Tallahassee City Commissioners voted Wednesday to accept the proposed Memorandum of Understanding (MOU) between the City of Tallahassee and Florida State University as the basis for the transfer of all city-owned hospital assets currently leased to Tallahassee Memorial HealthCare, Inc. (TMH).
This pivotal agreement establishes a path to transform the hospital long term into an academic health center under FSU Health, a comprehensive healthcare ecosystem, combining advanced research, clinical care and medical education to benefit patients across North Florida.
The MOU ensures the continuation and enhancement of charity and indigent care, guaranteeing support for vulnerable populations while ushering in innovation and improved outcomes for the community.
The agreement lays out a plan for FSU to invest in healthcare locally over the next 30 years. FSU will contribute $109 million over 30 years to the citizens, recognizing their investment in the original city-owned hospital and assets. In addition, FSU will invest $250 million by the end of 2034 to upgrade existing local facilities and support clinical faculty, research, and other investments.
“We are truly grateful for the City Commission’s approval of this transfer,” said FSU President Richard McCullough. “We are now poised to build a world-class academic health center that will change the landscape of healthcare in Tallahassee and beyond. This moment is the culmination of our shared commitment to discovery, care, and opportunity. I look forward to the next steps as we work together to create a healthier future for all.”
Tallahassee Mayor John Dailey expressed optimism about the agreement.
“Today’s vote marks a historic turning point for our city,” he said. “The partnership between Florida State University and Tallahassee Memorial HealthCare will bring groundbreaking medical advances and exceptional care right to our doorstep and shape a brighter, healthier future for Tallahassee.”
Last September, FSU and TMH signed a separate MOU that set the structure for a partnership to create an academic health center in Tallahassee.
“We are encouraged by the progress between FSU and the City of Tallahassee,” said Mark O’Bryant, CEO of Tallahassee Memorial HealthCare. “We look forward to continuing to finalize the terms of our partnership with FSU that will enhance patient care, serve our community, and further strengthen our region as a healthcare destination.”
Academic health centers integrate patient care, medical education and research, and serve as regional hubs for specialized services typically unavailable at community hospitals. The new center will expand specialty care, enhance research infrastructure and reduce the need for residents to travel outside the region for advanced healthcare.
The Office of Economic Vitality’s initial assessment projects a conservative economic impact exceeding $3.64 billion and the creation of over 900 jobs over the next three decades, making this initiative a major engine for local prosperity.
The Commission also announced that the third and final public hearing on the agreement will be held on March 11, 2026, at City Hall, 300 S. Adams St.