Aiming to enhance accessibility and innovation in health and healthcare across Northwest Florida, Florida State University has unveiled intentions to establish an acute care hospital in Panama City Beach operating under the FSU Health banner.

Subject to sanction by the State of Florida, this initiative lays the foundation for the development of a cutting-edge medical facility that will cater to the populace of Bay and Walton counties. Bond financing for the endeavor, projected to be around $414 million, gained approval on Wednesday from the Florida Board of Governors, the governing board comprising 17 members overseeing the management and coordination of the state’s 12 public universities. Earlier the same day, the 13-member FSU Board of Trustees also granted approval for the bond financing.

The university is set to collaborate with an operator, expected to be Tallahassee Memorial HealthCare (TMH) pending authorization from the City of Tallahassee, to lease and manage the new hospital. This partnership will guarantee long-term quality performance that meets the evolving needs of the community and incorporates innovative best practices.

“The new hospital reflects our steadfast commitment to delivering outstanding service and quality healthcare to the community,” stated FSU President Richard McCullough. “We are establishing a cutting-edge facility that will address community needs, support local doctors, and focus on an exceptional patient experience, thereby improving the overall health and wellness of our residents.”

Mark O’Bryant, President & CEO of TMH, highlighted the significance of the partnership, declaring, “This collaboration with FSU signals an exciting advancement in broadening high-quality healthcare services for Panama City Beach and the surrounding areas. By merging our expertise and resources, we are ensuring this growing community has access to premier medical care, now and in the future.”

FSU has been granted about 16.5 acres of land from The St. Joe Company for the hospital’s location at 1002 North Arnold Road, situated at the intersection of Highway 79 and Philip Griffitts Senior Parkway. The new hospital will be established within the same medical district and next to the newly opened Medical Office Building, which started operations in July 2024.

The first stage of the hospital will have the capacity for up to 180 beds and will provide a wide variety of healthcare services, including emergency medicine, general surgery, and diagnostic imaging. Additionally, the agreement encompasses the establishment of specialized service lines such as cardiac care, neurology, and orthopedics.

“Access to high-quality healthcare is vital for the well-being of all residents in Northwest Florida,” remarked Jorge Gonzalez, president, CEO & chairman of The St. Joe Company. “FSU Health fulfilling a crucial need for additional healthcare options alongside educational and research opportunities for students is transformative for the region.”

A pivotal aspect of the plan is the Academic Clinical Collaboration Agreement, which will guide future clinical research and medical education initiatives at the hospital. This collaboration will foster opportunities for FSU’s graduate medical education programs and enhance the much-needed talent development of healthcare professionals in the area.

“I’m delighted to learn that FSU, in alliance with Tallahassee Memorial Hospital and The St. Joe Company, has expressed their intent to increase healthcare access in Northwest Florida with a new hospital in Panama City Beach,” said U.S. Rep. Neal Dunn, who represents Bay and 15 other counties in Florida’s 2nd Congressional District. “FSU and Tallahassee Memorial have a demonstrated history of improving healthcare outcomes within the communities they serve. This new facility marks the commencement of yet another remarkable chapter of collaboration between these entities that will be advantageous for the entire Bay County community.”

The initiative represents the next step in FSU’s long-standing dedication to enhancing healthcare in North Florida.

Key milestones include the inaugural launch of FSU Health in 2022 and the development of an academic health center on the Tallahassee Memorial HealthCare campus, set to open in 2026.

“We are honored to be an integral part of the future of this region, and we eagerly anticipate opening the doors to a new era of healthcare that will benefit families and communities for generations to come,” declared McCullough.

The construction of the new Panama City Beach hospital is expected to commence shortly, with a targeted opening date set for 2028.

About Florida State University
One of the nation’s leading public research institutions, Florida State University caters to over 44,000 students from all 50 U.S. states and in excess of 120 nations. Situated in Tallahassee, the capital of Florida, FSU offers more than 272 undergraduate, graduate, and professional programs, including medicine and law, delivered by outstanding faculty who are leaders in their respective fields. Whether Pulitzer Prize winners, Guggenheim Fellows, or members of the National Academies, FSU’s faculty inspires students to achieve their fullest potential with unmatched opportunities in the arts, sciences, and humanities. FSU’s steadfast commitment to student achievement yields some of the highest retention and graduation rates nationwide. Florida State’s welcoming campus is the oldest continuous site of higher education in the state and houses a flourishing research enterprise, the world-renowned National High Magnetic Field Laboratory, acclaimed fine and performing arts programs, an entrepreneurial spirit, and championship athletic teams.

About Tallahassee Memorial HealthCare, Inc.

Established in 1948, Tallahassee Memorial HealthCare (TMH) is a private, nonprofit community healthcare system devoted to transforming care, advancing health, and enhancing lives, with the ultimate vision of being recognized as the most engaged and supportive organization in the United States. Serving 21 counties in North Florida and South Georgia, TMH encompasses a 772-bed acute care hospital, a surgery and adult ICU center, a psychiatric hospital, several specialty care centers, four residency programs, 50 affiliated physician practices, and collaborations with Alliant Management Services, Apalachee Center, Calhoun Liberty Hospital, Capital Health Plan, Doctors’ Memorial Hospital, Florida State University College of Medicine, Big Bend Hospice, and Radiology Associates. For further details, please visit TMH.ORG.

 

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