The Tallahassee City Commission voted Wednesday to approve the transfer of city-owned Tallahassee Memorial HealthCare hospital assets to Florida State University (FSU), advancing a long-planned effort to build an academic health center in the city.
The vote marks the next step in an agreement first announced in February, when city officials and FSU said they had reached a $1.7 billion deal to shift ownership of the public hospital assets to the university over 30 years while preserving the hospital’s community care mission.
Under the arrangement, Tallahassee Memorial HealthCare would continue operating the hospital, while FSU would take ownership of the property once the transaction closes. The two institutions are still working to finalize the long-term agreements that will govern the partnership.
City and university leaders have said the deal is intended to expand specialty care, research capacity and medical education in Tallahassee and across North Florida by more closely aligning TMH with FSU Health, the university’s academic health ecosystem.
“This is an important moment for our community and for the future of healthcare in our region,” said Florida State University President Richard McCullough. “We are grateful to the City Commission for its leadership and vision for Tallahassee. Working together with Tallahassee Memorial HealthCare, we can strengthen care for patients while expanding medical education and research here in our capital city.”
TMH CEO Mark O’Bryant said the hospital system and FSU are continuing to work toward final agreements that will shape the long-term relationship, adding that the organizations share a commitment to improving healthcare in the region.
“These negotiations are being approached with a shared commitment to the future of healthcare in our community,” said O’Bryant said. “Once the agreements are complete, we look forward to working alongside FSU to build on our strong foundation of care and further improve healthcare for the people of North Florida.”
Officials said TMH would remain responsible for hospital operations, employees and patient care under a long-term lease structure. They also said the hospital’s mission of serving all members of the community would remain unchanged.
The city has said deed restrictions tied to the transfer will preserve TMH’s charity-care obligations, while requiring FSU to maintain the property as a hospital in perpetuity.