Hospital Transfer Complete with 3-2 Vote

Matlow: “I don’t believe the state should own this hospital.”

The Tallahassee City Commission voted 3-2 Wednesday to approve the transfer of city-owned hospital assets from Tallahassee Memorial HealthCare to Florida State University, a landmark decision intended to transform the region’s primary hospital into a full academic health center and expand healthcare access across North Florida.

Mayor John Daily and City Commissioners Dianne William-Cox and Curtis Richardson voted for the agreement, while City Commissioners Jack Porter and Jeremy Matlow voted no.

There were 12 speakers who addressed the commission with five voicing support and seven making comments opposing the agreement. However, most of those in opposition cited the need for more time to understand the agreement, not specific criticisms with the goal of an academic medical center.

Commissioner Matlow addressed several issues, but it became clear that FSU ownership of the hospital assets was his major concern when he said, “I don’t believe the state should own this hospital.”

The agreement clears the way for the creation of FSU Health, an integrated academic health ecosystem combining clinical care, medical education and research. University officials say the project includes a planned $1.7 billion investment aimed at strengthening medical services, advancing research and expanding physician training opportunities in the region.

“This is a milestone moment for our entire community,” said John Dailey, mayor of Tallahassee. Dailey described the vote as one of the most significant decisions of his public service career, saying it positions the capital city to become a regional hub for healthcare innovation and advanced medical treatment.

Under the arrangement, Florida State University will assume ownership of the hospital property once the transaction closes, while Tallahassee Memorial HealthCare will continue operating the hospital under a long-term lease. TMH will retain responsibility for hospital operations, staff and patient care.

FSU President Richard McCullough said the partnership represents a major opportunity to strengthen healthcare services while expanding academic and research programs in the state capital.

“We are grateful to the City Commission for its leadership and vision,” McCullough said. “Working together with Tallahassee Memorial HealthCare, we can strengthen care for patients while expanding medical education and research here in our capital city.”

The partnership builds on years of collaboration between the university and the hospital system. Construction is already underway on the FSU Health Research Center on the TMH campus, a 140,000-square-foot facility designed to bring clinicians, researchers and students together to advance medical discoveries and improve patient outcomes.

Academic health centers integrate patient care with medical education and scientific research, typically through partnerships between hospitals and universities. Officials say establishing such a center in Tallahassee could reduce the need for local residents to travel to other cities for specialized care while attracting patients from across the Florida Panhandle and surrounding regions.

City leaders emphasized that the transfer agreement includes safeguards intended to protect the hospital’s longstanding public mission. Deed restrictions will require the property to remain a hospital permanently, and charity-care commitments established under the city’s stewardship will remain in place.

Curtis Richardson, mayor pro tem, called the decision a historic investment in the region’s long-term health and well-being. Commissioner Dianne Williams-Cox said the vote reflects the community’s desire to ensure high-quality healthcare remains accessible to residents across North Florida.

Hospital CEO Mark O’Bryant said negotiations between TMH and Florida State University are continuing as the organizations finalize long-term agreements governing their partnership.

Once complete, leaders from both institutions say the collaboration will establish a fully integrated academic health center designed to improve clinical care, expand medical training and drive new medical research serving patients throughout Tallahassee and the broader Big Bend region.