- The City of Tallahassee is set to review their lease with Tallahassee Memorial Healthcare at the City Commission meeting Wednesday.
- President and CEO of TMH said this agenda item came as a "surprise to them." They want to change their governance model but are concerned about a change in ownership.
- The City said they are reviewing this lease following a TMH request to change their governance model. They said they want to consider what their role in the future of the healthcare industry looks like.
- Watch the video to hear from the City and TMH and to find out more about when these discussions will take place.
UPDATE:
TMH posted this video on YouTube Tuesday afternoon. For the full response click here.
ORIGINAL:
On Wednesday, March 26th, The City of Tallahassee will discuss the ownership and operation of Tallahassee Memorial Healthcare.
In the agenda—the City Manager's Office states the hospital recently requested the City restructure the hospital's governance model and establish a new Health System Board. Under the proposal, the new board would oversee the broader TMH health system, while the existing TMH Board would continue to manage the hospital's day-to-day operations.
Right now, The City of Tallahassee owns the hospital's land, buildings, and assets, while TMH operates the hospital as an independent nonprofit healthcare system under a long-term lease agreement. The city owns 75 acres of land and 2 million square feet of building space used by TMH as the lessee.
On Monday, March 24th, The Board of Tallahassee Memorial Healthcare, Inc. responded to the agenda saying in part quote,
"We want to be clear that TMH, Inc. has not requested that the City consider divesting itself of ownership of the leased Hospital property. In fact, the City has not discussed that concept with TMH, Inc., and the first that we heard of this suggestion, which implies a potential sale to a third party, was when we read it in the Agenda Document on Thursday."
The agenda also addresses that TMH has expanded its specialty care services, trauma capabilities, and regional footprint, aligning with national trends where independent hospitals integrate with larger health systems to ensure financial stability and service expansion.
The City Manager's Office states the hospital's evolution includes its partnership with Florida State University through FSU Health. FSU Health is supported by a $125 million appropriation from the Florida Legislature to advance medical education, research, and clinical care. The agenda states FSU’s role at TMH extends beyond education, as it is now involved in developing new healthcare facilities alongside TMH through a Transformation Committee.
On Monday, March 24th, Florida State's President sent a letter to Tallahassee's Mayor and City Commissioners saying in part quote,
" As you are aware, FSU has a longstanding relationship with TMH in Tallahassee. Hundreds of our students, faculty and staff are integrated into programs that support health care in our community, and this will only grow as we further enhance the FSU Health initiative....The establishment of an Academic Medical Center in Tallahassee would align our community with national trends and offers numerous benefits to our city. FSU would be committed to developing an Academic Medical Center in Tallahassee that puts the community first and preserves what we all value regarding the community aspects of TMH."
The City Manager's Office says due to the proposal, commissioners will discuss whether or not the City's ownership of THM remains in the City's long-term interest. Commissioners will explore the feasibility and potential advantages of a possible sale of the property, considering all available options and approaches.
The meeting begins at 3:00 p.m. at City Hall.
For The Board of Tallahassee Memorial Healthcare, Inc. full response click here.
To read Florida State President's full letter click here.
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