The Florida Board of Governors on Thursday approved Florida State University’s (FSU) authority to enter into a long-term agreement with the City of Tallahassee to transfer city-owned Tallahassee Memorial HealthCare hospital assets to the university, moving forward a plan to expand academic medicine, specialty care and research in North Florida.
The action authorizes FSU to execute the Transfer of Assets Agreement for the real and personal property now owned by the city and leased to Tallahassee Memorial HealthCare. Under the arrangement, TMH would continue to operate the hospital under an amended and restated 40-year lease while FSU assumes ownership of the assets.
Board materials show the approval also covers a 30-year installment structure under which FSU would pay the city $109 million in annual payments of about $3.63 million, without interest. Separately, FSU has committed to invest $100 million in property improvements and $150 million in clinical faculty, lab resources and research and academic operations through the end of 2034.
The vote comes about two weeks after the Tallahassee City Commission approved the transfer as part of a broader $1.7 billion, 30-year framework between the city and FSU aimed at developing an academic health center under FSU Health. City and university officials have said the effort is intended to strengthen patient care while expanding medical education and research capacity in the region.
In a separate action Thursday, the Board of Governors also approved a three-year contract extension for FSU President Richard McCullough, extending his term from Aug. 31, 2026, to Aug. 31, 2029. FSU’s Board of Trustees voted unanimously in February to extend his contract.
McCullough, who has served as FSU’s president since August 2021, has been a leading figure in the university’s expansion of research and health care initiatives, including FSU Health. University officials have also pointed to gains in rankings, research spending, student retention and graduation rates during his tenure.
“It’s been the honor of a lifetime, and I’m humbled to be the leader of Florida State University,” McCullough said. “We have a lot of momentum. We’re doing things at a very high level, and we won’t rest until we improve every single day.”
