Construction is underway in Panama City Beach on an acute care hospital, the result of a transformative partnership between Florida State University, Tallahassee Memorial HealthCare and the St. Joe Company.
The $414-million facility, to be known as FSU Health, will be located on an existing health care campus the St. Joe Company developed through a similar partnership with FSU and TMH.
The new hospital facility, expected to be completed and in operation by the end of 2027, will provide a range of inpatient services, including an emergency center, cardiology and general surgery.
The FSU Health hospital is being described by the three partners as a “critical piece of medical infrastructure” that will help ease significant shortages of health care professionals and rapid population growth in Northwest Florida.
TMH will lease and operate the hospital from the St. Joe Company.
“The new hospital is a testament to our unwavering commitment to providing exceptional service and quality care to the community,” says FSU President Richard McCullough.
“We are creating a state-of-the-art facility that will meet the community’s needs, support local physicians, and prioritize an outstanding patient experience, enhancing the overall health and well-being of our residents.”
The FSU Health hospital is being built on 16.5 acres of land donated by St. Joe and located adjacent to the new Medical Office Building that opened in 2024.
TMH President and CEO Mark O’Bryant says the collaboration with FSU “represents an exciting step forward in expanding high-quality health care services for Panama City Beach and the surrounding region.
“By combining our expertise and resources, we are ensuring this growing community has access to top-tier medical care, both now and in the future.”
Founded in 1948, Tallahassee Memorial HealthCare is a 772-bed acute care hospital that offers a wide range of specialized health care as well as a psychiatric hospital and four residency programs.
The first phase of the Panama City Beach hospital will have the capacity to accommodate up to 180 beds and will offer health care services that include emergency medicine, general surgery and diagnostic imaging.
Moreover, the partnership agreement outlines the future development of additional specialized service lines such as cardiac care, neurology and orthopedics.
“FSU Health meeting a critical need for more health care options in tandem with education and research opportunities for students is transformative for the region,” says Jorge Gonzalez, president, CEO and chairman of the St. Joe Company.
Another important element of the project is the Academic Clinical Collaboration Agreement which will govern future clinical research and medical education programs at the hospital.
What’s more, the partnership will create new opportunities and enhance FSU’s graduate medical education initiatives program.
The three-way partnership also has attracted praise from U.S. Rep. Neal Dunn, R-Panama City.
“FSU and Tallahassee Memorial have a proven track record of improving health care outcomes across the communities they serve,” says Dunn, who represents Bay and 15 other counties in Florida’s 2nd Congressional District. “This new facility represents the beginning of another outstanding chapter of collaboration between these organizations that will benefit the entire Bay County community.”