Fulton Commission Refuses Grady $99M in Funding

By D.L. BENNETT - Atlanta Journal-Constitution - 1/9/08

Commissioners vote to give $80M, plus $5M —Hospital says it's still not enough

Fulton County Commissioners today refused Grady Memorial Hospital's request for $99.2 million in 2008 —cash hospital officials said was desperately needed to keep the ailing hospital afloat.

Instead, the board agreed to $80 million, plus $5 million in reserve funding if Grady meets certain management goals.

The amount matches what the county paid Grady in 2006 before approving $20 million in emergency funding last year.

Grady officials warned that any cut could have dire consequences to a public hospital already facing huge debt, problems with cash flow and challenges with patient care. Officials said patient care could suffer, nurses not be hired and vendor payments delayed.

"There is no plan B," said Dr. Christopher Edwards, a Grady board member. "There is no more cutting we can do. We are at bare bones here. At the end of the day, if Fulton County decides to withhold, we are done."

The decision came after more than two hours of dramatic debate as commissioners debated Grady's financial condition and its patient care.

"I'm not going to leave here feeling guilty we haven't done all we could do," said Commissioner Bill Edwards. "Fulton County cannot be the stopgap for Grady. I want to do what I can. I want to do more than I can. But I don't see an end to this."

The issue split the board 4-3 with Chairman John Eaves and Commissioners Nancy Boxill and Tom Lowe refusing to cut Grady's request.

"Fulton County has a responsibility to do everything we can to make sure health care is provided to all citizens, those who pay and those who cannot pay," Boxill said.

Commissioners Bill Edwards, Emma Darnell, Robb Pitts and Lynne Riley all said Fulton had already done enough. They said they were concerned about the hospital's questionable finances and wondered why Fulton should continue to pay more when no other entity has done so.
The Grady decision began what is likely to be a daylong debate over the county's 2008 budget.
Commissioners need to slash more than $30 million in proposed spending to balance the 2008 budget because the original $690 million spending plan called for a $33 million property tax hike. Commissioners rejected the tax hike last week.

The Grady decision saves the county $15 million in proposed spending, leaving just $18 million more to make up for the loss in revenue from rejecting the tax increase.