TALLAHASSEE, Fla. (WCTV) – The creation of FSU Health is one step closer to completion.
Florida State University has agreed to the terms of the transfer of all city-owned hospital assets currently leased to Tallahassee Memorial Healthcare.
According to a release from the City, this agreement will begin the transformation of the hospital into an academic health center.
The agreement outlined in the Memorandum of Understanding between the university and the city ensures indigent care “remains in full effect and continues to be at least as generous as what is currently in place,” the release said.
The proposed MOU is valued at $359 million and is subject to approval by the City Commission, according to an internal statement to FSU.
FSU will invest $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,” the release said.
More on the FSU-TMH transfer
“Florida State University is committed to investing in the future of healthcare while expanding our mission of education and research,” FSU President Richard McCullough said. “We appreciate the support from the City of Tallahassee and look forward to establishing an academic health center in North Florida.”
According to the release, this contribution to citizens totals $109 million over 30 years and an additional $250 million by the end of 2034 will upgrade existing facilities. The final portion of the commitment will support the development of new clinical and lab spaces.
“This agreement charts a bold, transformative path forward. Thanks to the dedication of professionals who refuse to accept the status quo, the future of healthcare in Tallahassee will be better,” Tallahassee Mayor John Dailey said. “By aligning our hospital with one of the state’s premier universities to create an academic health center, we are redefining healthcare in a way that positively impacts the lives of residents locally and across the region.”
An analysis of the economic impact estimates an impact of over $3.64 billion and the creation of more than 900 jobs over the next 30 years.
The transfer of assets comes after months of discussion amid public pushback.
Those against the transfer argue the city should not sell its assets to FSU because the state government ultimately controls the university at the direction of the governor.
The decision has garnered mixed reviews from the City Commission.
Commissioner Jeremy Matlow said in a statement that the deal is not in the interest of the public.
“The people of Tallahassee are being robbed in broad daylight and losing a public asset valued at hundreds of millions of dollars for a quarter of the value and only $3 million a year,” he said. “This is a continuation of the trend where insiders win in backroom deals and the rest of the public gets screwed.”
Commissioner Jack Porter said she believes improved healthcare doesn’t mean the sale of the hospital.
“I want to see improved healthcare and an academic health center in Tallahassee—neither of which requires us to sell the hospital. But selling one of our greatest public assets without an appraisal for pennies on the dollar with so little opportunity for meaningful community engagement is a bad deal for Tallahassee,” she said in a statement.
Tallahassee ALERT, a group that launched a campaign to pause the sale of the hospital, called the agreement an “FSU takeover.”
“This new MOU confirms what we feared: FSU gets permanent control of our public hospital, while Tallahassee residents get vague promises and no clear community benefit,” the group said in a statement. “This looks like an FSU takeover, not a true partnership, and we need to slow it down and bring the public fully into the process.”
The group is hosting a Zoom meeting tonight at 7:30 p.m. to coordinate a “unified community response.”
Mayor Pro Temp Curtis Richardson shared his thoughts on the deal in a statement.
“I’m just extremely pleased to hear that we are one step closer to improving the quality of healthcare services for the residents of this region and, in particular, Tallahassee and Leon County,” he said.
Grow Tallahassee, a non-profit organization aimed at promoting economic development in the area, said this agreement is a step toward improving healthcare.
“Our residents are tired of going out of town for specialized care. This agreement is an important step toward delivering better healthcare locally,” the statement read. “It preserves indigent care while generating $109 million to taxpayers and locking in an additional $250 million to modernize local facilities, staff, and equipment, all while bringing specialized care home.”
The City Commission is scheduled to take action on the MOU at its January 14 meeting.
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