NU Board of Regents to consider full takeover of Nebraska Medicine

OMAHA — State leaders are backing a proposal that would shift full governance of Nebraska Medicine to the University of Nebraska in a deal valued at hundreds of millions of dollars.
The University of Nebraska announced Friday that the Board of Regents will host a special meeting on Jan. 9 to consider and act upon a transfer of governance for Nebraska Medicine. The health network is currently owned in a 50/50 split between the University of Nebraska and Clarkson Regional Health Services. A university news release says Clarkson’s board wants to exit the partnership and leave NU as the sole owner.
NU President Dr. Jeff Gold, who was formerly UNMC chancellor, is billing the proposed change as a unique opportunity for the university and the state.
“It will align us very solidly with the structure of very top tier academic medical centers in the United States including both public and private organizations such as Hopkins and Stanford as well as the University of Michigan, The Ohio State University and many others among our peer groups,” Gold said in a statement.
The transfer comes with enormous exchanges of money. In the proposed transaction, NU would pay Clarkson $500 million and purchase land and buildings owned by Clarkson. The release says the appraised fair market value for the land and buildings is expected to be around $300 million.
As part of the deal, Clarkson would donate $200 million to the university. NU says it would be one of the largest philanthropic gifts in university history and the many would be used to support Project Health, the ongoing facility replacement project on the University of Nebraska Medical Center Omaha campus.
The release says the transaction would not result in any change in daily operations at Nebraska Medicine.
“The Board of Regents is proud to consider this visionary initiative and believe it represents the logical next step in the overall plan to create the world’s best healthcare system in Nebraska,” Board of Regents Chairman Paul Kenney said in a statement. “The structure that is being proposed has been proven to help deliver better health care for citizens where it has been put into action.”
NU and Clarkson have engaged in partnerships since the 1950s, when Clarkson moved its hospital to the current campus with the intent to provide teaching opportunities for UNMC faculty and students. The two entities formally created the nonprofit Nebraska Medicine in 2016.
“I strongly support this transaction because it will directly benefit the citizens of our great state by bringing them better health care and by further strengthening the University of Nebraska system,” Gov. Jim Pillen said. “I am proud to support President Gold and the Board of Regents.”
NU says UNMC and Nebraska Medicine already have many shared aspects, which would ease the transition. The two already share a logo, facilities and many faculty at UNMC are also physicians at Nebraska Medicine.
“This initiative is part of our broader health care vision to transform lives and create a healthy future through education, research, and extraordinary patient care,” Gold said. “I am grateful to the Board of Regents for their hard work and leadership to help make this vision a reality.”
