Fort Myers, Fla.-based Lee Health's board of directors voted Oct. 7 to convert to a private nonprofit health system, News-Press reported Oct. 14.
The board voted 9-1 on the conversion. The Lee County Board of County Commissioners must approve it before it is finalized, News-Press reported.
An Oct. 8 commissioners special meeting was canceled because of Hurricane Milton and will be rescheduled to approve the health system's privatization. The Oct. 11 deadline to finalize the process was also extended due to the hurricane. The county board is expected to approve the conversion, News-Press reported.
The health system board of directors voted 9-1 in support of conversion in June. The commissioners voted Aug. 20 to publish a draft of the mission agreement detailing the assets and liabilities involved in the transition.
In September 2023, Lee Health first said it was evaluating the benefits of converting from a public to private nonprofit system. It was a private system for its first 50 years, and began operating as an independent healthcare district in 1968, created by the Florida legislature and operated by its own board of directors.
Its current structure restricts the system from operating outside of Lee County. Privatization would allow for expansion outside of the county and would lead to $1 billion more net patient revenue over the next decade, according to the system.
Lee Health President and CEO Larry Antonucci, MD, told Becker's in March that considering conversion had been a difficult choice.
"We've operated as a public nonprofit for more than 60 years. And as we look at the landscape changing here in Florida, especially with repeal of certificate of need, there are limitations that are placed on us as a public entity. In addition to that, our public status here doesn't allow us taxing authority, which is very unusual for a public," Dr. Antonucci said. "So as a result, we're looking at the potential change in the landscape and the opportunity that could present itself if we were to convert to a private nonprofit. Things like 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."
Lee Health includes four acute-care hospitals and two speciality hospitals, as well as outpatient centers and clinics.