Legal Battle Erupts Over Nebraska Medicine Ownership Transition
The Nebraska Medicine Board of Directors has initiated legal proceedings to halt the University of Nebraska Board of Regents from acquiring full ownership of the nonprofit. This move comes in response to an $800 million agreement with Clarkson Regional Health Services, which the regents recently approved.
Nebraska Medicine filed the lawsuit just hours after the regents’ unanimous decision to proceed with the transaction. Regents, alongside NU President Dr. Jeffrey Gold, likened the deal to the finalization of a divorce, with plans to transfer sole ownership by June 30.
Since 1997, the ownership of the hospital, clinical, and medical nonprofit has been equally shared between NU and Clarkson.
Details of the $800 Million Transaction
- $500 million for NU to acquire Clarkson’s 50% stake in Nebraska Medicine.
- $300 million for the purchase of properties in the Clarkson area.
- $200 million pledged by Clarkson to NU for “Project Health” in Omaha, aimed at advancing healthcare infrastructure.
Nebraska Medicine issued a statement, saying, “This is a necessary but unfortunate step to take, but it is aligned with our commitment to protect the mission of Nebraska Medicine. Out of respect for the judicial process, we will let our complaint explain our serious concerns and requests, and we will not provide further comment.”
The University of Nebraska has not yet responded to requests for comment. Gold and the regents assert that their actions comply with the legal framework of the joint agreement, guided by counsel from the Nebraska Attorney General’s Office. They emphasized the urgency to act to prevent Clarkson from potentially selling its stake to external or for-profit entities.
The lawsuit, filed in Douglas County District Court, challenges the authority of the regents and Clarkson to independently execute the transactions, which Nebraska Medicine argues contravenes existing agreements and governance documents.
Nebraska Medicine maintains that any withdrawal by Clarkson from its ownership interest requires approval from both their board and NU.
“Plaintiffs believe this answer is clearly no, and thus, file this lawsuit to stop an imminent, harmful and, in part, unlawful, set of transactions,” the lawsuit states.
The dispute has been brewing since NU and Clarkson revealed the proposal on January 2, following 18 months of private negotiations governed by stringent nondisclosure agreements.
