The independent board of Nebraska Medicine is announcing its strong opposition to the Board of Regents’ proposal to spend nearly $1 billion in taxpayer money to initiate a state takeover of Nebraska Medicine.

“Becoming a state-controlled health system is totally unnecessary and is not in the best interest of our patients, our clinical experts and health care in Nebraska, and we are pursuing all actions necessary to prevent a state takeover of Nebraska Medicine,” said Lance Fritz, Chair of the Nebraska Medicine Board of Directors. “We remain fully committed to our mission and believe there is an opportunity to work with the Board of Regents and Clarkson to move forward more productively and continue Nebraska Medicine’s bright future as an independent health system.”

The Board of Regents’ deal is being negotiated without Nebraska Medicine’s input or approval, contrary to the joint operating agreement between the Members and Nebraska Medicine. Nebraska Medicine’s governing documents explicitly require approval of the Nebraska Medicine Board before these types of changes to ensure predictability, continuity, and strong independent governance.  

Nebraska Medicine’s partnership model with the University and Clarkson has been in place since 1997 and has enabled extraordinary results for patients, doctors, nurses, colleagues and Nebraska communities. Today, Nebraska Medicine is:

• Recognized as the “Best Hospital in Nebraska” for 14 consecutive years
• Provides more than $380M annually in Community Benefit
• Named to Forbes’s list of Best-in-State Employers for seven consecutive years
• Consecutive Magnet Recognition from the American Nurses Credentialing Center since 2008
• The state’s only ACS verified Level 1 trauma center for both adults and children and the region’s quaternary referral center
• One of the top 5 safest academic medical centers in the country, serving patients from across all of Nebraska

“Nebraska Medicine leaders have tried to work closely with the University of Nebraska President Gold, the NU Board of Regents and Clarkson leaders to find a collaborative path forward that would preserve Nebraska Medicine’s independence and protect the legacy of care that has been built over the last three decades,” said Mogens Bay, Vice Chair of the Nebraska Medicine Board of Directors. “The University is in a budget crisis, and the Regents are now voluntarily proposing to spend nearly a billion dollars in taxpayer money at a time when they are actively making cuts across their campuses.”

Impact on Nebraskans and Nebraska Medicine

• Misallocation of funds: The University intends to voluntarily pay nearly a billion dollars to a private foundation (Clarkson). Taxpayer and Nebraska Medicine resources may be used to pay off the acquisition
• Loss of autonomy: Making the Board of Regents the sole member would convert Nebraska Medicine into a University-controlled entity. The Board of Regents would have control over Nebraska Medicine’s resources and would have the power to redirect Nebraska Medicine’s funds to cover the University’s budget gaps including for non-health care purposes. This would slow Nebraska Medicine’s decision-making, increase budget-cycle risk and limit Nebraska Medicine’s ability to invest in health care technology, workforce and facilities.    
• Inappropriate expansion: This would represent a large expansion of the University’s control. The state could become financially responsible for Nebraska Medicine’s 10,000+ employees and more than $1.3B in annual salary/benefits expenses through the state’s subsidies to the University.
• Undermining independent medical care and public trust: The Board of Regents could potentially assert oversight of medical decision-making, controlling what care can and cannot be provided by physicians.
• Enhanced recruitment risks: Recruitment and retention of world-class physicians will be at risk with potentially lower/non-competitive compensation, resource limitations and bureaucracy.  

“Our focus on our mission has never been stronger,” said Fritz. “Our current governance is working well and the Board of Regents’ proposed takeover poses significant threats to the future of health care in Nebraska. We will always do what’s best for our patients, physicians and colleagues, and we remain fully committed to continuing to deliver Serious Medicine. Extraordinary Care.”