TALLAHASSEE, Fla. (WCTV) – After hours on Thursday night, the Tallahassee Branch of the NAACP and several Tallahassee residents sued the city, seeking to void the sale of what used to be the capital city\u2019s municipal hospital.<\/p>\n
The plaintiffs allege that Tallahassee Memorial Healthcare would be operating without a valid license if a new lease isn\u2019t signed between TMH and Florida State University, after the city transferred the hospital\u2019s assets last month.<\/p>\n
FSU and TMH have been negotiating 17 points over a new lease that would officially create \u201cFSU Health.\u201d Whether state or local appointees makeup a majority of the board has remained a major sticking point.<\/p>\n
\u201cThe City\u2019s March 11, 2026, action places, at risk, the Medicare\/Medicaid provider agreements under which TMH operates, as well as related provider agreements. These agreements are linked to TMH\u2019s license to operate the hospital,\u201d wrote Jack McLean, the lawyer for the NAACP and himself a former mayor of the capital city.<\/p>\n
Previously, McLean said<\/a> the transfer agreement \u201cdid not protect poor people.\u201d<\/p>\n \u201cThe NAACP members are affected by the City\u2019s March 11, 2026, illegal transfer of the hospital assets to Florida State University because the City failed to comply with the statutory \u201cinability to pay\u201d healthcare provision and the healthcare economic development trust fund protections of Section 155.40, Florida Statutes,” McLean wrote in the lawsuit.<\/p>\n An FSU spokesperson said there is a use and restriction agreement between the City and FSU that says charity care must be maintained as a requirement for hospital use.<\/p>\n \u201cFSU 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,\u201d that use and restriction agreement reads.<\/p>\n More Tallahassee News<\/b><\/p>\n The plaintiffs asked a judge to issue an order to \u201cpreliminarily and\/or permanently enjoining the City from proceeding to closing on the proposed transfer of the hospital assets unless and until the City fully complies with (the law),\u201d McLean wrote.<\/p>\n The potential creation of FSU Health has been seen as a major victory for the majority of the city commission, including Mayor John Dailey.<\/p>\n In exchange for buying the hospital, FSU agreed to pay the city $109 million paid over 30 years on top of infrastructure investments and a commitment to care for the poor.<\/p>\n In the end, the city and FSU want to create an academic health center<\/a>, considered a step above a municipal hospital because of access to funding and the ability to recruit specialist doctors.<\/p>\n This story will be updated as we learn more.<\/p>\n To keep up with the latest news as it develops, follow WCTV on Facebook<\/a>, Instagram<\/a>, Bluesky <\/a>and X<\/a> (Twitter<\/a>).<\/p>\n Have a news tip or see an error that needs attention? Write to us here<\/a>. Please include the article\u2019s headline in your message.<\/p>\n Be the first to see all the biggest headlines by downloading the WCTV News app. Click here<\/a> to get started.<\/p>\n Copyright 2026 WCTV. All rights reserved.<\/p>\n