Florida State University President Richard McCullough said the hospital transfer would allow for the expansion of clinical care in the Tallahassee region.
TALLAHASSEE — The Tallahassee chapter of the NAACP is suing Florida’s capital city over its recent transfer of the city-owned Tallahassee Memorial Hospital (TMH) to Florida State University, arguing that the deal shortchanges indigent patients.
The NAACP branch filed its lawsuit April 30 in the Second Judicial Circuit Court in Leon County. The complaint alleges that the transfer of the municipal assets to FSU is illegal because the agreement failed to comply with statutory requirements governing the sale of municipal hospitals and also runs afoul of requirements to ensure health care to those who are unable to pay.
The City Commission voted 3-to-2 on March 11 to transfer the hospital assets to FSU, but the lawsuit alleges that the transaction was done without complying with state regulations.
“These actions increase potential risks to the health and treatment of the indigent and other patients of the municipal hospital,” the complaint states.
An FSU spokesperson said the university does not comment on pending litigation, but a copy of the Use and Restriction Agreement between FSU and the city seems to contradict the lawsuit’s allegation about a lack of protections for indigent care.
“FSU shall ensure that the Charity Care Policy is continuously maintained as a component of the Hospital Use in a manner consistent with or more generous than the indigent care requirements set forth in the City-TMH Lease Agreement,” the April 13 document states. “... The admittance of patients may be restricted due to the shortage of available facilities or to protect the welfare of patients already admitted.”
The document also indicates that the city is under no obligation to provide financial assistance to maintain the Charity Care Policy.
The plaintiffs, including multiple Tallahassee residents, are asking the court for declarations that the proposed transfer is governed by Section 155.40 of the Florida Statutes and that the city must comply with rules governing allocation of proceeds and indigent-care safeguards. The complaint also seeks to void the transfer and requests a reimbursement of attorney fees and court costs.
FSU said in a news release last month that the transaction reflects the university’s efforts to establish an academic health center in the state’s capital.
“This milestone reflects years of partnership and a shared vision for the future of health care in our region,” FSU President Richard McCullough said in a prepared statement. “This is a major step forward for FSU Health and for expanding clinical care, research and medical education in North Florida.”
Mark O’Bryant, Tallahassee Memorial HealthCare’s CEO, said the transfer of assets would result in benefits for the community.
“This brings us one step closer to our vision of an academic health model – one that will strengthen our ability to recruit physicians, expand specialty services and continue delivering exceptional care close to home,” O’Bryant said.
The hospital will abide by deed restrictions agreed to by the city that require the property to remain a hospital site, according to FSU.
The hospital site’s FSU Health Research Center is expected to open sometime in 2026.
