The University of Nebraska and Clarkson Regional Health Services have replaced members of Nebraska Medicine’s board of directors, saying the move was necessary after the health system filed a lawsuit to block an $800 million deal that would give the university sole ownership of the Omaha-based system.
In a joint statement published Jan. 22, the University of Nebraska board of regents and Clarkson Regional said they elected to reconstitute the system’s board of directors as they move forward with the transaction.
“While it was the original intent of both the University Board of Regents and the Clarkson Regional Health Services Board to complete their transformative transaction without making any changes to former Nebraska Medicine’s board, they have since determined that this action was necessary to project the organization’s reputation, stability, and future, and to ensure it can continue to fulfill its charitable mission effectively long into the future,” the statement said.
The board restructuring came less than a week after Nebraska Medicine filed a lawsuit to halt the university from moving forward with plans to acquire Clarkson Regional Health Services’ 50% membership stake in the system. Since 1997, Nebraska Medicine has been governed under a joint leadership model between the university and the nonprofit.
On Jan. 15, the university board of regents approved a plan to purchase Clarkson’s stake in the system for $500 million. Under the proposal, it would also pay Clarkson $300 million for the land and buildings involved in the transaction, which is expected to close by June 30, according to the Nebraska Examiner.
Nebraska Medicine officials have described the plan as a “state takeover” of the system, arguing it would allow the board of regents to redirect system resources to cover the university’s broader budget gaps. The health system has also shared concerns about how the deal would affect patient care.
Meanwhile, the university has maintained that Nebraska Medicine would not become a state entity under the deal; it would remain a separate nonprofit entity with the university as the sole member and would continue to have its own board of directors, bylaws and budget.
Earlier in January, the university asked the Nebraska attorney general to investigate Nebraska Medicine, alleging that some of its leaders had attempted to interfere with the proposed governance change by discouraging legislative and philanthropic support for a major redevelopment project at the University of Nebraska Medical Center. Nebraska Medicine previously said the allegations have no merit, calling the request a distraction from unanswered questions about the governance change.
University officials said the new Nebraska Medicine board is an interim body and emphasized it would be replaced by a physician-led board following the completion of the transaction. Four new voting members have been named to the interim board:
- Dele Davies, MD, will serve as chairman of the board. He is the interim chancellor of University of Nebraska Medical Center and past board member of Nebraska Medicine.
- William Lydiatt, MD. He is CEO of Clarkson Regional Health Services and a retired surgeon.
- Stephanie Moline. She is a current board member of Clarkson Regional Health Services and retired executive vice president of First National Bank Omaha.
- Jeffrey Gold, MD. He is president of the University of Nebraska, inaugural board chair of Nebraska Medicine and former chancellor of University of Nebraska Medical Center for more than 10 years.
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