By: Amy Farnum-Patronis, FSU Communications
With the goal of improving health and healthcare access and innovation in northwestern Florida, Florida State University has announced plans to build an acute care hospital in Panama City Beach under the health name of FSU.
With Florida approval pending, the plan paves the way for building state-of-the-art medical facilities to serve residents in Bay and Walton counties. The project’s bond loans are estimated at around $414 million and were approved Wednesday by the Florida Governor’s Committee. This is a 17-member board of directors responsible for the operation and coordination of 12 public universities in the state. The 13-person FSU board approved bond financing at a meeting earlier in the day.
The university will partner with operators expected to become Tallahassee Memorial Healthcare (TMH), which has been pending approval from the City of Tallahassee, to lease and operate the new hospital. This arrangement ensures long-term quality performance consistent with increasing community needs and innovative best practices.
“The new hospital is a testament to our unwavering commitment to providing exceptional service and quality care to our community,” said FSU President Richard McCullough. “We are creating cutting-edge facilities that meet the needs of our community, support local doctors, prioritize excellent patient experiences and enhance the overall health and well-being of our residents.”
Mark Oblinto, president and CEO of TMH, highlighted the importance of the partnership, saying, “This collaboration with FSU represents an exciting step in expanding quality healthcare services in Panama City Beach and its surrounding areas. By combining expertise and resources, this growing community will have access to the highest levels of healthcare, both now and in the future.”
FSU received approximately 16.5 acres of land donated by St. Joe Company to the hospital site at 1002 North Arnold Road, 1002 North Arnold Road, at the intersection of Highway 79 and Philip Griffitts Senior Parkway. The new hospital is located in the same medical district that opened in July 2024 and is adjacent to the new medical office building.
The first stage of the hospital can accommodate up to 180 beds and offers a wide range of healthcare services, including emergency care, general surgery, and diagnostic imaging. Additionally, the agreement outlines the development of specialized service lines, such as cardiac care, neurology, and orthopedics.
“We are pleased to announce that we are committed to providing a range of services to our customers,” said Jorge Gonzalez, CEO and Chairman of St. Joe Company. “It is transformative for the region to meet the critical needs of more healthcare options alongside student education and research opportunities.”
A key component of the plan is the Academic Clinical Cooperation Agreement, which administers future clinical research and medical education programs in hospitals. This partnership will create opportunities for FSU’s Graduate Medical Education Initiative and improve the much-needed talent development of health professionals in the region.
“We are excited to hear that in collaboration with Tallahassee Memorial Hospital and St. Joe Company, FSU has announced its intention to expand access to healthcare in northwest Florida at its new hospital in Panama City Beach.” “FSU and the Tallahassee Memorial have a track record of improving health outcomes across the communities they serve. The new facility marks the beginning of another prominent chapter in collaboration between these organizations that benefit the entire Bay County community.”
The project is the next stage in FSU’s long-standing commitment to improving healthcare in North Florida.
Notable milestones include the launch of FSU Health in 2022 and the construction of the Academic Health Center at the Tallahassee Memorial Healthcare Campus, which is scheduled to open in 2026.
“We are proud to be part of the future of the region and look forward to opening the door to a new era of healthcare that benefits families and communities for future generations,” McCullough said.
Construction of the new Panama City Beach Hospital is expected to begin soon, with a targeted opening day in 2028.
About Florida State University
Florida State University, one of the top public research universities in the United States, serves more than 44,000 students in all 50 US states and over 120 countries. Located in Tallahassee, Florida’s capital, FSU offers over 272 faculties, alumni and specialized programs, including medicine and law, taught by exceptional faculty leaders in their field. Whether they are Pulitzer Prize winners, Guggenheim Fellows, or members of the National Academy, FSU faculty members inspire students to reach their full potential with unparalleled opportunities in the arts, science and humanities. FSU’s unwavering commitment to student success creates the highest retention and graduation rates in the country. Florida’s cozy campus is home to state and growing research companies, the world-class national high magnetic field research lab, the blessed performing arts program, entrepreneurial culture, and the oldest continuing site of higher education.
Tallahassee Memorial Healthcare, Inc. About
Founded in 1948, Tallahassee Memorial Healthcare (TMH) is a private, nonprofit community healthcare system that promises to transform care, promote health and improve lives with the ultimate vision of being known as America’s most enthusiastic and supportive organization. Serving 21 counties in North Florida and South Georgia, TMH consists of a partnership with the 772 bed acute care hospital, surgery and adult ICU centers, psychiatric hospitals, multiple specialized care centers, four residency programs, 50 affiliated physician practices, Appalachie Management Services, Appalachie Center, Calachie Liberty Host Pick, Medical Plans, Medical Plans, Calachie Liberty Plans, Calachie Liberty Host Pick, and Appalachie Centers. and radiology peers. For more information, please visit tmh.org.
