City Commission Approves Transfer of City-Owned Hospital Assets Cementing the Future of FSU Health

March 11, 2026

Today, the Tallahassee City Commission approved the transfer of City of Tallahassee-owned hospital assets to Florida State University, marking a historic milestone toward expanding access to high-quality healthcare and advancing medical research and innovation in the Big Bend region.

This action by the City Commission sets in motion the transformation of the community’s hospital into FSU Health, a full academic health center. The approved transfer agreement includes an FSU investment of $1.7 billion.

“This is a milestone moment for our entire community! After more than 20 years in public service, I can honestly say this is the most important decision that I have been a part of,” Mayor John Dailey said. “The Commission’s decision to advance the agreement negotiated by City Manager Reese Goad cements the creation of an academic health center combining research, clinical care and teaching that will bring healthcare innovation and cutting-edge medical advances to residents of Tallahassee and across North Florida.”

“I am extraordinarily proud of the work accomplished over the past year and of today’s action, which lays the foundation for creating the best healthcare system possible to serve our residents for generations to come,” Mayor Pro Tem Curtis Richardson said. “What we achieved today by executing this agreement represents a historic investment in the health and well-being of our community.”

“Today, we made history! This is a transformative moment for our community and the surrounding counties that depend on Tallahassee for healthcare,” Commissioner Dianne Williams-Cox said. “We listened to the many voices throughout the community who share a desire for the highest quality care to be accessible, and today we are turning that goal into reality. Learning from our past, we are taking an active role in shaping our future, and I am beyond proud to be part of making the future of FSU Health possible and whole-heartedly celebrate our shared success.”

FSU Health is a healthcare ecosystem that combines research, clinical care and teaching to bring healthcare innovation and cutting-edge medical advances directly to patients across North Florida.

Academic health centers are integrated healthcare institutions that combine patient care, medical education and research within a university-affiliated hospital system. These institutions play a central role in advancing medical innovation, training future healthcare professionals and providing specialized medical services that may not be available at community hospitals. Typically affiliated with medical schools, research universities or teaching hospitals, academic health centers serve as regional hubs for complex and specialized care.

The creation of an academic health center in Tallahassee will bring world-class medical training, cutting-edge clinical research and expanded healthcare services to North Florida, lessening the need for Tallahassee citizens to travel for health care and providing opportunities for others outside the region to travel to Tallahassee for health care.

From its origins as a municipally established community hospital through decades of operations under a public-nonprofit model, Tallahassee’s healthcare system has undergone a steady and purposeful strategic evolution. Today’s approval of the Transfer of Assets Agreement represents the culmination of a deliberate and multi-stage public process that honors the City’s historic stewardship of Tallahassee Memorial Hospital while positioning the community for its next era of healthcare growth. Through carefully structured safeguards, enforceable deed restrictions, reconveyance protections, bondholder assurances and a defined compensation and investment framework, the agreement preserves the hospital’s public mission, charity care commitment and regional service obligations. Simultaneously, it provides meaningful and measurable value to the citizens of Tallahassee and positions the City and its broader region to compete more effectively in a rapidly changing healthcare landscape.