Florida Hospital in talks with site
Sanford Burnham might be repurposed
Florida Hospital is in talks with Sanford Burnham to potentially absorb and rebrand the nonprofit research institute’s facility in Lake Nona, the Orlando Sentinel has learned.
If plans are finalized, Florida Hospital would turn the facility into a cancer treatment and research center, executives told some of the institute’s employees in a meeting Friday, according to sources close to the matter who didn’t want to be identified for fear of retaliation.
The leaders of both organizations said at the meeting that they didn’t yet have a tentative agreement in place and couldn’t provide a timeline for a potential acquisition, sources say.
Neither organization would confirm the news and would only say that they have been exploring opportunities and sustainability strategies.
“We appreciate that our local stakeholders and partners recognize the value of the biomedi-
This is the first major development since last year, when Sanford Burnham leaders surprised the faculty and staff in Lake Nona with the news of plans to leave Orlando and hand off operations to UF, a plan that fell apart before the year’s end.
cal research enterprise that has been created in Medical City,” said Dr. Kristiina Vuori, president of Sanford Burnham Prebys, in a statement. “We look forward to working with them to ensure that the expertise, resources and worldwide partnerships established at Lake Nona continue to benefit the community.”
Florida Hospital spokeswoman Amy Pavuk-Gentry said in a statement that the hospital has seen “great successes as a result of our collaboration with Sanford Burnham Prebys at the Translational Research Institute for Metabolism and Diabetes. We believe Orlando can and will be a global leader in health care and biomedical research, and we continually explore opportunities to grow medical research in the region.”
Orlando Mayor Buddy Dyer told the Sentinel there have been discussions with Florida Hospital about taking over the Sanford Burnham property. He said the talks could be described as formative. But, he added, nothing has been finalized.
“There’s no deal that has been made,” he said. Dyer said that no one wants a replay of last year’s failed efforts by the University of Florida to assume the institute’s property “with the news coming out through the media.”
Employees attending Friday’s meeting were asked not to speak with the media.
This is the first major development since last year, when Sanford Burnham leaders surprised the faculty and staff in Lake Nona with the news of plans to leave Orlando and hand off operations to UF, a plan that fell apart before the year’s end.
It was more than a decade ago when the Californiabased research institute struck a deal with the state to establish a campus in Lake Nona, create 303 jobs over 10 years and boost the economy. In exchange, it received more than $350 million in local and state taxpayer funds and private investments.
The institute never reached its job creation goal. By 2016, it had created 238 jobs, according to its report to the state.
By 2015 its leaders had already decided behind closed doors that they couldn’t sustain its younger Orlando campus, because of financial losses amid the recession, declining federal research dollars and dwindling incentive funds.
Although the average salary of the institute’s employees is more than 130 percent of the county’s average private sector wage at $70,000, state officials determined last October that the institute was in breach of contract and demanded half of the incentive money — $77.6 million. The institute denied the charge.
State officials said last week they had no further updates on the proceedings.
Florida Hospital has been the most prominent partner for Sanford Burnham since its arrival. The two facilities established the Translational Research Institute near Florida Hospital Orlando’s campus, with a focus on metabolism research.
The health system was also one of the original donors that contributed incentives to entice Sanford Burnham to locate and build in Orlando more than a decade ago. Of more than $367 million in private and public donations and tax breaks, the hospital group kicked in $14 million, records show.
The health system, which is the largest health-care employer in Orange County, has been trying to establish its presence in Lake Nona’s Medical City for some time.
As early as 2008, Florida Hospital was positioned to have a stake in Lake Nona when it won approval from the Orange County Commission for zoning to allow a hospital on a 100-acre site along Boggy Creek Road. At the time, hospital officials stated, the reason for the purchase was “to be a dynamic part of the emerging Lake Nona Medical City.” A hospital hasn’t been built.
More recently, Adventist Health, the parent company of Florida Hospital, bought 67 acres at 10999 Narcoossee Road, just east of the intersection with Lake Nona Boulevard, for $8 million. The health system hasn’t discussed its plans.
And last year, the hospital tried to move into the area when the University of Central Florida College of Medicine began looking for a teaching hospital partner, but it was unsuccessful in its bid.
Acquiring the Sanford Burnham facility for cutting edge cancer research and treatments could finally open the Medical City gates to Florida Hospital.
Sources close to the matter say that the hospital is in talks with one or more academic partners, including a Florida-based comprehensive cancer center. Hospital officials didn’t share the names of those potential partners, sources said.
Meanwhile, amidst the uncertainty, faculty and staff have begun looking for opportunities elsewhere.
The most prominent departure so far has been that of Dr. Daniel Kelly, the institute’s scientific director, who accepted a job in March at the University of Pennsylvania and will leave in August.
At other levels, junior scientists lab assistants have also started to look for jobs elsewhere. It’s not clear how many people remain employed at the institute. Sanford Burnham officials pointed to the 238 count they had most recently reported.
Also unknown is whether the remaining faculty and staff will get to stay if Florida Hospital acquires the operations and puts a heavier emphasis on cancer research instead of metabolism.
And unclear is the fate of several million dollars in specialized equipment, including the Prebys Center, which houses robotic equipment for drug screening and could lose its main source of funds — the state — if Gov. Rick Scott signs the finalized budget.