FSU, TMH officials make the case for control in dueling letters to city commission
Tallahassee Memorial HealthCare and Florida State University officials made dueling pitches to the City Commission ahead of a conversation about the hospital's future as city staffers study whether a sale of the hospital would be in the city's best interests.
"I am writing to express Florida State University's interest in the potential establishment of an Academic Medical Center in Tallahassee, which is one of several options included in the recent informational agenda item for the upcoming March 26 City Commission meeting," FSU President Richard McCullough wrote in a letter to commissioners that was posted late Monday afternoon.
The move sets up a likely collision course with the city's biggest hospital, whose leaders say their independence is vital in retaining "its legacy as a trusted, community-based healthcare provider." A former hospital board chair even described the move as a "hostile takeover" attempt.
Background: City to scrutinize TMH ownership, explore possible sale after request to tweak governance
McCullough, however, pointed to the university's longstanding relationship with TMH and how hundreds of students and staff are integrated into programs that "support health care in our community."
"The establishment of an academic medical center in Tallahassee would align our community with national trends and offers numerous benefits to our city," McCullough wrote.
Creating a new governance model, which presumably would place TMH under a FSU Health flag, would "enhance healthcare services, attract top-tier medical professionals and improve health outcomes for residents," McCullough said.
McCullough's pitch comes at the same time TMH is positioning itself to control its own destiny with a new governing board for the regional healthcare network and a letter asking city commissioners to consider turning over the hospital assets and land over to the non-profit that runs the hospital.
TMH makes its own pitch for ownership, 'local governance'
Hospitals leaders pressed that a sale to anyone else, including FSU, wouldn't be in the best interest of the community and surrounding regions and would "dilute local governance and operational control."
"Currently FSU's Board of Trustees is comprised of individuals from across the state," the board wrote. "As an arm of the State of Florida, FSU is governed by state-level leadership, which may not always prioritize the specific healthcare needs of our local community."
McCullough, however, wrote that the two entities are already creating a path for an academic medical center through their partnership in creating the upcoming FSU Health center on TMH's campus and the acute care hospital under the FSU Health name in Panama City.
"We are eager to explore this opportunity in greater detail and discuss how we can work together with the City of Tallahassee and TMH to bring this vision to fruition," McCullough wrote.
The university's official interest comes just days after the Tallahassee Democrat broke the news of the city's intent to explore its relationship with the hospital and potential acquisitions by private, non-profits or university interests that could transform the community hospital in the future.
TMH 'blindsided' amid a rebranding
TMH officials say they were blindsided by the agenda item, with the TMH president Mark O'Bryant saying it appeared that hospital officials were excluded from earlier conversations about the hospital between FSU and city leaders.
"That's very concerning. It feels like there's already a structure and a plan in place," he told the Democrat in an interview.
You've probably seen the news stories about the City of Tallahassee considering selling TMH's land and equipment. Now, hear the facts straight from our President & CEO, Mark O'Bryant. This is a critically important issue that could negatively affect the future of healthcare in Tallahassee indefinitely. Everyone should take a moment to listen, understand and act before the Wednesday, March 26 City Commission meeting.Now is the chance for your voice to be heard. Call City Hall at 850-891-8181. Write your commissioner. Post on social media. Please tell them TMH – your hospital for life, is not for sale.
Posted by Tallahassee Memorial HealthCare - TMH on Tuesday, March 25, 2025
TMH officials have asked the city to change its bylaws so it could create a new health system board whose members wouldn't require "city confirmation authority" to oversee the broader TMH health system and strategy. As part of that change, TMH is also developing what may be an umbrella brand for the network.
"Tallahassee Memorial HealthCare, Inc. has branded itself as "Aerris Alliance;" and it and its governing Board of Directors shall be referred to herein as "Aerris" and the "Aerris Board," respectively," the document says.
The Democrat has asked TMH officials for details on the Aeris Alliance brand.
A day after FSU announced its interest, TMH's board of directors officially put its interest in taking ownership if the city wants out.
"Should the city decide to move forward with a sale or other disposition, the TMH Board of Directors formally requests that ownership of the property and assets be transferred to TMH, aligning property ownership with operational responsibility," the board wrote.
Jeremy Matlow: Plot to 'deliver the hospital for Florida State' orchestrated by Mayor Dailey
Amid mounting concern by hospital leaders, City Manager Reese Goad and Mayor John Dailey met with hospital officials Monday morning to discuss the city agenda item that thrust this conversation into the public sphere.
Goad said he thought it was "a good meeting — productive."
"I think it's probably one of many conversations to come about the future of TMH, healthcare and Tallahassee and the region," Goad said.
In theory, he told the Democrat, if the city chose to divest itself and sell TMH to a new owner, the hospital would not have to consent to that. The hospital, however, would continue to be the operator of the property.
As of now, the city is just exploring all its options, according to Goad.
"We believe this needs full discussion, full consideration. We need to develop the questions and answers and really present that to the public for ultimate disposition."
Commissioner Jeremy Matlow has also weighed in on Facebook saying he is a "a bit perturbed of the events of the last week."
"Tallahassee Memorial Hospital is a local asset and serves a very distinct role as a community hospital," he wrote. "Changing that role or ownership is likely to be met with widespread community opposition."
He noted commissioners were also "blindsided" by the agenda item.
"While Commissioners and the hospital were kept in the dark, I learned this week that Mayor Dailey met with FSU weeks ago with a plan to "deliver the hospital for Florida State," he wrote.
"Receiving a letter from FSU on the eve of the Commission meeting, which seems to be timed to bolster the sale conversation, leads me to believe this is a hostile takeover orchestrated by the Mayor, rather than an open community conversation."
When asked if he had a response to Matlow's accusations, Dailey told a Democrat reporter that he hadn't seen the post: "I don't follow Commissioner Matlow."
When asked if he met with McCullough about a possible sale prior to the agenda item being created, Dailey didn't respond but later said "I will never apologize as the mayor of Tallahassee for seeking out information and answers to questions with parties that are of interest to business before the city."
If you go
The city commission meeting will be held Wednesday, March 26, in the City Commission Chambers, second floor, City Hall, 300 S. Adams Street. The meeting begins at 3 p.m., and public hearing begins at 6 p.m.
Local government watchdog reporter Elena Barrera can be reached at ebarrera@tallahassee.com . Follow her on X: @elenabarreraaa .
This article originally appeared on Tallahassee Democrat: FSU eyes hospital for academic medical center; TMH makes its own pitch
