Nebraska Medicine - Partial Sale

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Mr.Nuke
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Nebraska Medicine - Partial Sale

Post by Mr.Nuke »

New Nebraska Medicine website signals ramped up fight against NU takeover

https://nebraskaexaminer.com/2026/01/04 ... -takeover/
nebraskaexaminer.com wrote:he Nebraska Medicine board announced Sunday that it had launched an “informational website” aimed at shaping public opinion against letting one of the nonprofit’s owners sell its 50% leadership stake to the other, the University of Nebraska.

The ramping up of the now-public dispute over the group’s future governance comes as the NU Board of Regents prepares for a hearing and possible vote Friday about whether to pay Clarkson Regional Health $500 million for full control.

The regents also will consider a related $300 million transaction for several Clarkson properties in and around the University of Nebraska Medical Center’s midtown Omaha campus, bringing the total price of the buyout to $800 million.
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WiinterU
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Re: Nebraska Medicine - Partial Sale

Post by WiinterU »

From my understanding, there are three organizations involved here. The University of Nebraska Medical Center (UNMC), Clarkson Regional Health Services (Clarkson), and Nebraska Medicine. Nebraska Medicine, a non-profit entity, is controlled by a board made up of Clarkson and UNMC. The primary campus for UNMC and Nebraska Medicine, Nebraska Medical Center, is owned by Clarkson and UNMC, but is shared with Nebraska Medicine. Nebraska Medicine outright owns Bellevue Medical Center, so as to what will happen to it is unknown. Both UNMC and Clarkson previously owned their respective hospitals, University Hospital, and Bishop Clarkson Memorial Hospital, until the 1997 merger.
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OmahaJaysCU
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Re: Nebraska Medicine - Partial Sale

Post by OmahaJaysCU »

Not sold on this being positive. The whole “state run healthcare” angle is extreme though. I’m just struggling to see what the university is getting in terms of value? Control? What’s broken with the current set up other than they don’t call all the shots?

Not a healthcare expert but very curious what people think. This is almost $1 billion deal being made by our flagship public university system. There should be much more public discourse here.
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Re: Nebraska Medicine - Partial Sale

Post by almighty_tuna »

Given that the University is shuttering important departments such as Earth & Atmospheric Sciences (in Tornado Alley of all places) among others, the faculty giving a no confidence vote of the chancellor (who's also now leaving)...why in the world would I trust the University with Nebraska Medicine not just in the ability to run and expand it, but also to put science first. Nope. No thank you.
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nebugeater
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Re: Nebraska Medicine - Partial Sale

Post by nebugeater »

I have to wonder if this isn't being done in part to get back to AAU accreditation. They have combined all the Nebr universities as a step towards this already
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labguy
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Re: Nebraska Medicine - Partial Sale

Post by labguy »

I don't think anything is broken with the current model, however Clarkson Regional Health Services (I think they're now called Clarkson Institute) wants out of the deal that happened when University Hospital and Clarkson Hospital merged in 1997.

Most large, academic-medical centers are owned exclusively by their respective universities. We have a dual-owner model only because what is now Nebraska Medicine was formed from a merger of two health systems.

I guess the question is, if you want to keep the dual-owner model, who would you get to purchase CRHS's 50% stake? Some private equity firm?

Nebraska Medicine is going completely scorched earth on the University system calling it a state take-over, but it's really a case of one owner wanting out and the other owner having first right of refusal.
Ben
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Re: Nebraska Medicine - Partial Sale

Post by Ben »

labguy wrote: Tue Jan 06, 2026 1:46 pm I don't think anything is broken with the current model, however Clarkson Regional Health Services (I think they're now called Clarkson Institute) wants out of the deal that happened when University Hospital and Clarkson Hospital merged in 1997.

Most large, academic-medical centers are owned exclusively by their respective universities. We have a dual-owner model only because what is now Nebraska Medicine was formed from a merger of two health systems.

I guess the question is, if you want to keep the dual-owner model, who would you get to purchase CRHS's 50% stake? Some private equity firm?

Nebraska Medicine is going completely scorched earth on the University system calling it a state take-over, but it's really a case of one owner wanting out and the other owner having first right of refusal.
I have a handful of questions (and I'm in the healthcare biz and very familiar with the local players) about this proposed transaction:
-What will become of Clarkson? Will they still run their Allied Health college, or will this get folded into UNMC? Will they become purely a philanthropic organization, with no actual operations besides giving away their large sum of money? If so, have they provided any guidance as to what they'd give to/fund, besides Project Health?

-The statement about AMCs almost exclusively being owned by their respective universities is just flat out wrong (not faulting labguy, the regents said this as well). One of the examples cited by the regents is U of Minn, and their hospital is a JV (similar to Nebraska Med) with M Health Fairview. Wake Forest Univ Hospital is owned by Advocate Health. There are also a handful of AMCs that are under the "NY Presbyterian" umbrella in NY. Heck, even here in Omaha, Creighton Univ Med Center is owned by CommonSpirit. And that's just off the top of my head, I'm nearly certain there are others...

-I think the question is less about maintaining a dual-owner model, and more about the functional independence of the hospital, outside of the control of the board of regents. It is 100% possible to make this work with buying out Clarkson IF safeguards (independent board, guaranteed funding, separate legal entities) are put in place, and those guarantees don't appear to have been spelled out yet.

I 100% agree, bringing in another party (whether PE or another hospital group like HCA/Trinity/CommonSpirit)to buyout Clarkson would be the worst option.... We just don't have enough info about how the state would pay for this transaction, nor how it would continue to function independently to be able to support it yet...
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Linkin5
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Re: Nebraska Medicine - Partial Sale

Post by Linkin5 »

nebugeater wrote: Tue Jan 06, 2026 1:30 pm I have to wonder if this isn't being done in part to get back to AAU accreditation. They have combined all the Nebr universities as a step towards this already
That’s what I assumed this is all stemming from. When Gold was named as UNL president I had heard that he was hired because he would be able to get UNMC under the UNL umbrella and bring back the AAU accreditation.
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Re: Nebraska Medicine - Partial Sale

Post by strangerthings »

labguy wrote: Tue Jan 06, 2026 1:46 pm I don't think anything is broken with the current model, however Clarkson Regional Health Services (I think they're now called Clarkson Institute) wants out of the deal that happened when University Hospital and Clarkson Hospital merged in 1997.

Most large, academic-medical centers are owned exclusively by their respective universities. We have a dual-owner model only because what is now Nebraska Medicine was formed from a merger of two health systems.

I guess the question is, if you want to keep the dual-owner model, who would you get to purchase CRHS's 50% stake? Some private equity firm?

Nebraska Medicine is going completely scorched earth on the University system calling it a state take-over, but it's really a case of one owner wanting out and the other owner having first right of refusal.
University owned hospital's used to be common but less so now. There are financial incentives for separating the institutions out.
elenafjdzt
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Re: Nebraska Medicine - Partial Sale

Post by elenafjdzt »

This whole situation feels like it’s escalating fast. Launching an informational website to sway public opinion shows just how serious the disagreement has become between Nebraska Medicine’s owners. With the Board of Regents about to consider an $800 million package for full control and related property website deals, it’s no longer just an internal governance issue, it’s a major financial and political decision. A $500 million buyout alone is huge, and adding another $300 million only raises the stakes. It’ll be interesting to see whether the regents see this as a necessary move for long-term stability or an overreach that deserves more scrutiny.
Last edited by elenafjdzt on Sun Jan 18, 2026 1:59 am, edited 1 time in total.
GenX
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Re: Nebraska Medicine - Partial Sale

Post by GenX »

NU Regents Unanimously Approve $800M Clarkson Deal For Nebraska Medicine.

https://nebraskaexaminer.com/2026/01/15 ... -medicine/
nebport5
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Re: Nebraska Medicine - Partial Sale

Post by nebport5 »

Well I can imagine this deal may help extending the streetcar into UNMC.
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Garrett
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Re: Nebraska Medicine - Partial Sale

Post by Garrett »

nebport5 wrote: Fri Jan 16, 2026 9:39 am Well I can imagine this deal may help extending the streetcar into UNMC.
How so?
OMA-->CHI-->NYC
labguy
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Re: Nebraska Medicine - Partial Sale

Post by labguy »

As expected, Nebraska Medicine has filed in District Court to block the deal.
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Re: Nebraska Medicine - Partial Sale

Post by nebport5 »

Garrett wrote: Fri Jan 16, 2026 10:06 am
nebport5 wrote: Fri Jan 16, 2026 9:39 am Well I can imagine this deal may help extending the streetcar into UNMC.
How so?
If they end up selling off part of Clarkson’s land to say a developer for more housing or med tech or maybe another hotel those would all be more helpful than tax exempt land. I’m imagining a scenario where the city reverts back to the original streetcar line terminus with TIF. It doesn’t seem like the potential federal funding will become fluid anytime soon as The Project Health scope seems to have consequently narrowed. And aside from deciding how to best integrate the streetcar with the medical campus funding woes on the state and federal level obviously don’t help.

Would Clarkson shifting more philanthropic also open up other UNMC projects currently challenged by funding? There are of course many moving parts to this whole thing(including the lawsuit) to be sorted out. I’m not suggesting any sort of direct contribution in regard to the streetcar but Clarkson refocusing their mission to advance Nebraska Medicine into the upper echelon of medical institutions may also have indirect benefits.