Lease Terms Provided for Transparency, Accountability
A review of the original lease between the City of Tallahassee and what is now Tallahassee Memorial Hospital, first signed in 1979, shows the parties agreed on terms that provided for various levels of accountability.
Despite these terms, the record shows that the City of Tallahassee and hospital officials failed to keep the citizens of Tallahassee and Leon County informed about the operations of their community hospital. The failure to consistently implement the terms of the lease created a relationship without accountability and a level of distrust developed over time.
In addition, over the last 15 years, officials gave the public the appearance that all was well, when actually, the healthcare industry was undergoing a major transformation that had important impacts on community hospitals, including TMH.
TMH made efforts to address the transformation with behind the scenes decisions which were not vetted by city officials or the public. And now there is a community divided over an issue involving two of Tallahassee’s legacy institutions. A divide due, in part, to the failure of local officials to take advantage of a road map laid out by Tallahassee leaders over 40 years ago.
The Lease
In 1979, when officials decided it was time for the city owned and operated hospital to separate from local government, the city transferred the operation to a newly created private non-profit organization and leased the city-owned land and assets to the non-profit
However, the lease went beyond the normal landlord-tenant relationship and included parameters aimed at providing the city access to financial information and power over the governance structure. Some of the more publicized terms of the lease provided the use of city-owned facilities for $1 a year in return for the newly formed hospital provided indigent and charity care.
Until recently, it is fair to say that most people were not aware that the city of Tallahassee owned the building and assets that TMH uses to provide healthcare services.
Board Members and Bylaws
Other terms of the lease that were routinely acknowledged in public meetings included the role that city commissioners played in appointing new board members and in establishing and maintaining the governing bylaws. The lease states that “Neither the Articles of Incorporation nor the Bylaws of the Lessee shall be changed without the approval of the Lessor.”
While understanding a hospitals bylaws are probably best left to lawyers instead of elected officials, the appointment of board members is an important process and allows citizens to be involved with the governance of a community hospital. However, TR’s review of city commission meetings found that when the city was asked by the hospital to approve or confirm a board member, there was very little debate or discussion. In fact, TR could find no evidence over the last 15 years where the city sought citizens to serve on the board. Instead, it appears hospital officials decided on the appointments and the city commission routinely voted to confirm without much oversight.
Public Meetings
The lease also addressed public meetings. The lease stated, “Regular Meetings shall be open to the public. No citizen shall be denied the right to address the Lessee’s Board of Directors. Upon Written request, any citizen shall be promptly placed on the agenda for the next regular Board of Directors’ meeting.”
First, TR could find no publicly available schedule of hospital board meetings. And second, over the last 15 years, there has been scant evidence of any citizens addressing the hospital board.
Financial Transparency
The lease also provided for financial transparency. The lease stated that, “The Lessee covenants that the Lessor shall have the right at all reason- able times to enter upon the premises to examine and inspect the financial books and accounts of the Lessee.” In addition, the lease provided that “The Lessor shall have the right to review the budget of the Lessee.”
However, reviewing city commission archives for the last 15 years, TR could find no request by city officials to review the hospital budget or any request for specific financial information related to the operation of the hospital. It seems that access to TMH’s finances would have been of particular interest over the last 5-10 years given the transformation of the healthcare industry.
Implications
Given the current situation, a divided community promoted by opportunistic politicians, it is unfortunate that the prescription written by leaders over forty years ago was not followed. These leaders put in place parameters that ensured the community would stay a part of the “community hospital.” But somewhere along the way, the accountability and transparency became unimportant to elected officials, then professional staff, then the local media, and finally, the citizens.
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@ Mr. Lyle,
I don’t think it was a “kerfuffle” as you seem to be downplaying the seriousness of the situation, The mayor’s hiring of his friend was a betrayal to every citizen in Tallahassee and Leon County.
Curtis Richardson and Dianne Williams Cox not only had the opportunity, but had the obligation to do their homework regarding this hire. Not only did they not do their homework, they did not question it. They went along with the fix.
So let’s be very clear. It was a gross dereliction of duty. The harm done to Tallahassee is immeasurable.
There is no way that they including the mayor and city manager should be trusted with the TMH decision. They have lost all credibility.
I have no allegiance to Matlow and Porter, but you are attempting to accuse me and may I point out falsely because I don’t share your viewpoint. But, to their credit they did question the hiring of Mr Whitley and they questioned it quite thoroughly.
It would be interesting and informative for Curtis Richardson and Dianne Williams-Cox to publicly make a statement on this regarding their responsibility in this hire. Perhaps they could apologize, explain, or even resign.
@ Prudence: Again, with respect, nothing in my comments intimate that I am a “fan or even a friend” of the mayor or any of the current Commissioners. Your original comment stated, “the leadership”, not “when there is leadership that…” Ergo, my question of “Why would we want them to continue control when they have a proven track record of failure at and indifference to those important factors?”
However, and ironically, your statement criticizing/blaming only “Mayor Dailey, Dianne Williams-Cox, and Curtis Richardson” for this kerfuffle dismisses the other’s role in this and clearly exposes your allegiance to Commissioners Matlow and Porter, who just happen to be the ones opposing this.
So, in your mind, should Matlow and Porter be given a pass on their involvement and complacency?
@ Earnest,
I think Mr. Lyle answered his own question.
Prudence, stop making speeches and answer Ed’s question. If the current leadership has failed to lead, why would you trust them to now lead simply because you’re miffed and tapping your foot with your arms crossed?
@ Mr Lyle,
The track record of Mayor Dailey, Dianne Williams-Cox, and Curtis Richardson is a track record of catering to special interests that serve themselves and not the citizens.
We understand that you are a fan or even a friend, but that is no excuse to not be concerned about their actions, fiscal irresponsibility, and morality. Being that this is a family publication, the Thomas Whitley hire should have merited their resignations.
Tallahassee has suffered greatly because of the inappropriate hire. Citizens were deceived where they were promised someone with the proper credentials could bring great things to the table. If any other business or corporation would have operated in this manner, those people involved would be out the the door faster than you can say lickety split.
What if people hired pilots, air traffic controllers, doctors, dentists, etc….who were unqualified and did not have the proper credentials? That could cause great harm, liabilities, and a deficit of progress. That was the tipping point where you have to say enough and no more.
You could argue that their leadership was subjective, but now there is undeniable proof that they have stepped over the line.
They have deemed themselves unreliable and untrustworthy through deceptive actions.
This is why this issue needs to be tabled and readdressed when there is leadership that is not deceptive, entrenched in special interests, and crosses the line on many levels. Thank you for asking.
@ Prudence: With respect, your statement – “Suspend any further action and readdress this when the leadership is able to provide the proper expertise, transparency and a track record of accountability” – ignores the reality that “leadership” has ignored proper expertise, transparency and a track record of accountability for over 15 years.
Why would we want them to continue control when they have a proven track record of failure at and indifference to those important factors?
What Snydely, CC, and TR said!
This is moving way too fast without the proper expertise, transparency, and the glaring track record of no accountability.
Suspend any further action and readdress this when the leadership is able to provide the proper expertise, transparency and a track record of accountability.
“But somewhere along the way, the accountability and transparency became unimportant to elected officials, then professional staff, then the local media, and finally, the citizens.”
If this statement stands the test of fact, then why would we citizens even want TMH to remain in the control of the City? A City that clearly disregarded their oversight duty and thus dismissed and ignored their duty to hold the citizen’s best interest at its core.
This behaviour is typical in a Florida communitty that elects Democrats each and every time.
Please, Govornor Desantis, stop the process of tranfering ownership of TMH to FSU while you throughly DOGE this entire stinking mess
Citizens of Tallahassee wake up!!!!!!! You elected these officials and dint cate what they do until it affects your pockets or your health. By that time its too late. For more than a decade, the City of Tallahassee has been asleep at the wheel when it comes to its oversight of Tallahassee Memorial Hospital. The 1979 lease did not strip the city of responsibility; it explicitly preserved it, granting access to financial records, budget review authority, and governance oversight in exchange for the use of public land and assets at a nominal $1 per year. Yet city leaders failed to exercise these powers, even as the healthcare industry underwent profound financial and structural change. At no point did the city demand an independent audit of TMH’s books — a basic safeguard whenever public assets and taxpayer trust are at stake. Instead, oversight was reduced to rubber-stamping board appointments and accepting assurances that “all was well.” That silence did not create stability; it created risk. The current public distrust is not the result of sudden controversy, but of years of neglected accountability that city officials had both the authority and the obligation to enforce.