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Florida Hospital withdraws bid to operate Sanford Burnham: 5 things to know

Orlando-based Florida Hospital reportedly pulled its bid Tuesday to acquire La Jolla, Calif.-based Sanford Burnham Prebys Medical Discovery Institute's research facility in Orlando, according to the Orlando Sentinel.

Here are five things to know about Florida Hospital's decision.

1. The hospital, which is part of the Altamonte Springs, Fla.-based Adventist Health System, announced its decision in a Jan. 30 letter to Orange County Mayor Teresa Jacobs, Orlando Mayor Buddy Dyer and the head of the land development company that constructed the Sanford Burnham Prebys Medical Discovery Institute at Lake Nona in Orlando.

"Though our proposal has merit, we have no interest in being part of a process where winning requires that major community partners seek to defeat each other," Daryl Tol, senior executive vice president of Adventist Health and president and CEO of Florida Hospital and Adventist Health's central Florida division, wrote in the letter. "This type of process will be lengthy and difficult and require focus and resources from all sides better used in the interest of the community."

2. Orlando-based University of Central Florida and Florida Hospital had been vying to take over the research facility. Ms. Jacobs requested both institutions present their proposals during a meeting with the Orange County Commission Jan. 23. During the meeting, Ms. Jacobs told commissioners she was "surprised" to learn Florida Hospital and Sanford Burnham had entered into exclusive negotiations regarding the Florida facility.

3. UCF said in a statement to the Orlando Sentinel Tuesday, "If asked … we are prepared to move forward with our proposal for a university-based cancer research and treatment center in Medical City. If given the opportunity, we look forward to partnering with our community to expand cancer research."

4. Florida Hospital had been in talks with Sanford Burnham regarding the facility for nearly a year before UCF placed a bid for the site in 2017, according to the report.

5. Orange County commissioners did not issue a decision during the meeting earlier this month, but indicated they were leaning toward UCF's proposal or considering opening the bidding process to other interested parties. However, Ms. Jacobs said commissioners are making headway on next steps for the research facility.

"We've already started to organize our process forward, and have reached out to our funding partners, [Mr.] Dyer at the City of Orlando and Sesh Thakkar at Lake Nona Land Company, to determine whether there is unanimous agreement on the next steps," Ms. Jacobs said.

To read the full report, click here.

More articles on transactions and valuations:
Cleveland Clinic to take over Florida hospital
Ardent close to finalizing operating agreement with Texas health system
Kaufman Hall: 5 notable healthcare transactions in 2017

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