TALLAHASSEE, FL — 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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