UPDATE (09/17/2025)
On Tuesday, Tallahassee Memorial Healthcare and Florida State University announced a new deal had been reached regarding the school taking over the assets of TMH that the City of Tallahassee currently owns.
Now, a special meeting will be held to discuss the deal. The Tallahassee City Commission will hold the meeting on October 1st at 9:00 a.m. at the City Commission Chambers.
In a release, it states the City Commission will receive a presentation from TMH and FSU regarding their Memorandum of Understanding to partner together to transform TMH into an academic health center.
The release also states a second public hearing will be held on October 22nd at 6:00 p.m.
UPDATED BROADCAST TRANSCRIPT:
Tallahassee Memorial HealthCare could soon be rebranded to reflect their new partnership with FSU Health, that's after months of conversations that have led to a new deal between TMH and Florida State University.
The deal reads that TMH's 75-acre property, 2 million sq. foot hospital building, and related assets will be transferred from the City of Tallahassee to FSU, under a new 40-year lease.
Staff were notified in an email Tuesday that read in part.
"Maintaining local control and governance of our hospital was one of our most important tenets, and we believe this partnership accomplishes that goal and will position our organization—and our community—for an even stronger future."
As per the new deal, TMH says all employees will remain employed by TMH, not FSU. They also add that there will be no change to employment, benefits, day-to-day operations, and that TMH will be financially independent from FSU.
It's news that's exciting to some City Commissioners.
"This is tremendous news and I know that with TMH now becoming an academic health center, we can expect more resources to come in and better and more quality services to be provided," said Commissioner Curtis Richardson.
"Truly, this is how we take healthcare to the next level in Tallahassee," said Mayor John Dailey.
Why you think this is going to push healthcare to the next level in Tallahassee and why it's needed for our city?
"The resources that Florida State brings to the table through the College of Medicine, as a research institution, it's just a natural fit in the right direction," said Dailey.
However, it's the news of the hospital being "transferred" that's concerning Commissioner Jeremy Matlow.
"My first impression, it's a non-starter," said Matlow. This is a billion dollar hospital, it's owned by the people of Tallahassee and what's being proposd is we're just going to transfer it to the State."
Matlow says he wants to ensure the hospital is always meeting the needs of the people and that this transfer would take away that power.
When ABC 27 News spoke to neighbors about a potential sale back in March, keeping ownership local was important to ensure accessibility.
"We need a hospital that will take indigent care of people without insurance," said former TMH patient, Kelly Phillips.
Mayor Dailey said he believes the transfer will be a sale.
"We will not be giving the hospital away, but nonetheless, we're very excited," said Dailey.
The City Commission will have to vote on this new deal. One Commissioner said that could be on October 1 at a Special Meeting.
Original:
On Tuesday, September 16th, Tallahassee Memorial Healthcare and Florida State University announced they have made an agreement that TMH would become a part of FSU Health, pending city commission approval. Through this deal, FSU would control all of the city-owned assets of the hospital, including he 75-acre property, 2-million-square-foot hospital building, and related assets.
The release states FSU would then lease the assets to TMH under a new 40-year lease and operating agreement. They say TMH will remain the licensed operator of the hospital, preserving its independent, tax-exempt status, while collaborating with FSU through research, branding, academic, and clinical agreements.
TMH will transition its brand to FSU Health. The release states the hospital’s board will continue to set strategy, approve the budget, and make decisions, though the board composition will now have FSU representation. TMH will also continue to operate under its existing management, and employees will remain TMH employees.
In a joint statement, FSU President Richard McCullough and TMH CEO Mark O’Bryant said the partnership will, in part,
“provide the opportunity to establish the hospital as a true quaternary center—expanding services, extending our reach, generating jobs, and fueling regional growth, all while preserving it as a community-focused hospital.....We are grateful for the trust and collaboration that have brought us to this pivotal moment. Together, FSU and TMH will form an academic health center that serves as a beacon of excellence and hope-- empowering the next generation of health care professionals, driving innovation, and enhancing the well-being of all those we serve.”
BACKGROUND:
In March of this year, during a Tallahassee City Commission meeting, the discussion of a potential sale was brought up, and it received a lot of backlash. At the time, the city was discussing its lease agreement with TMH, as it owned the hospital's land, buildings, and assets, while TMH operates the hospital as an independent nonprofit healthcare system under a long-term lease agreement.
At the time, in the commissioner's agenda, the City Manager's Office stated the hospital requested the City restructure the hospital's governance model and establish a new Health System Board. It was proposed that a new board would oversee the broader TMH health system, while the existing TMH Board would continue to manage the hospital's day-to-day operations. TMH released a statement making it clear the hospital didn't make this request.
Commissioners held an informational-only meeting, where many residents spoke out against the potential sale.
In June, FSU and TMH announced plans to present a proposal to city commissioners in the near future. At that meeting, many neighbors and some elected officials were still against any potential sale.
Mayor John Dailey says this deal will be discussed at a later date.
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