NU becomes sole owner of Nebraska Medicine in unanimous regents vote

The University of Nebraska Board of Regents on Thursday unanimously approved the university’s $800 million plan to buy Clarkson Regional Health Services’ half of Nebraska Medicine, along with acquiring several Clarkson-owned properties.

NU President Jeffrey Gold said Clarkson’s withdrawal is a unique opportunity.

"There was the goal of Clarkson to make this seamless, to make it transformational, if at all possible, to enhance the mission, that was clearly in their vision a tight alignment between the University of Nebraska and Nebraska Medicine,” Gold said. “What does it mean to be a world class academic medical center? What are the core values that we share? What does that mean to the people that we serve?”

The university will pay for the deal using a combination of debt structure and monetizing the real estate being transferred through the agreement, either through renting or selling it, according to a university spokesperson.

Regent Tim Clare apologized to Nebraska Medicine leaders and philanthropists for not including them in the conversations leading up to this vote, and said the next six months would be focused on including them in what happens next.

“We can agree to disagree as to why they weren't consulted, but the fact remains that we did not consult these amazing partners, and I'm sorry,” Clare said. “This is not how you treat your partners, and we will do better with our partnership.”

Several regents said this was a “once in a lifetime” chance. Regent Robert Schafer said the university has no intention of taking over Nebraska Medicine or its programs.

“We’re going to have some great teammates to work with at Nebraska Medicine,” he said. “I think they need to understand that we’re going to be your biggest fans. We’re going to help you in more ways than you can imagine.”

Regent Kathy Wilmot shared similar thoughts. She also said the university taking over would not be a state takeover of Nebraska Medicine.

“I don’t have the medical background. I don’t want to run Nebraska Medicine,” Wilmot said. “I want to have it to where a board that knows what's going on can run that, and that's what we're trying to come up with, and make sure that everything's in line with that one mission statement, the one set of goals for the betterment of Nebraska.”

Dr. Bill Lydiatt, CEO of Clarkson Regional Health Services, said the organization made the decision to sell without any influence or pressure from the university, politicians or anyone else. He said the funds from the transaction will be used to make Nebraska the “healthiest state.”

“Our initial focus will be on behavioral health and wellness for new moms and new babies, as well as building the workforce and talent pool required to pursue excellence in health care,” Lydiatt said. “This workforce growth will benefit the general economy and through the creation of primary jobs with high paying wages.”

During public comment, Lance Fritz, chair of the Nebraska Medicine Board of Directors, said the buyout is not in the best interests of Nebraska Medicine, and that the organization has been excluded from its contractual right to be included in negotiations.

“These contractual commitments were made precisely so that this type of sudden change couldn't happen,” Fritz said.

He went on to say that contractual commitment ensures Clarkson can’t sell out-of-state or to a for-profit group without agreement between the university, Nebraska Medicine and Clarkson.

Dr. Beau Konigsberg, an orthopedic surgeon with Nebraska Medicine, said he’s concerned the decision was made without physician input. He added that having NU President Jeffrey Gold, who is a doctor, at the helm helped.

“I take you at your word, and I believe that, and that is reassuring, but I don't know about the next president or the next Board of Regents,” Konigsberg said.

Several representatives from Clarkson College also shared concerns about what the transaction would ultimately mean for them. Dr. Andreia Nebel, president of Clarkson College, said it’s unclear what will happen to the land, buildings and development assets connected to the college.

“The chaos of the last week has been disruptive for the exceptional professionals at Clarkson College who do amazing work every day,” Nebel said.

Serena Wilson, the student senate president at Clarkson College and the Nebraska State Student Nurses Association president said she is shocked and confused by the announcement of the transaction and the news stories since.

“I chose Clarkson College because it was recommended for its reputation,” Wilson said. “The culture is truly unlike any other schools I have attended.”

Some University of Nebraska-Lincoln faculty members, like Ross Dixon, an assistant professor in the department of earth and atmospheric sciences, questioned where the $800 million for the transaction was coming from. The proposed buyout comes a month after the Board of Regents voted to eliminate four departments at the campus in December. Not long after, the UNL chancellor resigned, receiving a $1.1 million payout.

“I'm a bit concerned that suddenly there is a million dollars to pay off a chancellor who never bothered to meet with his committees, wasn't even willing to show up in person to give awards, and that there's almost a billion dollars available to buy a hospital,” Dixon said. “I'm very perplexed by this whole thing.”

Clarkson Regional Health Services representatives and NU regents have been discussing the buyout for about a year, when the two groups signed a “letter of intent” on Jan. 27, 2025, detailing terms and conditions of the potential transaction.

As part of the buyout, CRHS will donate $200 million to Project Health, a $2.19 billion inpatient hospital for Nebraska Medicine that will be used for teaching, research and health care.

University leaders will spend the next six months working out the bylaws and articles of incorporation for Nebraska Medicine as part of the closing deal, which is set to be done by June 30.