Florida Board of Governors Approves TMH Asset Transfer to FSU, Extends President McCullough's Contract

The agreement will expand academic medicine, specialty care, and research in North Florida under FSU Health.

Mar. 26, 2026 at 10:40pm

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The Florida Board of Governors has approved Florida State University's (FSU) authority to enter into a long-term agreement with the City of Tallahassee to transfer city-owned Tallahassee Memorial HealthCare (TMH) hospital assets to the university. This move is part of a broader $1.7 billion, 30-year framework between the city and FSU aimed at developing an academic health center under FSU Health. Separately, the Board of Governors also approved a three-year contract extension for FSU President Richard McCullough, extending his term to 2029.

Why it matters

The transfer of TMH assets to FSU will allow the university to expand its academic medicine, specialty care, and research capabilities in North Florida, strengthening patient care and growing the region's medical education and research capacity. McCullough's contract extension signals continuity of leadership for FSU as it pursues these healthcare initiatives.

The details

Under the agreement, TMH will continue to operate the hospital under an amended and restated 40-year lease, while FSU assumes ownership of the assets. FSU will pay the city $109 million over 30 years in annual payments of about $3.63 million, without interest. Additionally, FSU has committed to invest $100 million in property improvements and $150 million in clinical faculty, lab resources, and research and academic operations through the end of 2034.

  • On March 26, 2026, the Florida Board of Governors approved the asset transfer and McCullough's contract extension.
  • The Tallahassee City Commission approved the transfer as part of the broader $1.7 billion, 30-year framework about two weeks prior.

The players

Florida State University (FSU)

A public research university located in Tallahassee, Florida, that is expanding its academic medicine, specialty care, and research capabilities through the acquisition of Tallahassee Memorial HealthCare assets.

Tallahassee Memorial HealthCare (TMH)

A city-owned hospital that will continue to operate under an amended 40-year lease agreement with FSU, which is acquiring the hospital's assets.

Richard McCullough

The president of Florida State University since August 2021, who has been a leading figure in the university's expansion of research and healthcare initiatives, including FSU Health.

Florida Board of Governors

The governing body of the State University System of Florida, which approved FSU's authority to enter the asset transfer agreement and extended President McCullough's contract.

Tallahassee City Commission

The local government body that approved the transfer of TMH assets to FSU as part of the broader $1.7 billion, 30-year framework between the city and the university.

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What they’re saying

“It's been the honor of a lifetime, and I'm humbled to be the leader of Florida State University. We have a lot of momentum. We're doing things at a very high level, and we won't rest until we improve every single day.”

— Richard McCullough, President, Florida State University

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This agreement between the City of Tallahassee and Florida State University represents a significant expansion of FSU's academic medicine, specialty care, and research capabilities in North Florida, with the potential to strengthen patient care and grow the region's medical education and research capacity. The contract extension for President McCullough also signals continuity of leadership as the university pursues these healthcare initiatives.