The Tallahassee City Commission has approved a Memorandum of Understanding (MOU) with Florida State University (FSU), setting the stage for the transfer of city-owned hospital assets currently leased to Tallahassee Memorial HealthCare, Inc. (TMH). The agreement outlines plans to transform the hospital into an academic health center operated by FSU Health, integrating research, clinical care, and medical education for North Florida.
Under the MOU, FSU will maintain and improve charity and indigent care services while introducing new healthcare innovations. Over the next 30 years, FSU is set to invest $109 million in recognition of citizens’ contributions to the original city-owned hospital and its assets. By 2034, FSU also plans to invest $250 million to upgrade local facilities and support clinical faculty and research.
“We are truly grateful for the City Commission’s approval of this transfer,” said FSU President Richard McCullough. “We are now poised to build a world-class academic health center that will change the landscape of healthcare in Tallahassee and beyond. This moment is the culmination of our shared commitment to discovery, care, and opportunity. I look forward to the next steps as we work together to create a healthier future for all.”
Tallahassee Mayor John Dailey described the decision as significant for local healthcare. “Today’s vote marks a historic turning point for our city,” he said. “The partnership between Florida State University and Tallahassee Memorial HealthCare will bring groundbreaking medical advances and exceptional care right to our doorstep and shape a brighter, healthier future for Tallahassee.”
Last September, FSU and TMH signed another MOU establishing their partnership framework for creating an academic health center in Tallahassee.
Mark O’Bryant, CEO of Tallahassee Memorial HealthCare, commented on recent developments: “We are encouraged by the progress between FSU and the City of Tallahassee. We look forward to continuing to finalize the terms of our partnership with FSU that will enhance patient care, serve our community, and further strengthen our region as a healthcare destination.”
Academic health centers combine patient care with medical education and research while providing specialized services not typically available at community hospitals. The planned center aims to expand specialty care options locally, improve research infrastructure, and reduce residents’ need to seek advanced treatment outside the region.
According to an initial assessment from the Office of Economic Vitality, this initiative could generate more than $3.64 billion in economic impact over three decades while creating over 900 jobs.
A third public hearing on this agreement is scheduled for March 11, 2026 at City Hall.
