Nebraska Regents Overhaul Nebraska Medicine Board Amid Legal Turmoil

Jan 26, 2026, 2:17 AM
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The University of Nebraska Board of Regents has taken decisive action to restructure the Nebraska Medicine Board of Directors, a move that follows a contentious $800 million buyout deal with Clarkson Regional Health Services and a lawsuit filed by the Nebraska Medicine board itself.
The reconstitution of the Nebraska Medicine board, which was announced by the regents, comes after what they described as "serious concerns about recent actions and behaviors" from the previous board members. This restructuring is seen as necessary to protect the organization's reputation, stability, and future, ensuring that it can continue to fulfill its charitable mission effectively.

The Context of the Changes

The decision to overhaul the board was influenced by the Nebraska Medicine board's legal action against the regents, which the regents characterized as an inappropriate response to the buyout deal. The regents stated that the previous board's actions threatened critically important mission-driven strategic initiatives related to the buyout.
In a joint statement, the University of Nebraska and Clarkson expressed their determination to complete the transaction without board changes, but indicated that the restructuring was necessary after a careful review of current circumstances and Nebraska Medicine's governing documents. The amended articles of incorporation for Nebraska Medicine were filed shortly after the announcement, indicating the urgency of the situation.

New Board Composition

The newly appointed board includes Dr Jeffrey Gold, president of the University of Nebraska; Dr Dele Davies, interim chancellor of the University of Nebraska Medical Center (UNMC); William Lydiatt, CEO of Clarkson Regional Health Services; and Stephanie Moline, a current board member. Only Dr Davies was previously on the board before these changes.
The regents emphasized that this interim board would remain until the buyout deal is finalized, expected to close by June 30. Following the completion, Nebraska Medicine is set to establish its own physician-led board and governing structure, further delineating its operational independence.

Legislative Response and Controversy

The restructuring has not been without controversy. State Senator Brad von Gillern expressed disappointment over the board's dismissal, highlighting the importance of the Nebraska Medicine board members, who are significant donors and leaders in the Omaha community. In response to the turmoil, State Senator Tony Sorrentino has introduced a bill aimed at requiring legislative approval for large contracts, such as the one involving the NU system and Clarkson, indicating that this situation has heightened scrutiny on such transactions.
Senators described the changes as a "nuclear option," reflecting the intense emotions surrounding the decision. The rapid developments have prompted calls for increased transparency and communication between the university's regents and Nebraska Medicine.

Future Implications

As Nebraska Medicine transitions to its new governance structure, the implications for its operations and relationships with community stakeholders will be closely watched. The buyout deal itself, which includes a significant financial commitment from Clarkson back to the University of Nebraska for future health projects, adds an additional layer of complexity to the situation.
This ongoing saga highlights the challenges facing healthcare governance in Nebraska, particularly as the state navigates significant financial and operational changes within its medical infrastructure. As the situation evolves, stakeholders will be seeking clarity on how these changes will affect Nebraska Medicine's mission and its role in the broader community.
In summary, the Nebraska Board of Regents has initiated critical changes to the Nebraska Medicine board to address legal disputes and operational concerns. The outcome of these changes will likely influence the future of healthcare governance in Nebraska.

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