Florida State University has announced plans to build a new acute care hospital in Panama City Beach under its FSU Health banner, pending approval by the state.

The project is backed by $414 million in bond financing, which received approval from both the Florida Board of Governors and the FSU Board of Trustees last week.

The hospital will be operated by a third-party partner, with Tallahassee Memorial HealthCare (TMH) expected to take on the role, contingent upon local approval. The university and TMH have a history of collaboration, including a forthcoming academic health center on TMH’s Tallahassee campus set to open in 2026.
The proposed facility would be constructed on a 16.5-acre site donated by The St. Joe Company at 1002 North Arnold Road, near Highway 79.

The first phase of the Panama City Beach facility will include up to 180 beds and offer services such as emergency care, general surgery, and diagnostic imaging. Plans also call for the development of specialty programs in cardiology, neurology, and orthopedics. The hospital will be located adjacent to a medical office building that opened in July 2024.

A key element of the initiative is an academic clinical collaboration agreement, which will provide a framework for clinical research and education. The partnership is intended to support FSU’s graduate medical education efforts and workforce development in the region.

“This collaboration with FSU represents an exciting step forward in expanding high-quality health care services for Panama City Beach and the surrounding region,” said TMH president and CEO Mark O’Bryant.

Construction is expected to begin soon, with the hospital slated to open in 2028.

Florida State launched its FSU Health initiative in 2022, marking a broader institutional push to expand healthcare access and training across North Florida.

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