LEE HEALTH Dr. Larry Antonucci

In a special meeting on Oct. 28, the Lee County Board of County Commissioners voted to privatize Lee Health while approving a mission agreement.

The move, referred to by Lee Health as the “conversion to a community-focused nonprofit organization,” will take away the public’s ability to vote on the board members of the Lee Health Special District Board of Directors and it also will transfer assets into the new entity.

Officials said the conversation will not have a negative impact on patient care but will bring new opportunities to Lee County’s largest healthcare system.

“Patients can expect the very same level of reliable, quality healthcare they have come to expect from Lee Health today, tomorrow, next month, and next year,” Lee Health President and Chief Executive Officer Dr. Larry Antonucci said. “This change gives us the opportunity to provide additional access to care, bring in new clinical and business opportunities for providers, and expand healthcare options for our community. Converting to a community-focused nonprofit is not just about governance; it’s about ensuring a sustainable, high-quality healthcare system that serves the diverse needs of the community now and in the future.”

The members of the elected board currently serving will have the option of remaining in their seats for the new nonprofit entity, Lee Health System Inc., which became effective on Nov. 1.

“The current board members will remain in place through the transition,” Lee Health spokesperson Jaclyn Bevis said. “The board of directors will then work through a process to repopulate and be self-perpetuating, possibly through a governance committee or something similar. They will seek talent from around the community and grow through similar processes of many other nonprofit board of directors.”

The board had previously voted to pursue the path of privatizing from a publicly-overseen nonprofit to a private nonprofit. The organization has always been nonprofit.

Lee Health Board Chair Donna Clarke, a former state representative, said the mission agreement will reinforce the commitment of Lee Health to treat patients “regardless of their ability to pay.” She said the privatization will allow Lee Health to “compete effectively,” while continuing “our critical safety net mission.”

Lee County resident Steve Maxwell expressed skepticism of the decision and gathered 100 signatures regarding the vote by the county commission to approve the agreement with Lee Health. He said he reached out to the county attorney’s office for an explanation of the new agreement but did not receive a response. Maxwell said his family worked for Lee Health for more than 35 years.

“Hopefully the public will know what’s going on behind closed doors. We are losing the idea of a public hospital. Remember, we were always nonprofit,” he said.

The votes allow for the conversion of the health system from a public/special district of government to a community-focused nonprofit and clears the path for Lee Health to finalize the conversion through the complete transfer of assets and liabilities of Lee Health to the successor community-focused nonprofit entity, Lee Health System Inc.

Changes to Lee Health’s Enabling Act in 2023 allowed the board of directors to evaluate if conversion to a community-focused nonprofit was in the best interest of Lee County residents. Following the course prescribed by the legislation, the board commissioned an independent study, engaged expert, third-party counsel, collaborated with federal, state and local governments and held multiple work sessions, community town halls and public workshop meetings.

“We appreciate the important work done by the Lee County Board of County Commissioners in developing and approving the mission agreement,” Clarke said. “With broad community engagement, Lee Health is now poised to complete the process of becoming a community-focused nonprofit. Providing quality healthcare to everyone in our community is our fundamental responsibility and we are committed to carrying that mission forward.”

The vote by the county commission took place with few questions by any of the commissioners for county staff or Lee Health representatives. Following approval of the mission agreement, the commissioners also voted to approve the Industrial Development Agency’s re-issuance of Lee Health bonds not to exceed $850 million. The re-issuance of the assigned indebtedness ends Lee Health’s ability to issue tax exempt debt directly.