Regents to consider $800M deal that would end Clarkson health system partnership with Nebraska Medicine
LINCOLN, Neb. (WOWT) – Next week, the Nebraska Regents will consider a proposal in which Clarkson Regional Health Services would give up its 50% membership in Nebraska Medicine.
The deal would give full control of the health system to the University of Nebraska.
The university would pay $500 million for Clarkson’s stake. Clarkson would also sell its land and buildings to the university for an additional $300 million.
But Nebraska Medicine told First Alert 6 that they plan to fight it, calling the move a “state takeover” of a private nonprofit health system.
Nebraska Medicine responds
In a news release issued Friday night, Nebraska Medicine said the regents are negotiating the deal “without Nebraska Medicine’s input or approval,” which is “contrary to the joint operating agreement between the Members and Nebraska Medicine.”
Nebraska Medicine said its governing documents “explicitly require approval of the Nebraska Medicine Board before these types of changes” are made.
“Nebraska Medicine’s partnership model with the University and Clarkson has been in place since 1997 and has enabled extraordinary results for patients, doctors, nurses, colleagues and Nebraska communities,” Friday’s release states.
Nebraska Medicine says the deal represents a misallocation of funds, a loss autonomy, inappropriate expansion, enhanced recruitment risks, and an undermining of independent medical care and public trust.
“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, and we are pursuing all actions necessary to prevent a state takeover of Nebraska Medicine,” said Lance Fritz, chairman of the Nebraska Medicine Board of Directors. “…Our current governance is working well, and the Board of Regents’ proposed takeover poses significant threats to the future of health care in Nebraska.”
Nebraska Medicine’s vice chairman, Mogens Bay, said its “leaders have tried to work closely” with Dr. Jeffrey Gold, president of the NU system, as well as the regents and Clarkson leaders, in hopes of finding a way to “preserve Nebraska Medicine’s independence and protect the legacy of care that has been built over the last three decades.”
“The University is in a budget crisis, and the Regents are now voluntarily proposing to spend nearly a billion dollars in taxpayer money at a time when they are actively making cuts across their campuses,” he said in Friday’s news release.
Donation & new focus
As part of the proposed transaction, Clarkson would also donate $200 million to the University of Nebraska.
After the transaction, Clarkson would focus more on its philanthropic efforts through what it calls the “Clarkson Institute.”
Officials say patients wouldn’t need to worry about any changes in Nebraska Medicine’s day-to-day operations.
Meeting information
The NU Board of Regents will meet next week at 3 p.m. Friday, Jan. 9 in the boardroom at Varner Hall, 3835 Holdrege St. in Lincoln.
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