Nebraska Medicine is pushing back on a proposal by the University of Nebraska Board of Regents that would give the university full control of the Omaha-based health system.
Under the proposal, the university would pay Clarkson Regional Health Services $500 million for its 50% membership stake in the system. It would also pay around $300 million for the land and buildings Clarkson acquired when the nonprofit first partnered with the university to govern Nebraska Medicine in 1997.
The board of regents is set to meet Jan. 9 to consider the proposal. In its opposition, Nebraska Medicine said the move would allow the board of regents to redirect system resources to cover the university’s broader budget gaps. Health system leaders also said the proposal was negotiated without their input or approval.
“Becoming a state-controlled health system is totally unnecessary and is not in the best interest of our patients, our clinical experts and healthcare in Nebraska, and we are pursuing all actions necessary to prevent a state takeover of Nebraska Medicine,” Lance Fritz, chair of Nebraska Medicine’s board of directors, said in a news release. “We remain fully committed to our mission and believe there is an opportunity to work with the board of regents and Clarkson to move forward more productively and continue Nebraska Medicine’s bright future as an independent health system.”
In an FAQ available on its website, the university said that Nebraska Medicine would not become a state entity under the proposal. Instead, it would remain a separate nonprofit entity with the university as the sole member — similar to the university’s other nonprofit subsidiaries. Nebraska Medicine would continue to have its own board of directors, bylaws and budget, the university said.
In a joint statement Jan. 5, University of Nebraska President Jeffrey Gold, MD, and UNMC Interim Chancellor H. Dele Davies, MD, called the proposal a “tremendous opportunity” for the academic health system.
“Shifting to a new structure aligns us with many of our peer institutions, including those in the Big Ten, and allows us to continue and build upon our mission of providing world-class medical care across Nebraska and beyond,” the leaders wrote.
Clarkson Regional Health Services first notified the university and Nebraska Medicine in July 2024 that it intended to resign its 50% membership interest. As part of the proposed transaction, Clarkson also plans to donate $200 million to the university to support a major campus facility redevelopment initiative at UNMC, known as Project Health.
“The long partnership between the University of Nebraska and Nebraska Medicine has provided generations of Nebraskans with access to world-class medical care, the majority of the Nebraska health care workforce and countless life-saving research breakthroughs,” Dr. Gold said in a statement to Becker’s. “This opportunity allows us to build upon that strong history. We look forward to the discussion among members of our Board of Regents when they take up this matter during Friday’s special meeting.”
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