Florida State University and the City of Tallahassee jointly announced Friday that the two parties have “completed the legal transfer of city-owned hospital assets.”
The university called it a “historic milestone” for its health system, which is also building a hospital in Panama City Beach.
The two entities’ governing boards separately approved the transfer last month, but, as WCTV reported April 2, an April 1 deadline to sign a lease passed.
FSU owns a hospital: City of Tallahassee deal green-lit by trustees, governors
“This milestone reflects years of partnership and a shared vision for the future of health care in our region,” FSU President Richard McCullough said in a news release. “This is a major step forward for FSU Health and for expanding clinical care, research and medical education in North Florida.”
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The contract calls for $109 million to be paid over 30 years. That comes out to about $3.63 million per year and there is no interest charged.
Through the end of 2034, FSU will contribute $100 million to upgrade the property and another $150 million to clinical faculty, resources, and academic operations as stipulated in the contract.
FSU voters showed widespread support, while the city commission voted 3-2 in favor of the transfer.
The facility is and will continue to be leased and operated by Tallahassee Memorial Healthcare Inc.
Although the deal was approved Thursday, the connection between the city and FSU Health can be traced in part to 2021, when the Legislature and governor approved funding for an academic health center at TMH. FSU broke ground on that project in 2023 and it is set to be completed by the end of the year.
“Tallahassee is known across the nation for its high quality of life and, with the future of FSU Health now solidified, our community is poised to play a leading role in advancing medicine while elevating the care available to our residents and the broader region,” Tallahassee Mayor John Dailey said in the news release. “We have successfully strengthened the heartbeat of our city by uniting research, education and patient care.”
When the Legislature created FSU’s medical school in 2000, it was the first medical school opened in 20 years in the nation.
Its charge, according to state statute, is serving “especially the needs of the state’s elderly, rural, minority, and other underserved citizens.”
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