OMAHA, Neb. (KMTV) — University of Nebraska regents approve nearly $1 billion deal to purchase Nebraska Medicine, the state's largest hospital system.
- The decision follows several hours of testimony from both supporters and opponents of the acquisition.
- Under the agreement, the University of Nebraska system will pay Clarkson Regional Health Services $500 million for its stake in Nebraska Medicine and an additional $300 million to purchase land and buildings.
- University leaders will work with Nebraska Medicine over the next six months to transition to the new system structure.
BROADCAST TRANSCRIPT:
The University of Nebraska Board of Regents has voted to purchase Nebraska Medicine, the state's largest hospital, in a deal worth nearly $1 billion that will bring the health system fully under university control.
The decision follows several hours of testimony from both supporters and opponents of the acquisition, which represents the most significant change for the health system since Clarkson Regional Health Services and the University of Nebraska Medical Center partnered in the 1990s to form Nebraska Medicine.
Under the agreement, the University of Nebraska system will pay Clarkson Regional Health Services $500 million for its stake in Nebraska Medicine and an additional $300 million to purchase land and buildings. Clarkson will then donate $200 million back to the university to benefit the state's Project Health Initiative.
The deal has been in private negotiations for 18 months before recently becoming public.
Lance Fritz, chair of Nebraska Medicine's Board of Directors, expressed opposition to the university takeover during the hearing.
"We believe there are better paths forward that support Clarkson's exit while maintaining Nebraska Medicine's independence," Fritz said.
However, Jordan Warchol, associate professor of emergency medicine at Nebraska Medicine, supported the acquisition.
"Nebraska Medicine touts UNMC as its academic partner and it makes sense from an academic health system perspective to be fully aligned with the academic pairing," Warchol said. "That alignment allows us to further our shared mission to improve and invest in healthcare across the state and beyond."
The change comes as Clarkson Regional Health Services seeks to exit the hospital partnership to focus on funding health initiatives instead.
University leaders will work with Nebraska Medicine over the next six months to transition to the new system structure.
