Florida State University announces plan to build ‘FSU Health’ hospital in Panama City Beach

 

Excited to announce plans to build a new FSU Health hospital in Panama City Beach! This facility will support local physicians, prioritize patient experience, and enhance community health. Looking forward to a new era of health care that will benefit families and communities for… pic.twitter.com/cZhxZ8LxIP

— FSU President Richard McCullough (@PresMcCullough) March 26, 2025

Florida State University announces plan to build ‘FSU Health’ hospital in Panama City Beach

With the goal of improving access and innovation in health and health care in Northwest Florida, Florida State University has announced plans to build an acute care hospital in Panama City Beach under the FSU Health name.

Pending approval by the State of Florida, the plan paves the way to construct a state-of-the-art medical facility that will serve the residents of Bay and Walton counties. Bond financing for the project, estimated to be approximately $414 million, was approved Wednesday by the Florida Board of Governors, the 17-member board responsible for the operation and coordination of the state’s 12 public universities. The 13-member FSU Board of Trustees approved the bond financing in a meeting earlier in the day.

The university will partner with an operator, anticipated to be Tallahassee Memorial HealthCare (TMH) pending approval by the City of Tallahassee, to lease and operate the new hospital. This arrangement will ensure long-term quality performance that aligns with growing community needs and innovative best practices.

“The new hospital is a testament to our unwavering commitment to providing exceptional service and quality care to the community,” FSU President Richard McCullough said. “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.”

TMH President & CEO Mark O’Bryant underscored the importance of the partnership, stating, “This 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.”

FSU has received approximately 16.5 acres of land donated by The St. Joe Company for the hospital’s site at 1002 North Arnold Road at the intersection of Highway 79 and Philip Griffitts Senior Parkway. The new hospital will be located in the same medical district and adjacent to the new Medical Office Building which opened in July 2024.

The first phase of the hospital can accommodate up to 180 beds and will offer a broad range of health care services, including emergency medicine, general surgery, and diagnostic imaging. In addition, the agreement outlines the development of specialized service lines such as cardiac care, neurology, and orthopedics.

“Access to quality health care is essential for the well-being of all residents in Northwest Florida,” said Jorge Gonzalez, president, CEO & chairman of The St. Joe Company. “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.”

A key component of the plan is the Academic Clinical Collaboration Agreement, which will govern future clinical research and medical education programs at the hospital. This partnership will create opportunities for FSU’s graduate medical education initiatives and improve the much-needed talent development of health care professionals in the region.

“I’m thrilled to hear that FSU, in collaboration with Tallahassee Memorial Hospital and The St. Joe Company, has announced their intention to expand access to health care in Northwest Florida with a new hospital in Panama City Beach,” said U.S. Rep. Neal Dunn, who represents Bay and 15 other counties in Florida’s 2nd Congressional District. “FSU and Tallahassee Memorial have a proven track record of improving health care outcomes across the communities they serve. This new facility represents the beginning of another outstanding chapter of collaboration between these organizations that will benefit the entire Bay County community.”

The project is the next phase in FSU’s longstanding commitment to improving health care in North Florida.

Notable milestones include the launch of FSU Health in 2022 and construction of an academic health center on the Tallahassee Memorial HealthCare campus, which is set to open in 2026.

“We are proud to be part of this region’s future, and we look forward to opening the doors to a new era of health care that will benefit families and communities for generations to come,” McCullough said.

The construction of the new Panama City Beach hospital is set to begin soon, with a targeted opening date in 2028.