TALLAHASSEE, Fla. (WCTV) – The City of Tallahassee and Florida State University have officially reached an agreement for the transfer of Tallahassee Memorial Healthcare.
City Manager Reese Goad and Florida State announced the transfer totaling $1.7 billion on Friday.
It contains the same framework that was first announced in December.
FSU will pay $109 million over 30 years. Additionally, the university will contribute $100 million for property upgrades or related healthcare facilities and $150 million for clinical faculty, lab resources, research and academic operations. The agreement states that these upgrades will be completed by Dec. 2034.
Overall, the university plans to invest $1.7 billion locally over the next 30 years.
Notably, the agreement states that FSU’s obligation to pay is contingent upon state funding.
“In other words, in the even the Florida Legislature does not appropriate funds in a sufficient amount for FSU to perform its obligations under this Agreement that are subject to appropriation, or by proviso language prohibits FSU from using appropriated funds to satisfy its obligations under this Agreement that are subject to appropriation, FSU may terminate this Agreement, subject to the provisions of Subsection 3,” the agreement reads.
The agreement also outlines that the lease restrictions ease after 10 years, meaning that FSU can’t convey the property to any third party for a period of 10 years.
FSU is also required to deliver a written annual report to the City outlining its “compliance with and progress toward” the obligations under the agreement.
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What still remains an unknown as of Friday is how the board seats will be divvied up. Previously, FSU reached memorandums of understanding with both FAMU and TSC saying that both colleges would get a seat at the table. This agreement released Friday between the City and FSU does not outline how the board seats will be divided.
However, so far TMH has rejected the idea of giving TSC one of its board seats. While the agreement calls for many major decisions to be done via a supermajority of the new board, TMH and advocates have warned giving up a TMH held seat to TSC would give the state a majority of the seats. While FSU giving up a seat to FAMU keeps the balance of power the same as originally intended
In a Friday press release, Mayor John Dailey praised the the agreement.
“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,” 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.”
This agreement is the latest step in the creation of FSU Health, which has been a topic of discussion in Tallahassee for months.
While some see this as a positive for the city, others are concerned about the possibility of government control, a rushed timeline and the lack of transparency from city officials.
Tallahassee ALERT issued a statement on Friday expressing its disappointment in the agreement.
“We are deeply disappointed that the City is moving forward with this $1.7 billion transfer of public hospital assets without meaningful, community-wide input. A decision this big , affecting healthcare access, public assets, and indigent care across Tallahassee and North Florida, deserves more than a rushed process,” the statement reads. “Residents deserve transparency, time to review the full agreement, and real chances to ask questions before the City permanently transfers assets that belong to the people. Real leadership isn’t just bold announcements. It requires making sure the public is fully informed and engaged before irreversible decisions are made.”
The agreement released Friday does state that indigent care be maintained “in a manner consistent with or more generous” that the current care requirements.
A public hearing is scheduled for March 11 at 9 a.m. for the City Commission to take final action.
The full agreement and other supporting documents surrounding the transfer can be found here.
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