Nebraska Medicine taking legal action to curb Board of Regents’ $800M acquisition
LINCOLN, Neb. (KLKN) — Following the University of Nebraska Board of Regents’ vote to continue pursuing sole membership of Nebraska Medicine, the Board of Directors of Nebraska Medicine is taking legal action to stop the proposed $800 million deal from proceeding.
The complete statement from the board is as follows:
“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.”
This comes after the NU Board of Regents unanimously approved an $800 million transaction on Thursday that includes Clarkson Regional Health System’s withdrawal from Nebraska Medicine and the university’s purchase of Clarkson’s land and buildings.
SEE ALSO: Nebraska Board of Regents approve plan to buyout Clarkson Health from Nebraska Medicine
The deal would give the university complete control of the Nebraska health system.
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.
According to officials, the change is expected to improve alignment and efficiency between Nebraska Medicine and UNMC.
There will be no changes to Nebraska Medicine’s day-to-day operations, services, or staff as a result of the transaction.
It is expected that Nebraska Medicine will remain a separate legal entity and nonprofit organization, rather than being a component of the University.
Former Nebraska Medicine CEOs also oppose the deal, saying the organization’s current format reflects a “clear understanding” that academic medical centers operate differently from universities.
SEE ALSO: Former Nebraska Medicine CEOs oppose Board of Regents’ $800M acquisition
Despite the concerns, the board passed the measure.
Many Regents assured the public that they would not overreach in decision-making at Nebraska Medicine and that patient care would not be disrupted.
Over the next six months, university leaders will finalize the legal details to finalize the deal by the end of June.
