Lincoln surgeon will lose license over sexual harassment allegations

A Lincoln orthopedic surgeon will lose his license and pay a fine as part of a settlement over sexual harassment allegations.

The Nebraska Attorney General’s Office said Tuesday that Dr. Steven Shannon’s license has been revoked for at least two years, and he has been ordered to pay a $20,000 civil penalty as part of a settlement with the Nebraska Department of Health and Human Services.

Shannon had been scheduled for a disciplinary hearing later this month.

Attorney General Mike Hilgers last month filed a disciplinary petition against Shannon, accusing him of “immoral or dishonorable conduct, unprofessional conduct, failure to report a loss of employment and privileges, sexual misconduct, and disruptive behavior.”

In a news release announcing the petition, Hilgers alleged that Shannon had created a hostile environment for nurses and other support staff during 2024 and 2025.

Among the allegations against Shannon were making inappropriate sexual comments to staff members and engaging in a sexual relationship with a staff member who worked directly with him at a clinic.

Bryan Health eventually suspended Shannon’s privileges to practice at its facilities and later terminated him, but Shannon failed to report that termination to Nebraska DHHS within 30 days as required, according to the petition.

The petition alleged that Shannon also applied for employment at a different hospital and not only did not disclose his termination or the suspension of his privileges, but he created a verification-of-employment letter bearing the name and purported signature of a Bryan Health official.

In a statement issued at the time, Bryan said that it acted immediately once Shannon's alleged misconduct became known to executive leadership.