Organize the South

It's nice to finally see politicians realizing the problem at Grady: there's not enough money. The state legislature will probably fall for the Chamber of Poverty (aka Chamber of Commerce) neoliberal, privatization agenda. That doesn't mean losing a valuable resource like Grady is inevitable. It means a tough fight though. This story is from today's AJC.

By CRAIG SCHNEIDER
The Atlanta Journal-Constitution
Published on: 09/05/07

The Fulton County Board of Commissioners handed over $15 million Wednesday to prop up the financially teetering Grady hospital, providing some help to a facility that could start running out of cash in about 12 weeks.

Commissioners fought their way to the decision in an almost 90-minute discussion that featured rancorous debate on how to save the hospital, impassioned speeches and a flurry of failed motions and votes. In the end they reached final agreement on a single point: They all want to save Grady.

"Take all the nonsense out, and give the people $15 million," Commissioner Bill Edwards said. And that's just what they did, stripping down vying proposals filled with conditions to a point of agreement.

The gift of $15 million comes on top of Fulton's annual funding of $84 million for the hospital. But Grady officials acknowledged that it will make little difference in the overall survival of the hospital, which officials say could start running out of money by Nov. 30.

"This gives us some breathing room," said Grady CEO Otis Story, noting the money will help provide for payroll.

The $15 million was part of a larger plan hatched several weeks ago to shore up the hospital. It also included a request for $5 million from DeKalb County, the other county involved in the running of the hospital. DeKalb has yet to act on that request, and county CEO Vernon Jones declined comment Wednesday.

Grady has also asked these two counties to back up a $100 million loan it hopes to obtain, though neither county has acted on that.

If Grady were to close, the region could lose a major trauma center and teaching hospital — and thousands of poor people who are treated at Grady each year would have to find other emergency rooms to take them.

Grady is one of the nation's oldest public hospitals, and it has lost money over the last seven years, in part because of changes to the federal Medicare and Medicaid programs and an increase in the number of patients who are poor and uninsured.

The Fulton commission appoints seven of the 10 members of the Grady board, which controls the hospital. The DeKalb commission appoints the remaining members.

Fulton commissioners were sharply divided on what should be done to save Grady.

Commissioner Tom Lowe said control of the hospital must be wrested from the existing Grady board, which he blamed for mismanagement and bad financial planning.

"This outfit down there will continue to waste money ... and put people on the payroll they don't need," Lowe said. "It's not going to be fixed by the board down there — ever."

Commissioners Lynne Riley and John Eaves favored tying the $15 million to a pledge that the Grady board would hand over control of daily operations to a nonprofit, nonpolitical corporation.

But Commissioner Emma Darnell blasted that as "extortion" and "shotgun tactics." She blamed Grady's problems on rising costs at a time of funding cuts, and she favored keeping a board of political appointees that remains "responsible to the taxpayers."

In the end, the commission narrowly approved urging the Grady board to form a committee to explore forming a nonprofit corporation.

The Grady board has hired a law firm to study the prospect of a nonprofit corporation, and the firm is expected to report back by the end of this month.