The Nebraska Medicine Board of Directors is officially suing to stop the University of Nebraska Board of Regents from securing sole ownership of the nonprofit using an $800 million deal with Clarkson Regional Health Services.
Nebraska Medicine filed the lawsuit Friday, less than 24 hours after the regents voted unanimously to proceed with the $800 million deal. Regents and NU President Dr. Jeffrey Gold had described it as similar to divorce proceedings or selling a house, with sole ownership expected to be transferred by June 30.
Both NU and Clarkson have maintained a 50-50 split of the hospital, clinical and medical nonprofit since 1997.
The transaction, plus a promised donation from Clarkson to NU, is as follows:
- $500 million for NU to buy out Clarkson’s 50% share of Nebraska Medicine.
- $300 million for NU to purchase related Clarkson-area properties.
- $200 million that Clarkson pledges to donate to NU for “Project Health” in Omaha, a $2.19 billion endeavor to build up the next generation of health care.
- In a brief statement Friday, Nebraska Medicine wrote: “This is a necessary but unfortunate step to take, but it is aligned with our commitment to protect the mission of Nebraska Medicine. Out of respect for the judicial process, we will let our complaint explain our serious concerns and requests, and we will not provide further comment.”
An NU spokesperson did not immediately return a request for comment.
Gold and NU regents have argued they are following their legal interpretation of the joint agreement, including advice they said came from the Nebraska Attorney General’s Office. NU leaders also said they acted quickly, in part, to prevent Clarkson from seeking to sell its share to an out-of-state or for profit entity.
The lawsuit, filed in Douglas County District Court, asks the court to decide whether the regents and Clarkson can “unilaterally” enter into transactions that Nebraska Medicine leaders argue violate a joint agreement between NU and Clarkson and Nebraska Medicine’s governing documents.
Nebraska Medicine leaders have argued Clarkson can withdraw from its ownership stake only if the Nebraska Medicine board and NU sign off.
“Plaintiffs believe this answer is clearly no, and thus, file this lawsuit to stop an imminent, harmful and, in part, unlawful, set of transactions,” the lawsuit reads in part.
Nebraska Medicine leaders had argued the deal was unlawful ever since NU and Clarkson publicly announced the idea Jan. 2 after a year and a half of closed-door negotiations that both entities said were subject to “strict” nondisclosure agreements.