LINCOLN - Senator Sorrentino introduced legislation Tuesday that would require the Legislature to review the University of Nebraska Board of Regents’ proposed takeover of Nebraska Medicine, a major health care provider in the state. Under LB1125, sponsored by Sen. Tony Sorrentino of Elkhorn, any contract initiated by the University of Nebraska (NU) to acquire a controlling or sole interest in a hospital or health care facility valued at more than $100 million would be subject to legislative approval. If lawmakers are not in session when such a deal arises, the Legislature’s nine-member Executive Board would convene to consider it. Last week, the regents unanimously approved an $800 million plan for NU to become the sole owner of Nebraska Medicine after its partner Clarkson Regional Health Services indicated it would withdraw from the partnership.
Amid that backdrop, the University of Nebraska and Clarkson Regional Health Services have moved to replace nearly all members of the Nebraska Medicine Board of Directors as the organizations advance the $800 million purchase and transition to sole ownership. The restructuring replaces much of the existing board — including the CEO and previous chair — with new members drawn from NU and Clarkson leadership, a step officials say is necessary to protect the nonprofit’s stability and mission as governance changes. NU and Clarkson filed amended articles of incorporation with the Nebraska Secretary of State to formalize the changes, and the four new voting members include NU President Dr. Jeffrey Gold and Clarkson’s CEO Dr. Bill Lydiatt, among others.
The board overhaul comes amid escalating legal and political tensions. The former Nebraska Medicine board had filed a lawsuit attempting to block the NU-Clarkson deal and expressed concerns about being excluded from negotiations, asserting they were fulfilling their fiduciary duties by questioning the transaction. Some state lawmakers have described the board changes as drastic, likening them to a “nuclear option,” and there is growing discussion in the Legislature — including proposals like Sorrentino’s bill — about strengthening legislative oversight of large hospital acquisition deals in Nebraska.