On October 7, 2024, the board of directors of Fort Myers-based Lee Health voted to convert the system into a private nonprofit, marking a significant shift for the longstanding public healthcare provider. The 9-1 vote is a critical step in a process that now awaits final approval from the Lee County Board of County Commissioners. This privatization would have wide-reaching implications for the healthcare system and its ability to serve patients both within and outside of Lee County.
The Impact of Hurricane Milton
The transition process faced an unexpected delay due to Hurricane Milton, which led to the cancellation of an October 8 special meeting by the Lee County Board of Commissioners. An emergency order extended the October 11 deadline to finalize the privatization, demonstrating that even amidst unforeseen challenges, the move toward privatization is a top priority.
Larry Antonucci, MD, President and CEO of Lee Health, expressed his gratitude for the flexibility shown by the commissioners and state government, emphasizing the importance of continuing this vital work for the future of the community.
A Shift Decades in the Making
Although the decision to privatize Lee Health may seem sudden, the board has been considering this move for months. Initially a private system for 50 years, Lee Health transitioned to a public entity in 1968, operating under the oversight of its own board of directors as an independent healthcare district. However, as the healthcare landscape in Florida evolves, the restrictions of being a public nonprofit have become more pronounced.
One of the primary limitations has been Lee Health’s inability to operate outside Lee County’s borders. As a private nonprofit, Lee Health would have greater flexibility, allowing it to expand its reach and create partnerships beyond its current geographic constraints. This shift could generate an additional $1 billion in net patient revenue over the next decade, providing the resources needed for long-term sustainability and growth.
Adapting to a Changing Healthcare Landscape
The repeal of Florida’s certificate of need (CON) law, which previously regulated the establishment of new healthcare facilities, is another factor contributing to the decision. Without the CON restrictions, healthcare systems are now freer to expand and form joint ventures. Dr. Antonucci explained that as a public entity, Lee Health has been limited in its ability to pursue these opportunities, making privatization an appealing alternative.
In an interview with Becker’s earlier this year, Dr. Antonucci acknowledged that the decision to pursue privatization had been difficult, but necessary given the changing healthcare environment. He highlighted the potential for regional growth and partnerships, stating, “The ability to work outside of our county borders and operate more regionally, and the ability to do more joint ventures and partnerships with physicians and others” are key advantages that privatization would offer.
What This Means for Lee Health and the Community
Lee Health operates four acute-care hospitals, two specialty hospitals, and a range of outpatient centers and clinics. Privatization will give the system more autonomy in how it allocates resources and expands its services. This could lead to improved healthcare access for residents of Southwest Florida and beyond, while also allowing the system to remain competitive in an increasingly dynamic healthcare market.
While the county board’s final approval is still pending, the support from both the board of directors and community leaders suggests that Lee Health’s transformation into a private nonprofit is on track to become a reality.
For residents of Lee County and surrounding areas, this transition may bring about enhanced services, expanded access to care, and a stronger, more resilient healthcare system capable of meeting the region’s growing needs.
Krone Weidler, Founder & Principal
Cadre Healthcare Realty Advisors
1095 SE 177th Place, Suite 404-M14
Summerfield, FL 34491
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