Grady Hospital mired in red; task force recommends way out

A task forced has released its preliminary recommendations on what it will take to turn Grady Memorial Hospital around.

Grady is metro Atlanta's only level one trauma center and is currently $120-million dollars in debt. If a financial crises forces Grady to close its doors, patients will have to travel to one of the state's other level one centers, in either Macon, Augusta or Savannah.

The Georgia Health Policy Center reports that Grady takes in more uninsured patients than any other hospital in the state.

Pete Correll co-chairs the Atlanta business group which wrote the report. He called it a "perfect storm" of events which led Grady to its current financial state, including a booming indigient population, skyrocketing health care costs and stagnant reimbursements. Correll also warned of a "patient tsunami" that would be unleashed on other area hospitals if Grady closes.

The group had several recommendations for turning Grady around. Included among the recommendations: require surrounding counties to reimburse the hospital for the cost of uninsured resident care; renegotiate with Medicare and Medicaid to pay a greater portion of patient benefits; reorganize the hospital as a 501(c)3 non-profit; bring in an outside consulting firm to oversee revamping hospital operations and sell-off some of Grady’s real estate holdings .

The task force will present its final report to the Grady board at its regularly scheduled mid-July meeting.

Grady plan blasted by critics at public hearing

Citizens concerned about moving control of Grady Memorial Hospital to a nonprofit-model raised their concerns Thursday to Grady leaders.

One key question on everyone's minds...would Grady continue its mission to treat indigent patients? The board said the nonprofit model would.

However, Amy Hasty of the group Jobs with Justice wasn't convinced.

"You know I'm glad the wording is there but it is incredibly vague. If you could tell us specifically how you are going to keep the mission and to what degree you're going to keep the mission".

Grady Authority chairwoman Pam Stevenson says the lease agreement does address how the nonprofit will continue Grady's mission.

"To preserve a mission is not vague language. You translate that into the mission that we've had for 100 years, and you can quantify where we stand today and if there are changes to that mission over a period of time".

Others questioned whether the nonprofit would cut Grady's dialysis and pharmacy services. The authority is gathering public input before finalizing the agreement.

Atlanta's Grady has been financially-strapped for some time, with a debt-load of around 55 million dollars. It's one of the region's main trauma care centers.

State House to consider helping Grady

Grady Health System in Atlanta is the biggest trauma center in the southeast, and may have the biggest bill to pay. Analysts say it needs more than $120 million before the end of the year to meet payroll.

House Speaker Glenn Richardson (R-Hiram) fears Grady's collapse could reverberate across Georgia.

"If you, like me, have been in a car crash, you will be taken to Grady," he says in a press release. "Unfortunately, Grady itself is now on life support. It would be highly irresponsible for us to let this hospital continue operating as it is currently."

Richardson has assembled a panel of lawmakers to study the problem and recommend fixes. He says they will look at all the possibilities, including "appropriating funds if that's necessary, under a contract for services to the remainder of the state."

The Georgia government does not fund Grady. Services are subsidized by Fulton and DeKalb county taxpayers, although patients come from all of Georgia's 159 counties.

More than 75 percent of patients are on Medicaid; most of the others are uninsured. Recent reports also have blamed poor management and aging infrastructure for Grady's woes.

The five state representatives appointed to the study committee are: Sharon Cooper (R-Marietta), who is a nurse; Ben Harbin (R-Evans), who chairs the House Appropriations Committee; Melvin Everson (R-Snellville), Penny Houston (R-Nashville), and Pam Stephenson (D-Atlanta), who is a Grady trustee.

A look at Grady's financial health ... by the numbers

Grady was first opened in 1892.

Its patients come primarily from five metro Atlanta counties: Clayton, Cobb, Dekalb, Fulton, and Gwinnett.

Grady sees more than 30-thousand inpatients and almost 1-million outpatients each year.

Grady trains one-quarter of the state’s doctors, and has nearly one-thousand patient beds.

In 2005, Dekalb and Fulton counties reimbursed Grady 105 million dollars as payment for the nearly 200 million in indigent patient care Grady provided that year.

Grady's current debt level stands at 120-million dollars. The hospital falls deeper in debt at the rate of 3-million dollars per day. It will take least 200-million dollars for Grady to make badly needed capital improvements.

Lawmakers hear support for Grady training program

State lawmakers studying Georgia's growing doctor shortage say Atlanta's financially troubled Grady Hospital is critical to training physicians across the state.

Researchers told the state house committee that Georgia needs more physicians to keep pace with its growing and aging population. They say Grady Hospital's residency program attracts young doctors who otherwise would not come to Georgia. Presidents of Morehouse School of Medicine and Emory's medical school say Grady is a "magnet" for doctors, and the loss of the public hospital training program would give them "heartburn." Yet local officials say Grady may close at the end of the year unless it gets more that $120 million.

State Rep. Barry Fleming, the committee chair, was listening.

"There's not a better teaching program probably in the Southeast than in Grady as far as educating doctors on how to work on patients," Fleming said during a break in the meeting. "That's why the health of Grady is vital."

Fleming says Georgia should shore up current programs, including Grady's residency training, before launching new ones. He represents Harlem, a suburb of Augusta, and supports an expansion of the Medical College of Georgia there. But eventually, Fleming says, the state will need a second public medical school at the University of Georgia in Athens.

Grady supporters bring petitions to keep Grady public

A group of Grady Hospital supporters brought petitions to the Capitol today asking that the Atlanta hospital remain public. Meanwhile state leaders vowed to help the financially strapped hospital while also funding a state-wide trauma care system.

Grady Hospital is trying to stay open for business. There is fear that if it changes management, it will no longer serve Atlanta's poor. House Speaker Glenn Richardson told business leaders in Atlanta that he is willing to support state funding, but with conditions.

"Grady's got to help themselves first. When Grady helps itself, I'm willing to jump it. But we have to do something about trauma care statewide. We gotta get on the same page."

Governor Perdue is expected to outline help for Grady in his "State of the State" address. One idea is to charge speeders more money to fund hospitals. For GPB News, I'm Susanna Capelouto at the State Capitol.

Lawmakers seek Grady audit

Two state Representatives want a closer look at the finances of troubled Grady Hospital in Atlanta. Marietta Republican Sharon Cooper and Evans Republican Ben Harbin sent a letter to other lawmakers seeking a full audit of public funds received by Grady. Grady is the state’s main trauma care hospital, but says it’s out of money and could close by the end of the year. The state legislature doesn’t have the authority to do a full audit, but the research will focus on state grants given to Grady. Lawmakers have scheduled a meeting on Grady’s future for next week.

County commissioner wants state audit of Grady

The battle over the future of Grady Hospital in Atlanta continues. A DeKalb County commissioner is asking the state to push for an indenpendent audit of the hospital to help answer questions as to how bad its financial picture is. Also at issue is the Grady relationship with Emory hospitals. A former Grady board member has accused Emory's School of Medicine of selectively taking paying patients from Grady. As one of the state's handful of level-one trauma care centers, Grady is said to be on the verge of financial collapse--perhaps by the end of this year.

Legislative Day 38 ... from the Senate

TRANSPORTATION FUNDING
Dueling legislations have created one of this session’s most contention issues, as lawmakers try to find a middle ground on funding local transportation projects. On the House side, lawmakers suggest allowing local communities to come up with a list of priority projects for the DOT. From the Senate, the proposal calls for either a county or regional voter referendum so residents can decide if a t-splost is needed for a specific project. Republican Jeff Mullis chairs the Senate Transportation Committee. He says it appears House leaders brushed aside the Senate’s concerns. “We feel the House hasn’t taken us seriously at this moment, because they put their entire language back on to our offer. Well, they’ve got to move to middle before we can agree on anything.” If the two sides can come to an agreement, Georgians will vote this fall whether or not to amend the state’s Constitution for a one cent tax to vote to fund local transportation projects.

CONTROVERSARY OVER GRADY HOSPITAL
A bill that would have prohibited vendors or competitors from serving on Grady Hospital’s governing board passed in the senate on Tuesday. It does not apply to the current board of directors, but would to any future board members. The measure also strips away any oversight committee provision, for the financially trouble hospital. Democratic Senator Vincent Fort co-chairs the Grady Coalition. Fort accused other senate leaders of backing away from earlier commitments calling for an oversight committee. “Senator Shafer had made a commitment back in January when Grady was controlled by a predominantly African American board to create an oversight committee for Grady. Unfortunately, he’s backed away from that now that the board is dominated by wealthy, white businessman.” The measure also provoked heated discussion as a last minute floor amendment was added, prohibiting Grady from performing abortions on any paying patients.

LIMITED SUNDAY LIQUOR SALES
Lawmakers voted to boost local economic development by allowing some businesses sell alcohol on Sundays. One immediate beneficiary of the measure ... the proposed Triple-A Braves stadium in Gwinnett County set to open in summer 2009. Senator Renee Unterman represents part of the county. Her floor amendment – which the Senate adopted -- allows alcohol to be sold at the stadium on Sunday. However, Unterman stopped short of endorsing a repeal of the state’s blue laws. “My bill was in no connection to Sunday sales. Unfortunately, in the House, they connected the two. And, that was against my wishes. I said that mine was single issue and I wanted it to stay a single issue.” Under the bill, operators of approved regional economic assistance projects, or REAPS will be permitted to sell alcohol for consumption on site. Projects like golf courses and conference centers. The measure does not however circumvent the power of local governments to prohibit such sales.

WATER WARS, PART DUEX
Competition at the capitol on Tuesday over who should control local water resources in light of Georgia’s on-going drought. One bill proposed by the House would prohibit local governments from imposing tighter water restrictions than those called for by the state. The other --- a Senate bill -- would give local governments the power to impose or lessen additional restrictions over state regulations if a compelling reason exists. Republican John Bulloch chairs the Senate Agriculture and Consumer Affairs Committee. He says water restrictions fail to take local differences into account. “In a lot of cases, EPD has had a one size fit all for a large area. We have a lot of counties and water authorities that have adequate water and that’s not being considered.” The bill also requires the state’s Department of Natural Resources adopt regulations relating to drought management, which must be updated every five years.

TAX MEASURE PING-PONGS
(from the Associated Press)
House Republican leaders say they've found a way to settle the debate between two dueling tax plans: Adopt them both. House Speaker Glenn Richardson unveiled new versions of the two competing plans today, saying the state could afford the 2 billion dollars that the combined cuts would slash from the state budget. Richardson's plan to eliminate the car tag tax and freeze property taxes remains largely unchanged, although the newrevisions allow only Georgia residents to enjoy the tax breaks. It also removes a tax break sought by Governor Perdue that would have eliminated the state portion of property taxes, worth about 30 dollars a household. But House leaders for the first time signed onto a separate tax break pushed by Senate leaders that reduces the state income tax over five years. Under the new version, the cuts would not start until 2011. And the tax break could not be enacted unless the bill to eliminate the car tag tax is adopted. The two cuts would cost the state 2 billion dollars when they are fully implemented in 2015. There was no immediate comment from Senate leaders and the governor, who is on a weeklong trade mission in China. But Perdue has said the cash-strapped state can't afford either one of the plans. He's pushing for more than 300 million dollars in budget cuts to keep Georgia afloat as state tax collections slow to a trickle. He's accused his fellow Republicans of playing politics with the state's fiscal health.

Senate bill would take control from Grady authority

A state senator is threatening to wrestle control of Grady Hospital from its current authority and give it to a nonprofit corporation, unless the hospital solves its financial crisis on its own.

Sen. David Shafer (R-Duluth) says he'll introduce a bill in the next session of the General Assembly to address Grady's financial woes. If the bill becomes law, it will require the Fulton-DeKalb Hospital Authority to cede day-to-day management of Grady to a nonprofit corporation. A task force also has recommended the change, and Shafer says he's trying to put the Authority's feet to the fire.

"They certainly ought to do it themselves and it's my hope that they would do it themselves," Shafer says. "But we've got to be ready to take action if they continue to drag their feet."

The bill does not provide what all concerned say Grady needs the most: money. Hospital officials say they may have to shut their doors unless they get $120 million this year. Fulton and DeKalb Counties fund the hospital's operations, even though patients come from all over the metropolitan area. Senior state officials say they will consider state funding, but only if Grady restructures its management.

Grady Hospital on verge of collapse

A report to be released today will say that Grady Memorial Hospital in Atlanta will have to close, unless its' way of doing business is fixed, and new funding is found.

Grady is one of the few level-one trauma care centers in the state. A 17-member task force drew up the report. The group found that the financial situation of the facility is worse than originally thought. The report states that without a short-term fix, Grady will not be able to meet its' payroll by year's end. It warns that a closing of Grady would cause a flood of poor patients to other metro Atlanta hospitals.

Solutions offered include forming a private, non-profit corporation to run the hospital.

Legislators question settled Grady lawsuit

Six state lawmakers want a Fulton County judge to open the records in a whistleblower lawsuit against Grady Hospital. The six include Senate President Pro Tem Eric Johnson and Georgia Senate Majority leader, Tommie Williams, according to the online news site Insider Advantage. The case involved former Grady doctor James J. Murtagh, Jr. In 2000, Murtagh accused Emory University and Grady of giving him a bad review after he accused them of conspiring to misuse federal research funds. The case was settled and the files subsequently sealed. But lawmakers say citizens have the right to know if publicly-funded Grady Hospital paid Murtagh for his silence. In recent months, mounting debt in the tens of milions has threatened to shut the dorrs to the region's only level one trauma center.

Final Grady report in: Turn hospital into non-profit

Grady Hospital's future is now officially in the hands of its governing board, the Fulton-Dekalb Hospital Authority. A task force assigned to diagnose the hospital's problems turned in their final report today.

The report recommends turning Grady into a 501-C-3 non-profit. It would essentially turn the hospital authority into a landlord, which would lease out Grady's operations to a private non-profit board.

Task force member John Parker says that if well-managed, the change would be invisible. "You're going to have the same management team there, the same benefits, but now it's in a different legal form, where hopefully it can do things it couldn't do before," said Parker.

Financially-strapped Grady is the only level I trauma medical center in the metro Atlanta area and serves many indigent patients. Its potential collapse could overwhelm other area hospitals. Now the hospital authority has to decide whether to accept this recommendation.

Grady set for non-profit control

A unanimous vote last night wrapped up months of discussion on Grady Hospital’s future in Atlanta—that future will now include management by a non-profit board. The vote by Grady’s board concluded an afternoon of spirited debate, including from critics who fear this change will threaten the mission of the hospital to serve the poor.

The new non-profit board will have a lease arrangement with the current board. Of the several conditions in the deal, one calls for a commitment by state and local business, civic and charitable leaders to raise 100 million dollars in private donations over three years. Another point of the resolution requires a written commitment from top state leaders to back increased state funding of Grady--of not less than 30-million dollars a year.

Grady is one of a handful of level-1 trauma care centers in the state.

Grady names new CEO

Embattled Grady Memorial Hospital has a new Chief Executive Officer. Today Grady's board named Michael Young to the post. Grady is Atlanta's only public hospital and one of four hospitals in Georgia that can treat the most serious traumatic injuries. It has struggled financially for years and reached a crisis point due to rising health care costs, dwindling government aid, a lack of paying customers and years of neglect.

$15M to troubled Grady

Atlanta’s troubled Grady Hospital has a financial boost from Fulton County. The Fulton County Board of Commissioners voted yesterday to provide $15-million to Grady. Grady says financial straits mean it will likely close by the end of the year. Hospital officials acknowledged the $15 million will make little difference in the hospital’s overall survival, but it will keep paychecks rolling. Closure of the hospital would mean that metro Atlanta would lose a major trauma center and teaching hospital. Thousands of poor people would have to find other emergency rooms for treatment.

Grady hospital board meets on non-profit idea

The board of Grady Health Systems today votes on the formation of a transition team to explore handing-over management of the institution to a private non-profit board. The move comes after a closed-door meeting last Wednesday between Grady board members, representatives of state government leaders, Fulton County commissioners, the business community, and African-American religious leaders.

The transition team will have 60 days to figure out how to make sure that indigent patients can continue getting the care they need under a private, non-profit board. In return, state leaders said they'll support legislation to fund a statewide trauma network, and to make other counties pay for their residents' use of Grady. Corporate leaders also agreed to raise 200-million from the philanthropic community.

Plan for Grady to be presented soon

A 125-million dollar plan to help stabilize Grady Hospital in Atlanta is expected to be submitted Tuesday to the facility’s board members.

The head of Grady's Board told the Atlanta Journal-Constitution that the key part of the plan involves a line of credit worth 100-million dollars. She told the paper a search for long-term solutions would then be pursued.

Grady is in danger of closing by the end of the year without an infusion of money. The hospital is one of a handful of level-one trauma care centers in the state. It also serves the uninsured, and is a key teaching center for Georgia doctors.

Grady Hospital Board seeks loan to stay afloat

Grady hospital board officials say they will pursue a line of credit and hold off on any changes in the way the Atlanta hospital in managed.

The hospital needs 120 million dollars to stay solvent. A taskforce had recommended that Grady turn away from a 2 county administration to an independent non profit as soon as possible.

But according to the Atlanta Business Chronicle, the hospital board will instead seek a 60 million dollar line of credit and hold off on any governing changes.

Officials say they worry that changing the way the hospital is run so quickly, could jeopardize funding from the federal indigent care trust fund.

Grady Hospital treats more indigent patients than any other hospital in Georgia.

Grady lease approved

Grady Memorial Hospital in Atlanta is one step closer to an administrative makeover. The Fulton County Commission has voted to approve a new lease agreement. It would transfer power at Grady to a nonprofit governing board and could bring millions of dollars to the cash-strapped hospital. Grady is Georgia's only Level 1 trauma care center and has threatened to close under financial crisis.