Florida State University and Tallahassee Memorial Healthcare are working to finalize a high-stakes partnership to create an academic medical center — but this week, talks were overshadowed by controversy over whether the deal involved a push for a special hospital taxing district.
In an unusually blunt joint statement, the two institutions rejected the idea outright.
“Let us be clear: Florida State University and Tallahassee Memorial Healthcare do not support the creation of a special hospital taxing district in Leon County or anywhere else,” the statement read.
“This collaboration will enhance health care access, advance medical education, and improve health outcomes for all residents. Taxes have never been a part of our conversations, and they never will.”
The response came after days of online debate, political speculation and questions about behind-the-scenes negotiations — including claims that the civic business group Grow Tallahassee had floated a taxing district during discussions with state Rep. Allison Tant, a Democrat whose district includes parts of Tallahassee.
Grow Tallahassee denies proposing a tax
Grow Tallahassee Chair Bugra Demirel, whom Tant said raised the taxing-district concept, also issued a statement opposing the idea.
“Grow Tallahassee agrees with FSU and TMH, and opposes any additional tax burden on our residents and businesses,” Demirel said. “As part of the FSU-TMH partnership to create an academic medical center, FSU will be footing the bill on behalf of the entire community.”
Demirel said his group supports the partnership’s potential and wants leaders “to finalize the partnership and move forward together to deliver the health care system our community deserves.”
Tant, who was the first public official to sound the alarm, reiterated that she opposes any new taxing district.
“I will fight this at every turn,” she wrote on social media, adding she was relieved to learn FSU’s official position.
Two models: Tampa General vs. UF Shands
In an interview with WFSU’s Tristan Wood, Demirel expanded on how the taxing-district discussion first arose. He said he and Tant were talking through hypothetical governance models used by other academic health systems — including the Tampa General Hospital model, which does involve a taxing district created by the Legislature.
“That’s one option, and that’s how USF and Tampa General did it,” Demirel said. “The other option is the UF Health Shands model, which, in this particular case, TMH and FSU are headed to.”
Tampa General and the University of South Florida are longtime academic partners.
Demirel emphasized that Grow Tallahassee “never proposed a taxing district,” saying the group does not support new taxes and does not believe a hospital authority is appropriate because FSU “is already willing to bring in funds and resources to make this happen.”
He also said the rumors stem from a broader lack of coordination among stakeholders.
“In my opinion, there are a lot of cooks on the TMH side,” Demirel told WFSU, pointing to recent disagreements over the involvement of Florida A&M University and Tallahassee State College. He argued the FSU side has been more unified in its approach.
High stakes for health care — and Tallahassee’s economy
City leaders and state officials have said the creation of an academic medical center could reshape Tallahassee’s health care landscape, expand specialized care, and spur new economic development tied to research, workforce training, and biotech.
Demirel told WFSU he believes the project could boost young-professional retention, citing the economic ripple effects seen around UF Health Shands in Gainesville.
For now, all three major players — FSU, TMH, and Grow Tallahassee — are publicly aligned on at least one point: the academic medical center should move forward without any new taxes attached.
Information from WFSU's Tristan Wood was used in this report.
