Tampa General Hospital will assume operations of DeSoto Memorial Hospital under a 49-year lease agreement that includes an option to purchase.
Under the plan, Tampa General will pay $10 a month in rent, with a commitment to invest at least $49 million into the 49-bed facility, ensuring expanded services and long-term stability for DeSoto County’s only hospital.
The DeSoto Memorial Hospital Board unanimously approved the proposal Monday during a special public meeting in Arcadia, selecting TGH over competing offers from AdventHealth and NorthStar Hospitals.
The decision followed a monthslong request-for-proposal process that included public hearings and presentations from multiple organizations interested in partnering with the rural hospital.
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The lease agreement includes TGH’s plans to add a heliport, expand service lines and integrate academic medicine in partnership with the University of South Florida. The investment will be spread across infrastructure, technology and staffing enhancements to modernize the hospital and improve patient access.
“We’re honored to have been selected by DeSoto Memorial Hospital’s Board and are excited about the opportunity to support the future of care in DeSoto County,” TGH said in a Facebook post. “Our proposal includes investing in the facility, expanding service lines, growing the team, and creating a helicopter station to provide rapid access to advanced care at our main campus.”
DeSoto Memorial serves a largely agricultural county of nearly 37,000 residents about 90 miles southeast of Tampa.
Issues facing rural hospitals
Rural hospitals like DeSoto Memorial face unique financial challenges, including rising operational costs, difficulty recruiting physicians and nurses, aging infrastructure, and a high proportions of patients covered by Medicare and Medicaid.
Affiliating with a larger health system, experts say, provides economies of scale, access to specialists, and resources for capital investments that smaller facilities often cannot achieve alone.
“Keeping local hospitals open isn’t just about health care — it’s about the local economy and community stability,” said Florida Hospital Association president and CEO Mary Mayhew during an October interview with WUSF's "Florida Matters: Live and Local."
“When hospitals close, it affects access to care and local jobs, and rural communities bear the brunt of that impact.”
ALSO READ: DeSoto County’s only hospital considers sale or merger as Medicaid cuts loom
At a July board meeting, DeSoto Memorial CEO Vince Sica said the board carefully weighed all options, emphasizing that protecting local jobs and retaining quality staff were key priorities. TGH is expected to retain all employees in good standing as well as senior management.
“This hospital cannot close,” said board member Robert Heine during the July meeting when the board initiated the search for a partner. “Keeping local hospitals open isn’t just about health care — it’s about the local economy and community stability.”
Detailed negotiations between both sides remain, as well as a board meeting to hear public comment on Monday's decision. The state's Agency for Health Care Administration must also approve the transaction.
The AdventHealth proposal involved purchasing the hospital for about $52 million. The option from NorthStar Hospitals was to handle management services with an undisclosed capital committment. Both, however, said they would be open to a lease arrangement.
Tampa General adds to footprint
TGH's move adds to the nonprofit's growing statewide footprint.
The hospital system formed TGH North when it purchased three hospitals in Hernando and Citrus counties from Bravara Health in 2023. The deal also included a freestanding emergency room in Citrus Hills, two ambulatory surgery centers and 10 primary care and specialty facilities.
In October, the hospital announced plans to acquire a 53-acre property adjacent to emergency center. in Citrus County. Plans for the site include a hospital, medical office building and helipad.
And this week, Tampa General announced plans for a new Ybor City medical campus.
TGH previously entered a management/operational support agreement with Lakeside Medical Center in Palm Beach County, providing administrative leadership, operational management and strategic support. It also lists a network of outpatient facilities in Palm Beach County.
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In 2021, Tampa General began a joint venture with Mass General Brigham and plans to jointly open a radiation oncology center in Palm Beach Gardens next year. TGH also purchased Tower Radiology's 21 imaging centers in the Tampa Bay and Palm Beach areas.
In 2020, Tampa General strengthened its academic relationship with USF by leasing 25,000 square feet of space across three floors in the 13-story USF Health Morsani College of Medicine.
