Nebraska Medicine Governance

The University of Nebraska Board of Regents is considering a proposal for sole-member governance of Nebraska Medicine, the longstanding primary clinical partner of UNMC.

Since its inception in 1997, Nebraska Medicine has been governed by a dual-member structure between the University of Nebraska Board of Regents and Clarkson Regional Health Services.

Clarkson approached the Board of Regents in July 2024 with plans to resign its 50% membership rights in Nebraska Medicine, which would leave the University of Nebraska as the sole member. 

Key Points You Should Know

If the proposal is approved:

  • Nebraska Medicine will not become a state entity, nor will its employees become state employees. It will remain a 501(c)(3) nonprofit.
  • There will be no changes to day-to-day operations, services or staff because of the proposed transaction. Nebraska Medicine will continue to have its own Board of Directors and budget. Their cash reserves will not be used to address budget shortfalls within the university.
  • The University will not use state funds or other academic programming funds to finance this process.

Shifting to a new structure would align the University of Nebraska Medical Center with many of our peer institutions, and allow us to continue and build upon our mission of providing world-class medical care across Nebraska and beyond.

Questions & Answers

More on the Proposal

Questions & Answers

No. Nebraska Medicine (and its predecessor organization, The Nebraska Medical Center) is a 501(c)(3) nonprofit health system that is wholly owned by the University of Nebraska and Clarkson Regional Health Services, and has been since 1997, with carefully defined reserved and delegated governing authorities. Further, Nebraska Medicine’s tax-exempt status requires it to be a supporting organization for Nebraska Regents and Clarkson.

This will be financed through a carefully planned debt structure and monetization of the real estate property and other assets being transferred. The University will not use state funds or other academic programming funds to finance this process.

No. Nebraska Medicine will remain a separate not-for-profit entity as a 501(c)(3) with the University of Nebraska as the sole member. The University of Nebraska already has several long-standing successful 501(c)(3) subsidiaries that are not-for-profit entities with their own separate governing boards unique to their missions.
No. Nebraska Medicine employees will not become state employees. Nebraska Medicine will continue to be a separate entity with its own employees and employment policies.
No. Many Nebraska Medicine employees – including the physician faculty – are already dually employed by UNMC and Nebraska Medicine and have been for more than a decade. The dual-employment model will not change, nor will the status of all other employees either fully employed by Nebraska Medicine or UNMC.
No. As a separate entity, Nebraska Medicine will have its own budget, cash reserves and governance. Beyond existing commitments and proposed support changes already made by Nebraska Medicine’s Board of Directors to Project Health and other academic/clinical projects, the University will not use the cash reserves of Nebraska Medicine for other uses and leadership of Nebraska Medicine was told that in a meeting on Dec. 17th.

Since Clarkson Regional Health Services is resigning from Nebraska Medicine, the transaction to be considered by the Regents is a transaction between only two parties, the Regents and Clarkson. Once it has resigned, Clarkson will have nothing to say about the future governance of Nebraska Medicine.

The Regents have made it very clear to Nebraska Medicine on numerous occasions and in the Term Sheet that was made public on Friday, that the Regents will not close the transaction until work with Nebraska Medicine Board of Directors about the future governance of Nebraska Medicine is agreed upon.

No. Nebraska Medicine, just like the University’s other 501(c)(3) subsidiaries, will continue to have its own Board of Directors, articles of incorporation, bylaws and budget.
No. Clarkson is not prohibited from withdrawing their membership rights in Nebraska Medicine. This is fully within their governance-determined rights.
The sole-member University governance model is by far the most widely used and most successful governance model of top tier public and private academic medical centers. The two-member model currently in place at Nebraska Medicine represents the historic joint operating agreement by the University and Clarkson Regional Health Services, which was initially entered into in 1997 and revised in 2016.
The University will not limit provider and staff compensation. Just like other academic medical centers around the country that are part of a public or private university system, the Nebraska Medicine Board and Executive leadership will continue to make compensation decisions to recruit and retain top talent.
The University will continue to plan and implement the recently approved Project Health construction based upon the public and private financing that has been committed, including the current Nebraska Medicine commitments and an additional historic philanthropic commitment to Project Health by Clarkson Regional Health Services.
Clarkson Regional Health Services approached the University of Nebraska Board of Regents Chair and the Nebraska Medicine Board Chair in July of 2024 to let the University and Nebraska Medicine know that it intended to exercise its rights under state law to resign from its 50% position in Nebraska Medicine.

Jan. 15 Meeting

Board of Regents
9:00 a.m. Thursday, Jan. 15
Varner Hall, Board Room

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