Lee Health is nearing the final stage of its transition from a government entity to a nonprofit organization after the Lee County Board of County Commissioners and Lee Health Board of Directors approved a Mission Agreement.
Lee Health is approaching the final stage of its transition from a government entity to a nonprofit organization, following approval of a mission agreement by both the Lee County Board of County Commissioners and the Lee Health Board of Directors.
The boards unanimously approved the mission agreement on August 20 and 21, respectively. The agreement outlines the steps necessary to convert the Lee Memorial Health System, a public special healthcare district, into Lee Health System, Inc., a private nonprofit corporation. As part of the agreement, control of the system’s assets and liabilities will be transferred to Lee Health, releasing Lee County from any future financial obligations.
“This vote reaffirms our commitment to caring for Lee County’s most vulnerable residents now and in the future,” Lee Health said in a statement. “By transitioning to a community-focused nonprofit, we are better positioned to secure the resources needed to uphold our safety-net mission and continue providing exceptional healthcare to Lee County residents.”
An independent compliance monitor will oversee Lee Health’s adherence to the agreement, ensuring that the system fulfills its obligations. Should the organization fail to meet the requirements, Lee County retains the right to enforce the agreement through arbitration or legal action. The transition is designed to give Lee Health greater financial autonomy, enabling it to pursue donations and other funding sources that were unavailable under its former public status.
“The District has determined that the long-term continuation of high-quality healthcare services can best be achieved by converting all of the system’s operations, assets, and liabilities to a nonprofit operator,” the mission agreement states.
The document also includes provisions preventing Lee Health from selling or transferring its hospitals without county approval and prohibits the health system from seeking financial support from the county, ensuring its independent operation.
Lee Health, which employs nearly 16,000 staff members and manages over 2.6 million patient encounters annually, currently operates as a public entity governed by a publicly elected Board of Directors. However, the organization asserts that this structure has hindered its ability to expand and adapt, particularly after the partial repeal of Florida’s Certificate of Need program in 2019. Under the new nonprofit structure, governance will shift from a publicly elected board to one composed of appointed members.
The transition also involves a contractual commitment to maintain Lee Health’s role as a safety-net provider, ensuring that care is available to patients regardless of their ability to pay.
The legislative framework for the transition was established by House Bill 227, passed by the Florida Legislature in 2023. The bill established a process for converting Lee Health into a non-profit entity and mandated that the provider submit a detailed plan outlining the transfer of assets and liabilities and resolving debts. It also stipulated that current members of the Lee County Board of County Commissioners cannot serve on the board of the new nonprofit entity, although current or former system board members may do so.