LINCOLN, Neb. (WOWT) – Nebraska Medicine filed a lawsuit Friday, seeking to block the University of Nebraska Board of Regents from purchasing Clarkson Regional Health Services’ stake.

The lawsuit filed in Douglas County District Court challenges the board’s plan to pay Clarkson $500 million for its stake in Nebraska Medicine and purchase Clarkson-owned real estate for $300 million.

Nebraska Medicine has asked the court for a jury trial and a temporary restraining order or injunction to pause the deal.

The Board of Regents and Clarkson announced the deal publicly Jan. 2, with a targeted closing before June 30, 2026.

The University has not disclosed complete financing details for the transaction, citing a need to raise funds through bond sales and state appropriations.

Nebraska Medicine argues the transactions violate a 2016 joint operating agreement that requires mutual consent from all parties, including Nebraska Medicine itself, to terminate the partnership.

The Board of Regents released this statement:

“We are saddened and puzzled by this unnecessary action. The Board of Regents has stated multiple times, including several times in the recent public board meeting, that we have a sincere desire to work in a collaborative fashion with Nebraska Medicine to grow and strengthen health care. The Board of Regents unanimously approved this transaction, and following that vote we moved immediately to once again extend a warm and personal offer to meet and forge ahead together to build a collegial working relationship consistent with Nebraska values.”    

You can attribute this to the University of Nebraska Board of Regents 

The agreement established Nebraska Medicine as an independent, private nonprofit with equal membership from the University of Nebraska and Clarkson.

University of Nebraska President Jeffrey Gold previously stated the deal would help the financially troubled university manage its budget, telling the Nebraska Examiner that “some of the revenue streams provided by Nebraska Medicine could help keep NU tuition more affordable than it might be otherwise.”

Nebraska Medicine said the Board of Regents has already violated its duties as a member by refusing to approve board seat nominations and withholding cooperation on routine governance matters since May 2025, effectively pressuring Nebraska Medicine to accept the deal.

“Nebraska Medicine’s continued success is critically important for the state’s workforce and the patients who rely on the serious medicine and extraordinary care delivered by Nebraska Medicine’s physicians and staff,” the complaint stated.

Nebraska Medicine also claims the $300 million for the property far exceeds the fair market value and the $500 million for Clarkson’s membership interest is “highly overvalued.”

“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.

The lawsuit also argues that even if Clarkson properly withdraws as a member, the University would violate lease terms by preventing Nebraska Medicine’s subsidiary from exercising its contractual right to purchase the Clarkson-owned property.

At its rescheduled meeting Thursday, the Nebraska Board of Regents unanimously approved the proposal.

Thirty-two state senators sent a letter asking the board to delay the vote. Current and former officials with Nebraska Medicine also pushed back on the proposal, calling it a “state takeover.”

In an open letter, three former CEOs claim the current structure allows for Nebraska Medicine to establish guardrails around major changes. But NU President Dr. Jeffrey Gold maintained that care will expand and improve if the deal went through, likening the agreement to “an amicable divorce.”

On Thursday, Dr. Beau Konigsberg, an orthopedic surgeon at UNMC, expressed concerns about patient care.

“When decisions about healthcare compete with other priorities, patients ultimately bear the burden,” Konigsberg said. “We risk losing the ability to recruit and retain physicians, invest in technology and services, and respond to urgent and emerging needs.”

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