Attorney General Hilgers Files Disciplinary Action Against Lincoln Orthopedic Surgeon Accused of Sexual Harassment

Lincoln -- Attorney General Mike Hilgers announced that his office has filed a Petition for Disciplinary Action against Steven F. Shannon, M.D., a Nebraska-licensed physician and orthopedic surgeon, alleging immoral or dishonorable conduct, unprofessional conduct, failure to report a loss of employment and privileges, sexual misconduct, and disruptive behavior.

The petition, filed on behalf of the State of Nebraska and the Nebraska Department of Health and Human Services, Division of Public Health, alleges that Shannon was employed as an orthopedic surgeon at B.H. in Lincoln, Nebraska, and served as supervising physician for multiple physician assistants. Coworkers reported that Shannon created a hostile and problematic work environment for mid-level and nursing staff during 2024 and 2025. 

Shannon engaged in inappropriate sexual comments and conduct toward staff members, including physician assistants under his supervision, and that he engaged in a sexual relationship with a staff member who worked for him in clinic and scrubbed into his operating room. Shannon’s conduct occurred in workplace and work-related settings, including after-hours “journal club” events, sales representative dinners, clinical settings, and text message group chats.

Shannon’s privileges at B.H. were suspended pending an investigation, and he was later terminated for unprofessional conduct. Shannon then resigned and failed to report his termination or resignation in lieu of termination to the Department within thirty days, as required by law.

The petition also alleges that Shannon later submitted employment-related materials through C.H.G. in which he denied prior termination, denied being the subject of an investigation involving sexual misconduct, and denied surrendering or limiting medical privileges pending review or investigation. The petition further alleges that Shannon created a verification-of-employment letter bearing the name and purported signature of a B.H. official, and that B.H. confirmed the letter was not created, signed, or provided by that official.

The matter is set for hearing before the Chief Medical Officer.