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Florida State University and Tallahassee Memorial HealthCare have come to an agreement that will essentially transition the hospital into a new academic medical center.
In a joint statement, FSU President Richard McCullough and TMH CEO Mark O’Bryant said the partnership will “provide the opportunity to establish the hospital as a true quaternary center – expanding services, extending our reach, generating jobs, and fueling regional growth, all while preserving it as a community-focused hospital.”
They added they expect the partnership to elevate the quality of healthcare in the community, as well as expand pathways for education and research.
WHAT'S THE IMPACT
The idea of transforming TMH into an Academic Health Center has been under discussion for more than a decade, the organizations said. The TMH board of directors first outlined the vision in its 2008 strategic plan, and the hospital has since added multiple residency programs in internal medicine, general surgery and psychiatry.
The partnership comes on the back of the 2022 launch of the FSU Health Research Center, which kicked off with a $125 million appropriation from the Florida legislature to expand care access across the region.
The 140,000-square-foot building, expected to open in 2026, will house clinical research space, a family residency practice, laboratories, and other facilities designed to connect research and patient care.
Under the agreement, FSU and TMH will work with the city of Tallahassee on the transfer of the hospital assets to FSU, including the 75-acre property, 2-million-square-foot hospital building and related assets. It is anticipated that FSU will then lease the assets to TMH under a new 40-year lease and operating agreement.
TMH will remain the licensed operator of the hospital, preserving its independent, tax-exempt status, while collaborating with FSU through research, branding, academic and clinical agreements, the organizations said.
THE LARGER TREND
The hospital will transition its brand to FSU Health. The hospital’s board will continue to set strategy, approve the budget and make decisions, though the board composition will now have FSU representation. The hospital will continue to operate under its existing management, and employees will remain TMH employees, the organizations said.
There is no shift to state employment, and day-to-day hospital operations will not change, they said.
Patients will continue to see their current doctors, with new specialists and services added over time. FSU Health will maintain TMH’s existing charity care policy for uninsured and underinsured patients.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.