Florida State University is moving forward with a major expansion of its health care initiatives through plans to build a $414 million hospital in Panama City Beach. The new facility, part of the university’s FSU Health brand, will address growing health care demands in Bay and Walton counties and serve as a cornerstone of medical innovation, education, and access in Northwest Florida.
The hospital will be constructed on a 16.5-acre site donated by The St. Joe Company at the intersection of Highway 79 and Philip Griffitts Senior Parkway. Bond financing for the project was approved by both the FSU Board of Trustees and the Florida Board of Governors in March. Construction is expected to begin soon, with the facility opening its doors by 2028.
“This new hospital is a testament to our unwavering commitment to providing exceptional service and quality care to the community,” said 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.”
The project is expected to be operated by Tallahassee Memorial HealthCare (TMH), pending approval by the City of Tallahassee. The partnership ensures clinical leadership from a health system that already serves 21 counties in North Florida and South Georgia. TMH President and CEO Mark O’Bryant called the collaboration “an exciting step forward in expanding high-quality health care services for Panama City Beach and the surrounding region.”
A regional hub for medical care and training
The first phase of the new hospital will accommodate up to 180 beds and include services such as emergency medicine, general surgery, and diagnostic imaging. Plans also include specialized service lines in cardiac care, neurology, and orthopedics, aimed at addressing regional health needs. The new hospital will sit adjacent to the FSU Health Medical Office Building, which opened in 2024, forming a medical district that supports both patient care and physician collaboration.
Beyond treatment, the hospital will serve as an educational and research hub through an Academic Clinical Collaboration Agreement. This will enable FSU to expand its graduate medical education and clinical research programs, helping train a new generation of physicians and allied health professionals. In Bay County alone, the U.S. Census Bureau reports a population growth of nearly 15% since 2010, underscoring the demand for enhanced medical infrastructure and a stronger health workforce.
“Access to quality health care is essential for the well-being of all residents in Northwest Florida,” said Jorge Gonzalez, president and CEO of The St. Joe Company. “FSU Health is meeting a critical need for more health care options, in tandem with education and research opportunities for students.”
Building on a legacy of health care expansion
The announcement follows FSU’s broader investment in health and medical research. In 2022, the university launched FSU Health and broke ground on an academic health center on the Tallahassee Memorial HealthCare campus, set to open in 2026. The Panama City Beach hospital represents the next phase in the university’s long-term strategy to bolster health care access and innovation throughout North Florida.
“This facility represents the beginning of another outstanding chapter of collaboration between FSU, TMH, and The St. Joe Company that will benefit the entire Bay County community,” said U.S. Representative Neal Dunn.
Florida State University, which serves more than 44,000 students from all 50 U.S. states and over 120 countries, continues to expand its reach in both academic excellence and public impact. With this new hospital, FSU further positions itself as a regional leader in both higher education and health care.
