University of Nebraska Given Opportunity to Acquire Clarkson’s Stake in Nebraska Medicine
The University of Nebraska Medical Center (UNMC) has been presented with a significant opportunity to acquire Clarkson Regional Health Services’ share of their Nebraska Medicine partnership for $500 million. Additionally, UNMC could purchase Clarkson-area properties for an estimated $300 million, bringing the total potential transaction value to $800 million.
The Board of Regents of the University of Nebraska is scheduled to discuss and vote on these transactions on January 9. The proposal has already garnered substantial political support, including an endorsement from Governor Jim Pillen, a former university regent. Gov. Pillen expressed that this change would ensure the hospital remains under Nebraska control, benefiting the state’s residents by enhancing healthcare and strengthening the university system.
However, the Nebraska Medicine board has voiced strong opposition to the proposed changes. Lance Fritz, chair of the Nebraska Medicine board, stated, “Becoming a state-controlled health system is totally unnecessary and is not in the best interest of our patients, our clinical experts and health care in Nebraska.” He emphasized that the board is committed to preventing a state takeover and maintaining Nebraska Medicine’s independent status.
Dr. Jeffrey Gold, president of the NU system, indicated that patients would not experience changes in care quality or costs at Nebraska Medicine facilities. The core change would be a shift in Nebraska Medicine’s governance from dual ownership to single ownership under UNMC.
Gold compared the potential new governance structure to those at other major academic medical centers, such as the University of Iowa and Ohio State University, which integrate clinical and hospital operations with medical education and training.
The acquisition would allow UNMC to consolidate Clarkson properties around its medical center campus, which is currently a hub of growth and development. Clarkson has committed a $200 million gift to help replace the core hospital building it helped construct.
Despite budget constraints and a projected revenue shortfall, university officials are exploring a mix of private funding, real estate revenue, and potential state budget allocations to finance the $800 million deal. Dr. Gold assured that this project would not divert funds from other university campuses.
Clarkson plans to redirect its focus from healthcare provision to fostering a private foundation aimed at improving health outcomes and healthcare delivery in Nebraska. Jim Landen, Clarkson’s board chairman, expressed pride in the partnership’s achievements with NU and optimism about future contributions.
Dr. Bill Lydiatt, CEO of Clarkson, is enthusiastic about supporting NU’s continued excellence in healthcare and education. Meanwhile, some board members, like Mogens Bay, have raised concerns over NU’s financial capacity to pursue this acquisition amidst budget cuts.
Dr. Gold remains committed to protecting Nebraska Medicine as a public asset and views the acquisition as a strategic move to safeguard the hospital’s future against less favorable out-of-state partnerships.
