Former Nebraska Medicine CEOs oppose Board of Regents’ $800M acquisition
LINCOLN, Neb. (KLKN) — Three former Nebraska Medicine CEOs signed a letter expressing their opposition to the proposed $800 million acquisition of Nebraska Medicine.
The letter, dated Tuesday, is from former CEOs Glenn Fosdick (2002-2014), Dan DeBehnke (2016-2018), and James Linder (2018-2025) and expresses deep concern about the nearly billion-dollar purchase.
“Leading an academic health system is complex, difficult work. We know, we have done it for decades,” the letter says. “Each of us had the responsibility of leading Nebraska Medicine through periods of growth, challenge and change. We understand what it takes to operate a complex academic medical center in a highly competitive and rapidly evolving environment.”
The former leaders say Nebraska Medicine was designed to honor close collaboration with the University of Nebraska, while protecting independence.
According to the leaders, the design reflected a “clear understanding” that academic medical centers operate differently from universities.
“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 leaders say the structure has worked, enabling Nebraska Medicine to recruit talent, build trust with community partners, and invest in the future of health care in Nebraska.
“Independent governance was never meant to weaken academic partnership. It was designed to protect the capabilities required to deliver excellent care while preserving strong alignment with the University. That balance has been a strength, not a flaw.”
This letter follows Sen. Brad von Gillern’s letter urging the Board of Regents to delay a vote on the acquisition.
Thirty-two other state senators joined in on the letter, which called for greater transparency and public involvement in the decision-making process.
SEE ALSO: 33 Nebraska state senators urge delay of vote on $800 million Nebraska Medicine acquisition
According to the letter sent on Thursday, the regents’ agenda item summary indicates that the board has “negotiated the final agreement over a series of meetings in the past 18 months.”
But von Gilern said the public and the legislature have had very limited “visibility” to understand the proposal, its impact and any financial implications of such a transaction.
The Board of Regents is set to decide on a proposal under which Clarkson Regional Health Services would relinquish 50% of its membership in Nebraska Medicine.
The deal would give the university complete control of the Nebraska health system.
A series of agreements between the two entities includes Clarkson’s withdrawal from Nebraska Medicine and the university’s purchase from Clarkson of the land and buildings Clarkson has continued to own since the partnership commenced in 1997.
Under the deal, the university would pay Clarkson $500 million for its stake and an additional $300 million for all of Clarkson’s land and buildings.
Clarkson also announced a $200 million donation to support the University of Nebraska Medicine’s “Project Health,” making it one of the most significant gifts in its history.
The regents’ meeting is set for Thursday at 9 a.m. in Varner Hall.
