY employer I have ever known to charge its employees to park on the employer's own property to perform work for the employer.”
Another person wrote, “Charging employees to be at work is not cool,” and one employee said that with the parking hike and health, dental and life insurance increases, “I will be taking home less than last year. How sad is that?”
When asked about the parking rate increases, Hannah Bott — lead organizer with the Iowa division of SEIU Health Care Minnesota & Iowa, a union representing more than 4,000 UIHC nurses and staff — said “no worker should have to pay their employer in order to park to go to their job.”
“As for the most recent changes, we understand that the increases are to support the parking infrastructure at the university as a whole and not targeted at employees specifically, but they are who will bear the brunt of the changes,” Bott said. “While some of the changes are positive, with the cost to park in some lots decreasing, there are many who will face increased prices or even face being charged to park for the first time in their employment.”
UIHC management, she said, has acknowledged “these changes are mostly unpopular and that they know that parking is a major dissatisfier.”
“Now is a great time for Iowa Health Care to step up and do the right thing by covering parking fees for all staff.”