John Dailey, Tally City Manager are taking local government dysfunction to a whole new level with TMH debacle

Tallahassee Memorial HealthCare.

Tallahassee city government is proving once again that it is dysfunctional, and some leaders may have set a new low during a raucous City Commission meeting that put the city’s ineptitude on full display.

And I say that fully aware that this is a city where a few recent Mayors have been criminally charged, with one sentenced to five years in prison.

Current Mayor John Dailey, along with his City Manager — perhaps better described as henchman — Reese Goad, are responding to reasonable attempts by Tallahassee Memorial Hospital (TMH) to improve operations with what can be fairly be called a temper tantrum.

At issue is a request from TMH to create a new Governing Board to allow for it to expand regionally, outside of Tallahassee. That prompted Dailey and Goad to add an informational item to the City Commission agenda evaluating “whether continued city ownership remains in the city’s long-term interest,” according to the Tallahassee Democrat.

That in turn sparked concern that the city would attempt to sell TMH, possibly to Florida State University to operate under an academic health system.

The addition came as a shock, with none of the City Commissioners or the CEO of TMH being notified that this conversation was coming. Considering that TMH is the single largest private sector employer in Tallahassee, with $1 billion in annual revenue, the cloak-and-dagger approach represents — and I’m putting this kindly — a significant lapse in judgment.

Currently, the city owns the land the hospital is located on, and its assets. TMH, which operates as an independent nonprofit, pays the city a $1 per year lease.

To be clear, TMH has said it would like to partner with FSU, but selling the hospital doesn’t guarantee such a partnership. Instead, the move could place the regional health center under the state’s purview, a possibility that prompted major backlash at Wednesday’s meeting.

There were some sane voices in leadership. Commissioners Jack Porter and Jeremy Matlow both signaled support for the city maintaining hospital ownership, and they rightly (and more diplomatically than might have been necessary) complained about the secrecy with which the discussion was scheduled.

Commissioners Dianne Williams-Cox and Curtis Richardson, while expressing dismay about the tone of the debate, appeared to stand firmly with a locally owned, locally governed hospital, with Richardson saying he could not “imagine a healthcare system that is not locally run, owned and operated.”  It’s clear four of the five commissioners have grave concerns about a hospital owned by the state.

What could have been a productive conversation about improving health care access in Tallahassee, and expanding TMH in a way that creates the most good for the most people, instead turned into a showdown at the not-so-OK-Corral. Goad appeared out of his depth in defending the agenda item, and Dailey was clearly struggling to maintain the moral high ground in what came off more like a whiny counterattack on a hospital leadership team that never really even attacked.

Among the changes TMH is seeking are new branding and a new name, Aerris Alliance, as well as new facilities outside city limits. Speaking to the Tallahassee Democrat, Dailey said the hospital was “asking for a lot.”

That may well be, and perhaps a conversation is in order. But Dailey’s blindsiding of the City Commission, the hospital and Tallahassee residents specifically included a call for staff to “explore the feasibility and potential advantages of a possible sale.”

Anyone who knows anything about business — in any industry — understands that volatility and uncertainty breed bad outcomes. This is no different. There was no need to take a “the sky is falling” approach, and every reason to celebrate TMH’s success. The hospital in 2023 was ranked just outside of the top 10 hospitals in Florida, and earned 10 “high performing” ratings in specialty care.

Dailey should take notice. Already hundreds of stakeholders were buzzing about the recent drama at the 5th Annual Commercial Real Estate Update held at the Moon in Tallahassee Monday. While leaders at the event tried to keep conversations focused on industry trends, it was the TMH debacle that dominated the more mingling discussions, according to the Tallahassee Democrat, which noted that several professionals also said they felt blindsided by the city’s consideration of a sale.

Whatever happens, transparency needs to take priority. And in that process, egos need to take a back seat to community health care access. And with a lot of things like this, we’re all staying tuned as more drama is likely on the way.