City of Tallahassee City Manager Reese Goad and Florida State University have reached an agreement totaling $1.7 billion for the transfer of all City-owned hospital assets currently leased to Tallahassee Memorial HealthCare Inc. View the agreement online at Talgov.com.
“This agreement represents the City Commission’s direction to transfer City-owned hospital assets to FSU to improve healthcare outcomes for Tallahassee and North Florida through expanded specialty care, equipment and research infrastructure,” Mayor John Dailey said. “Implementation will mark a turning point, propelling our community’s healthcare system beyond current constraints and into a higher standard of research-based excellence with regional impact. Embracing this bold step forward exemplifies true visionary leadership.”
A public hearing is scheduled for the City Commission to take final action on March 11 at 9 a.m. in the City Commission Chambers, second floor, City Hall, 300 S. Adams St.
This agreement is the next step in the transformation of the hospital into a full academic health center, operating under FSU Health, a healthcare ecosystem that combines research, clinical care and teaching to bring healthcare innovation and cutting-edge medical advances directly to patients across North Florida.
“The Transfer of Assets Agreement reflects a shared commitment to strengthening healthcare for our community while advancing education, research and clinical excellence,” Florida State University President Richard McCullough said. “We are grateful for the City’s partnership and look forward to the important work ahead as we move toward the creation of a fully integrated academic health center that serves the people of Tallahassee and North Florida for generations to come.”
The agreement includes an FSU investment of $1.7 billion locally over the next 30 years. This commitment consists of a 30-year contribution to citizens as payment for the City-owned assets, a short-term investment to improve local facilities and provide research grants, and a 30-year long-term investment plan aligned with academic health center practices.
Specifically, the contribution to citizens totals $109 million over 30 years, recognizing the citizens’ investment in the original facilities. An additional investment of $250 million by the end of 2034 will upgrade existing local facilities and support clinical faculty, research and other investments. The final portion of the financial commitment will support the development of new clinical and laboratory spaces and facilities.
As outlined in the Memorandum of Understanding (MOU) approved by the City Commission on January 14, FSU will ensure that charity care/indigent care remains in full effect and continues to be at least as generous as what is currently in place.
Academic health centers are integrated healthcare institutions that combine patient care, medical education and research within a university-affiliated hospital system. These institutions play a central role in advancing medical innovation, training future healthcare professionals and providing specialized medical services that may not be available at community hospitals. Typically affiliated with medical schools, research universities or teaching hospitals, academic health centers serve as regional hubs for complex and specialized care. The creation of an academic health center in Tallahassee will bring world-class medical training, cutting-edge clinical research and expanded healthcare services to North Florida, lessening the need for Tallahassee citizens to travel for health care and providing opportunities for others outside the region to travel to Tallahassee for health care.
The Office of Economic Vitality has completed an initial economic impact assessment utilizing source data from the U.S. Department of Commerce, Bureau of Economic Analysis and its Regional Input-Output Modeling System (RIMS II). When paired with the investment commitments, the analysis projects a conservative economic impact exceeding $3.64 billion and the creation of more than 900 jobs over the next 30 years. This represents a long-term economic engine that will reverberate throughout the local economy for decades to come.