TALLAHASSEE, Fla. (WCTV) – City hall watchers, advocates, a city commissioner and a contracts lawyer said Wednesday that the proposed agreement to transfer Tallahassee Memorial Hospital to Florida State University (FSU) contains an “unusual” provision that waives a requirement a lease be agreed to before the hospital is transferred.
City Commissioner Jack Porter said the language, found on page 20 of proposed “Transfer of Assets Agreement,” means that even if Tallahassee Memorial Healthcare (TMH) and FSU don’t agree to a lease, the hospital could still be transferred at the city’s discretion.
A contracts lawyer unaffiliated with the deal, who requested anonymity to speak in a personal capacity instead of on behalf of his firm, said the provision was “unusual” and signaled that city hall leaders potentially want the hospital transferred with or without a set structure for the new “FSU Health” board.
“If the city really wants this lease, then this language is kind of weak,” the lawyer said.
Dr. Bruce Strouble and Tallahassee ALERT first called attention to the provision of the proposed agreement on Monday night. They held a press event on Wednesday in front of Tallahassee City Hall.
The language in question reads: “FSU and TMH shall have agreed upon a final version of the FSU-TMH Amended and Restated Lease, provided, that if FSU and TMH have not agreed upon a final version of the FSU-TMH Amended and Restated Lease by April 1, 2026, this condition shall no longer be applicable and automatically removed as an obligation to close.”
According to a public transparency portal the city setup for FSU Health related documents, FSU and TMH had not yet agreed to a new lease as of February 23, 2026.
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The two organizations announced a landmark deal to create a new academic health center, known as FSU Health, in September of 2025. Supporters say the deal requires FSU Health to continue indigent care, and will bring in better doctors and keep med school talent in town.
Plus, they’ve argued a capital city should have an academically affiliated hospital, and that FSU and TMH have long sought to form a partnership.
The deal has hit a snag, though. About a month after the deal was announced, a TMH spokesperson said the non-profit would not agree to any board structure that saw the state appoint a majority of members of the FSU Health board. So far, FSU and TMH have agreed to give Florida A&M University one of FSU’s seats, but a proposal to give Tallahassee State College one of TMH’s seats has so far been rejected.
That leads Strouble, Porter and others to wonder what might happen if the impasse remains when April 1 rolls around.
According to a proposed lease in the city’s transparency portal, which has not been signed, TMH would retain 9 seats while FSU would retain 8.
Porter believes a lease deal will likely be struck, though she takes issue with how rushed the process has been.
She added that without a lease, she presumes FSU would simply become the landlord, making a partnership creating FSU Health less likely.
WCTV reached out to spokespeople for TMH, FSU, the City of Tallahassee, all four city commissioners and Mayor John Dailey. As those statements roll in, we’ll update our article below.
You can read the full Transfer of Assets Agreement below:
Tune in to Eyewitness News at 5 and 6 for the full story. This story will also be updated this evening with more details.
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