Tallahassee-based Florida State University and Tallahassee Memorial HealthCare’s proposed partnership has the potential for “substantial positive” long-term impact on the health system, Moody’s said.
The university and health system on Sept. 16 signed an agreement that will transform the hospital into an academic medical center. Under the agreement, both parties will work with the city to transfer the hospital’s assets to FSU. The university is then expected to lease the assets to Tallahassee Memorial under a 40-year lease and operating agreement.
Moody’s said in a Sept. 23 report that over the long term, the partnership will enable Tallahassee Memorial to “significantly expand the scope of services it provides, attract new patients and expand medical training.” The credit impact on FSU will be minimal given its scale, but Moody’s said the partnership will enable the university to position itself as an academic medical system in the Northwest Florida market.
“Transforming TMH into an academic health center will increase the complexity of care it provides, in turn enhancing its reputation and increasing patient volume,” the ratings agency said.
Additional definitive agreements regarding the partnership must be signed in the months ahead.
