The board of directors of Nebraska Medicine has publicly opposed a proposed state takeover of the health system, criticizing an $800 million plan by the University of Nebraska Board of Regents as unnecessary and potentially harmful to patient care and operational independence.

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 Omaha-based health system, which includes Nebraska Medical Center, issued a statement on Jan. 2 outlining its objections. Board chair Lance Fritz called the move “totally unnecessary,” adding that Nebraska Medicine would “pursue all actions necessary” to prevent the acquisition.
The proposed deal, which is being negotiated without Nebraska Medicine’s involvement, would convert the nonprofit health system into a state-controlled entity under the Board of Regents. According to Nebraska Medicine, this would violate the terms of its existing joint operating agreement with the University and Clarkson College, both founding members of the system.

Governing documents for Nebraska Medicine require board approval for any structural changes to the organization’s governance. The board argues that the takeover would undermine that requirement and disrupt a decades-old partnership model in place since 1997.

Board vice chair Mogens Bay described the University’s proposal as fiscally irresponsible, particularly in light of reported budget cuts across its campuses. “The Regents are now voluntarily proposing to spend nearly a billion dollars in taxpayer money at a time when they are actively making cuts,” Bay said.

In addition to financial concerns, the board raised alarms about the potential loss of autonomy, warning that state control could slow decision-making, weaken investment in healthcare infrastructure, and threaten the recruitment and retention of medical professionals. The plan could also introduce new oversight into medical decisions and redirect funds away from healthcare services, they said.

Nebraska Medicine serves as the state’s only Level 1 trauma center for adults and children, and operates as a quaternary referral center. It employs more than 10,000 staff and provides over $380 million in annual community benefit, according to the organization.

Back to HCB News

U.S. Healthcare Homepage