'Sky's the limit': FSU economic impact center stage at chamber conference
- Florida State University officials highlighted the school's significant economic impact on the region.
- FSU's operating budget has grown to $3.2 billion, with projections to reach $5 billion in the next decade.
- The university's research, including at the National High Magnetic Field Laboratory, is a key driver of its influence.
- A major focus for future growth is the expansion of FSU Health and its partnership with Tallahassee Memorial Healthcare.
Florida State University wasted no time flexing the power of the Garnet and Gold before a standing room workshop center during a discussion on the school's economic impact in the region.
The numbers were staggering: 400 buildings across 1,600 acres, mostly in Leon County, more than 44,000 students, and 18,000 employees in various departments ($1.2 billion in payroll per year) and a current operating budget that's swelled to $3.2 billion, up from $1.2 billion more than a decade ago. Not to mention many millions in federal grants awarded to advanced the university's research.
"The MagLab is so important because it brings in over 2,000 users every year from around the world, doing really important experiments that help move imaging and energy and really the types of quantum physics and quantum technologies that are going to really transform the world," Patterson said.
"We're probably going to see some really incredible changes in healthcare and the relationship between FSU and TMH, with incredibly strong partnerships with (Florida A&M University) and (Tallahassee State College) as well," said Kyle Clark, vice president for finance and administration at FSU," adding he predicts the operating budget will increase to $5 billion.
Clark also said there would be big changes at the university, more students living on campus, more research buildings, and more student services.
Jonathan Fozard, vice president of FSU's Information Technology Services, challenged the group to think about "how amazing healthcare can be, how amazing the impact of FSU can be."
He said: The sky's the limit.
‘Just the beginning’: Chamber, city leaders bet big on FSU Health
Part of that vision, as presented in great detail through layered talking points, high-production videos and workshops, comes with the rollout of an FSU Health enterprise — which is designed to "bring researchers, educators, and clinical partners under one umbrella to transform health and healthcare in Florida" from a flagship academic medical center at Tallahassee Memorial HealthCare.
Throughout the weekend, healthcare was touted as the next big industry and economic engine for Tallahassee.
Moving beyond the merger's controversial origin story, FSU President Richard McCullough and TMH President and CEO Mark O'Bryant stood together and pitched the possibilities at one workshop.
Under terms of the sale, the university will pay the city $109 million for their hospital land and assets over a 30-year period, while FSU will invest $100 million in existing hospital facilities and another $150 million on the newly branded FSU Health. The university also has "aspirational plans" to invest $1.7 billion in healthcare improvements, contingent upon legislative appropriations and state and federal grants.
McCullough said the community-based model for hospitals is tough because of population challenges.
"We're dedicated to spending $350 million into the Tallahassee hospital. We're building an over $400 million hospital in Panama City Beach," he said. "We had plans to make investments that could be in the buildings, into healthcare in this region ... when you have the opportunity to change and help people, it's imperative that you do it."
O'Bryant said that when it comes to change, there's always some level of confusion. He said the hospital was never against FSU being the landlord or ultimately becoming the dominant brand over TMH.
"We just wanted to make sure that got right," he said. "I think a lot of people, in the process of the back and forth, felt that there was this strong adversarial relationship."
Final deal between TMH and FSU could be weeks away
Leaders and physicians at both FSU and TMH highlighted the benefits of the acquisition and grandiose goals for making the hospital one of the best in the nation for overall care.
But before that can happen FSU and TMH still need to finalize a deal, hammering out more than a dozen issues ranging from branding to logistics to governance.
Following the packed workshop, both O'Bryant and McCullough spoke with the Tallahassee Democrat and said they're close to a final deal that would one day rebrand TMH as FSU Health.
"Academic health centers aren't light-switch strategies," O'Bryant said. "You don't flip a switch and become one. They evolve over time. You heard some of the things we're working on now are already progressing."
Together, he said the institutions are merging some of their IT functions and applying for additional residency and fellowship programs to bring training to more doctors, adding "all of this is just step by step by step."
In addition, a new Health Research and Collaboration Building on TMH's campus plans to open the first three floors in October. It will include a designated area for family residency practice, simulation labs, a wet lab and clinical research spaces.
"It's not like one of those things and all of a sudden we are an academic health center," O'Bryant said. "This is a highly, highly complex deal. There are so many pieces, you have to have them all together. It's all a fabric ... I would say there's not a projection, but I would say we're talking weeks."
He said negotiators are working to develop a plan "10, 20, 30, 40, 50 years from now."
"So it's not just getting it done now," he said. "We want to make sure we get it right."
McCullough said that once a final decision is reached, the university will evaluate the overall facility and identify necessary infrastructure investments, implement immediate hiring initiatives and develop long-term strategic plans for growth.
He said the university has access to more resources, including both state and federal funding that would be used to improve the hospital's ability to do more and serve more residents.
One example addresses healthcare deserts in rural counties. FSU's College of Medicine was awarded $19.2 million last week, the most of all applicants, with focuses on food insecurity, behavioral health, preventive care, workforce development and telehealth. McCullough said FSU wouldn't have received the federal grant without the TMH partnership and acquisition of the assets.
"Without the partnership, we wouldn't be able to access that," McCullough said. "So that's the power that we're going to bring, and that's just the beginning."
