City Commission approves transfer of city-owned Tallahassee Memorial HealthCare assets, clearing the way for next steps with FSU

Two men in business suits greet each other and shake hands inside a government meeting chamber, with other attendees standing in the background and a photographer capturing the moment in the foreground.
City of Tallahassee Mayor John Dailey and FSU President McCullough shake hands before the City Commission's special hearing on March 11, 2026, to vote on transferring the city-owned Tallahassee Memorial HealthCare and assets to Florida State University. (Bill Lax/FSU Photography)

The Tallahassee City Commission voted Wednesday to approve the transfer of city-owned Tallahassee Memorial HealthCare assets from the City of Tallahassee to Florida State University, a historic step that clears the way for the creation of an integrated academic health center in the state’s capital city. 

Under the City’s action, Tallahassee Memorial HealthCare will continue operating the hospital, and FSU and TMH will continue collaborating as they work toward expanded educational, research and clinical opportunities in Tallahassee and North Florida. 

A panel of officials sits behind a long dais in a formal government meeting room, reviewing materials on computer monitors, with flags displayed behind them and nameplates along the front of the desk.
City of Tallahassee commissioners and staff discuss the transfer of the city-owned hospital and assets to Florida State University during a special hearing on March 11, 2026. (Bill Lax/FSU Photography)

University leaders thanked the Tallahassee City Commission for its leadership and expressed appreciation to the City of Tallahassee for its decades of stewardship of the hospital and its vision in supporting the next chapter of healthcare in the community. FSU also recognized Tallahassee Memorial HealthCare’s decades of service to the community and the longstanding relationship between the two institutions. 

“This is an important moment for our community and for the future of healthcare in our region,” said Florida State University President Richard McCullough, noting the opportunities created by the City’s decision. “We are grateful to the City Commission for its leadership and vision for Tallahassee. Working together with Tallahassee Memorial HealthCare, we can strengthen care for patients while expanding medical education and research here in our capital city.” 

“This is an important moment for our community and for the future of healthcare in our region. We are grateful to the City Commission for its leadership and vision for Tallahassee. Working together with Tallahassee Memorial HealthCare, we can strengthen care for patients while expanding medical education and research here in our capital city.” —  FSU President Richard McCullough

Two men in business suits stand facing each other in a formal council chamber, appearing to converse. One holds a maroon folder labeled “FSU Foundation,” with a dais, chairs, and digital screens visible in the background.
City of Tallahassee Mayor John Dailey and FSU President McCullough talk before the City Commission’s special hearing on March 11, 2026, to vote on transferring the city-owned Tallahassee Memorial HealthCare and assets to Florida State University. (Bill Lax/FSU Photography)

This step supports the ongoing work between FSU and TMH that envisions Tallahassee Memorial HealthCare serving as the clinical anchor of FSU Health, Florida State’s academic health ecosystem that integrates clinical care, medical education and research. 

“TMH and Florida State University are continuing to work together to reach consensus as we carefully finalize the agreements that will guide our long-term partnership. These negotiations are being approached with a shared commitment to the future of healthcare in our community,” said Mark O’Bryant, CEO of Tallahassee Memorial HealthCare. “Once the agreements are complete, we look forward to working alongside FSU to build on our strong foundation of care and further improve healthcare for the people of North Florida.”  

The collaboration builds on years of work between the two institutions. As an example, construction is underway on the FSU Health Research Center on the Tallahassee Memorial campus, a 140,000-square-foot facility designed to bring clinicians, researchers and students together to advance medical research and patient care.  

Once the closing occurs, Florida State University would own the hospital property, while Tallahassee Memorial HealthCare would continue to operate the hospital under a long-term lease and maintain responsibility for hospital operations, employees and patient care. 

University and hospital leaders emphasized that Tallahassee Memorial’s longstanding mission of serving all members of the community will remain unchanged. 

The City’s deed restrictions will ensure the continuation of TMH’s longstanding charity-care commitments. FSU also must maintain the property as a hospital in perpetuity. 

Officials from both organizations said the partnership represents an important step toward building a fully integrated academic health center that will enhance clinical care, expand medical training and advance research for patients across Tallahassee and the Florida Panhandle. 

 

A speaker stands at a podium addressing a large audience in a City of Tallahassee commission chamber, while a line of formally dressed attendees stands nearby and others sit listening throughout the room.
Two people stand and converse in a civic meeting space, one gesturing while the other holds documents, with additional attendees and uniformed officers visible in the background.
A person stands at a wooden podium addressing a public meeting, with seated attendees listening in rows behind them in a large civic meeting room.
Tallahassee City Manager Reese Goad and FSU President Richard McCullough speak before the City Commission's special hearing on March 11, 2026, to vote on transferring the city-owned Tallahassee Memorial HealthCare and assets to Florida State University. (Bill Lax/FSU Photography)