3 former Nebraska Medicine CEOs weigh in against deal

Three former leaders of Nebraska Medicine have expressed their “sincere concerns” about a potential plan for the University of Nebraska to buy out the hospital’s private partner.

In a letter made public Tuesday, Dr. James Linder, Dr. Den DeBehnke and Glenn Fosdick said they were, “writing as former Chief Executive Officers of Nebraska Medicine to share our perspective and sincere concerns about the University of Nebraska Board of Regents’ proposed takeover.”

The former CEOs sent the letter in response to a plan in which the university would pay $500 million to Clarkson Regional Health Services to buy out its 50% interest in Nebraska Medicine and $300 million to buy land and buildings Clarkson owns. As part of the deal, Clarkson would donate $200 million to the university.

The Board of Regents had been scheduled to vote on the plan at a meeting on Friday, but the meeting was postponed until Thursday after a group of 32 Nebraska state senators sent a letter to the regents, urging them to postpone the vote until "all viable alternatives have been considered and until all stakeholders understand the impact of the proposal for the state and these two great institutions."

"While the Board of Regents Agenda Item Summary for the January ninth meeting indicates that the Board has 'negotiated the final agreement over a series of meetings in the past 18 months,' the public and the Legislature have had very limited visibility to understand the proposal, its impact, and any financial implications of such a transaction," State Sen. Brad von Gillern wrote in the letter.

NU officials, including President Dr. Jeffrey Gold, a former chancellor of the University of Nebraska Medical Center and board chair for Nebraska Medicine, have said patients will see no difference in the quality of care or costs and Nebraska Medicine will remain a nonprofit medical center.

The Nebraska Medicine Board of Directors, meanwhile, has spoken out against the deal, launching a website saying the buyout would take away the independent structure of Nebraska Medicine.

The letter from three CEOs did not directly address what might happen in the future if the deal goes through, but it did discuss why the current structure was implemented.

“The structure of Nebraska Medicine was designed carefully and intentionally to honor close collaboration with our university partner, while protecting independence. The design reflected a clear understanding that academic medical centers operate differently from universities. They compete nationally for top talent, must make timely investments, respond quickly to dynamic market forces, and manage risk in a manner that does not align neatly with academic or political cycle,” the letter says

“From the start, the current structure also established guardrails around major change, ensuring that any significant shifts would be deliberate, unanimous and focused on long-term health care outcomes for the state rather than short-term objectives. Those guardrails were specifically put in place to prevent the kind of takeover now being proposed.”

The regents are scheduled to meet at 9 a.m. Thursday in Varner Hall.