Nebraska Medicine has filed a lawsuit in Douglas County District Court to block an $800 million transaction approved by the University of Nebraska Board of Regents. The legal action seeks to prevent the university from purchasing Clarkson Regional Health Services' stake in the healthcare system, escalating a dispute over the organization's future.
Key Takeaways
- Nebraska Medicine has filed a lawsuit against the University of Nebraska Board of Regents and Clarkson Regional Health Services.
- The lawsuit aims to stop an $800 million deal for the university to acquire Clarkson's partnership stake and real estate.
- The core legal argument is that the deal violates a 2016 joint operating agreement requiring mutual consent.
- Both the university and Clarkson have expressed surprise and disappointment, stating a preference for collaboration.
Legal Challenge Launched Over Partnership Agreement
The lawsuit, filed Friday, directly challenges the university's plan to acquire full control of its partnership with Nebraska Medicine. At the center of the legal filing is a 2016 joint operating agreement which established Nebraska Medicine as an independent nonprofit with equal membership from the university and Clarkson.
According to the complaint, this agreement requires consent from all parties to terminate the partnership. Nebraska Medicine argues that the Board of Regents' deal with Clarkson constitutes a violation of this foundational contract. The healthcare provider has requested a jury trial and is seeking a temporary restraining order or an injunction to halt the transaction immediately.
Background of the Partnership
The 2016 joint operating agreement created a structure where the University of Nebraska and Clarkson Regional Health Services were equal partners in governing Nebraska Medicine. This model was designed to ensure balanced oversight and protect the healthcare system's operational independence. The current dispute threatens to dissolve this long-standing arrangement.
Nebraska Medicine also alleges that the Board of Regents has engaged in pressuring tactics since May 2025. The complaint states the university has refused to approve board seat nominations and has withheld cooperation on routine governance matters, creating an environment intended to force acceptance of the deal.
The Heart of the Dispute: An $800 Million Transaction
The deal, announced publicly on January 2, 2026, involves two major financial components. The University of Nebraska Board of Regents agreed to pay Clarkson $500 million for its membership interest in Nebraska Medicine. An additional $300 million was allocated for the purchase of real estate owned by Clarkson but used by the healthcare system.
Nebraska Medicine's lawsuit contends that these figures are not based on fair market value. The complaint claims the $500 million for Clarkson's stake is "highly overvalued" and that the $300 million for the property far exceeds its actual worth. The university has not yet disclosed the complete financing plan for the purchase, indicating it will rely on bond sales and state appropriations.
Financial Implications
- $500 Million: Price for Clarkson's membership stake in Nebraska Medicine.
- $300 Million: Price for Clarkson-owned real estate.
- New Costs: The lawsuit alleges the university plans to charge Nebraska Medicine rent for properties it currently uses rent-free.
Furthermore, the lawsuit raises concerns about future operational costs. "The University intends to charge Nebraska Medicine, through its subsidiary The Nebraska Medical Center, additional rent, although there is no rent currently paid," the complaint reads. This suggests that if the deal proceeds, the healthcare system could face new financial burdens imposed by the university.
University and Clarkson Respond to Lawsuit
Both the University of Nebraska Board of Regents and Clarkson Regional Health Services have issued statements expressing their disapproval of the lawsuit.
The Board of Regents stated they were "saddened and puzzled by this unnecessary action." Their statement emphasized a desire to work collaboratively with Nebraska Medicine.
"The Board of Regents has stated multiple times... that we have a sincere desire to work in a collaborative fashion with Nebraska Medicine to grow and strengthen health care... We moved immediately to once again extend a warm and personal offer to meet and forge ahead together."
Clarkson's board echoed this sentiment, stating they were "surprised and disappointed" by the legal challenge. Their statement reiterated that their preference was always for a cooperative solution. "Despite this unnecessary action... Clarkson remains ready to engage in discussions to resolve this matter," the statement concluded.
Concerns Over Patient Care and Institutional Independence
The conflict has drawn attention from state legislators and medical professionals who worry about the potential impact on healthcare quality and accessibility. Prior to the Board of Regents' unanimous vote to approve the deal, 32 state senators sent a letter urging them to delay the decision. Former Nebraska Medicine executives also voiced opposition, describing the move as a "state takeover" that removes important operational guardrails.
University of Nebraska President Jeffrey Gold has defended the transaction, suggesting it would benefit the university's strained budget and help maintain affordable tuition. He characterized the agreement as an "amicable divorce."
However, physicians within the system have expressed apprehension. Dr. Beau Konigsberg, an orthopedic surgeon at UNMC, warned of the potential consequences for patient services.
"When decisions about healthcare compete with other priorities, patients ultimately bear the burden. We risk losing the ability to recruit and retain physicians, invest in technology and services, and respond to urgent and emerging needs."
The lawsuit now places the future of the partnership in the hands of the court, with a potential trial determining whether the $800 million deal can proceed.