Op-Ed: Full ownership of Nebraska Medicine would bring 'evident benefits' for health care, innovation

By Jeffrey P. Gold, M.D.
President, University of Nebraska System

All medical doctors, when they enter the profession, take a simple yet powerful oath. In this oath, they promise to treat their patients with respect and dignity; to provide the highest standard of care; and to dedicate their lives to “the service of humanity.”

It has been decades since I embarked upon my own medical career and took this oath, but it has remained a touchstone throughout every aspect of my professional journey, including in my current role as president of the University of Nebraska System. And it is something I’ve thought a great deal of as our university’s Board of Regents prepares to meet on Jan. 9 to consider a historic, strategic move to become the sole member of Nebraska Medicine.

While many Nebraskans are familiar with Nebraska Medicine, they may not be familiar with its history and the partnership between Clarkson Regional Health Services and the University of Nebraska that supports it.

The story begins in 1869 when Bishop Robert H. Clarkson and his wife established one of the first hospitals in Nebraska. In the 1950s, this hospital moved to 42nd and Dewey Streets to provide academic teaching opportunities for the faculty and students at the University of Nebraska Medical Center. The partnership became even stronger in 1997, when The Nebraska Medical Center (what is now Nebraska Medicine) was formed. CRHS and the University of Nebraska have shared dual-member responsibilities for Nebraska Medicine ever since.

Throughout our long journey together, NU and CRHS have been united by a shared vision to provide world-class care to Nebraskans and to provide the highest quality medical education to the next generation of medical professionals. And so, when CRHS began their plan of divesting their ownership of Nebraska Medicine, they approached the University of Nebraska to take on sole membership, which our Board of Regents will consider during Friday’s special meeting.

This is an opportunity to continue to adhere to the vision that has helped grow Nebraska Medicine into a world-class medical center. It’s an opportunity to continue to provide the top-quality care our patients expect and to further align the mission of Nebraska Medicine with the academic mission of UNMC. It’s an opportunity for us to continue a model that preserves the long-standing non-profit structure of Nebraska Medicine and its governance by an effective, dedicated hospital board.

This does not in any way represent a shift to state healthcare. Nebraska Medicine employees would not become state or university employees. Day-to-day operations would remain the same. In addition, shifting to this new structure aligns the University of Nebraska with many of our peer institutions, including those in the Big Ten, and allows us to continue and build upon our mission of providing world-class medical care across Nebraska and beyond. This opportunity sets the stage for continued growth, continued innovation and continued affordable and accessible world-class health care.

This is an incredible opportunity, but like all opportunities, it comes with a cost. In exchange for Clarkson's withdrawal and resignation of its membership interest, the University of Nebraska would pay CRHS $500 million. The University would also purchase land and buildings currently owned by CRHS for appraised fair market value, expected to be approximately $300 million. This would not be paid with any taxpayer dollars, state appropriations or tuition revenue, but rather through carefully planned debt structure and the benefits of the real estate property and other assets being transferred. In addition, CRHS would donate $200 million in support of Project Health; this donation would represent one of the largest philanthropic gifts in the history of the university towards a critically important replacement academic medical center facility.

The benefits are evident, and the opportunity is historic. Nebraska has the chance to dramatically continue the vision and trajectory of Nebraska Medicine that has served Nebraskans well. I believe our best days lay ahead, and I am proud to be part a university system that shares the values I pledged to uphold all those years ago.