TALLAHASSEE, FL — Florida State University and the City of Tallahassee have agreed to terms that would transfer city-owned hospital assets to the university, creating a full academic health center under FSU Health.
According to a joint release, the agreement would transform the hospital into an academic health center that combines research, clinical care, and teaching to bring healthcare innovation and medical advances to patients across North Florida.
Under the proposed agreement, FSU would invest $1.7 billion locally over the next 30 years. The investment includes $109 million over 30 years as payment to citizens for the city-owned assets, recognizing residents' investment in the original facilities.
The release states that an additional $250 million investment by the end of 2034 would upgrade existing local facilities and support clinical faculty, research, and other investments. The remaining funds would support the development of new clinical and laboratory spaces and facilities.
The agreement ensures that charity care and indigent care remains in full effect and continues to be at least as generous as current provisions.
FSU President Richard McCullough says, "Florida State University is committed to investing in the future of healthcare while expanding our mission of education and research. We appreciate the support from the City of Tallahassee and look forward to establishing an academic health center in North Florida."
"This agreement charts a bold, transformative path forward," Tallahassee Mayor John Dailey said. "By aligning our hospital with one of the state's premier universities to create an academic health center, we are redefining healthcare in a way that positively impacts the lives of residents locally and across the region."
The joint statement says the Office of Economic Vitality completed an initial economic impact assessment using data from the U.S. Department of Commerce Bureau of Economic Analysis and its Regional Input-Output Modeling System. The analysis projects a conservative economic impact exceeding $3.64 billion and the creation of more than 900 jobs over the next 30 years.
The Tallahassee City Commission is scheduled to vote on the agreement at its January 14th, 2026, meeting at 3:00 p.m. at City Hall.
Read full press release here.
This story has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Want to see more local news? Visit the WTXL ABC 27 Website.
Stay in touch with us anywhere, anytime.
