In a December 1st Medicaid Watch Report on State Medicaid and Health Cuts and Expansions, by Thomas P. McCormack, Grady is referred to as “Georgia's Safety Net.”
Concerns are expressed because of the $250 Million short fall which the indigent care of primarily Fulton & DeKalb Counties.Both Fulton and DeKalb Counties were asked for an additional $20 million. Fulton gave and additional $15 million and the DeKalb County and the State may offer an additional $5 million each.
Where is the $200 million promised by business leaders if Grady were to be privatized?
Promises to provide funding to continue Grady Memorial Hospital's indigent care services have not been kept. Who will pay the difference between what is needed and what is available?Grady's Chief Financial Officer thinks that the patients that used to benefit from free services, because they are indigent, should pay for the services themselves!According to a memorandum from the Grady Coalition, “Mike Ayers plans to ask for Board approval on January 5 to begin to require Fulton and DeKalb patients who earn between 126 and 200% of the federal poverty income to pay 40% of the cost of their care (up to 25% of annual income).
This means, for example, that a single person earning $13,001 per year before taxes, could be charged as much as $3250 a year, and a single person with a $26,000 income could be charged as much as $6500. At present, Fulton and DeKalb patients with incomes below 250% of the federal poverty guidelines receive free care.”
The memorandum continued... “Coalition has met and unanimously agreed to stand against the Grady Health System administration's proposal to cut thousands of low-income patients off the rolls of those receiving free care.
The Grady Coalition believes that implementing this proposal will jeopardize the health of thousands of patients. Many patients will not seek care due to the charges, resulting in suffering and death.
Showing posts with label Grady Hospital Saga. Show all posts
Showing posts with label Grady Hospital Saga. Show all posts
Friday, December 19, 2008
Tuesday, May 20, 2008
Privatization of Grady Hospital Commences Despite Unmet Conditions
By Jonathan Springston, Senior Staff Writer, Atlanta Progressive News (5/19/08)
(APN) ATLANTA – The Fulton-DeKalb Hospital Authority (FDHA) officially transferred operations of the Grady Health System to the new 501(c)(3), the Grady Memorial Hospital Corporation (GMHC), on Monday, May 19, 2008.
The lease will commence on May 20, 2008, and all Grady employees will transfer under the control of the GMHC with their current jobs and salaries and the GMHC will be responsible for the operations of the health system.
However, the FDHA inexplicably moved forward without a specification from the State of Georgia regarding the amount of trauma funding Grady will receive, despite an April 7, 2008, letter, in which FDHA Chairwoman Pam Stephenson said such specification would be a precondition to the transfer.
In the April 7 letter to the GMHC, Stephenson wrote, "I hereby execute the lease on behalf of the [FDHA] subject to the condition that clarification…be received by the [FDHA] regarding the amount and level of funds available to Grady Memorial Hospital for fiscal years 2008 and 2009."
"Such clarification satisfactory to the [FDHA] shall be required prior to the acceptance of a commencement certificate under the lease by the [FDHA]," she concluded.
But Stephenson, who also serves as Grady CEO and GMHC Vice Chair, told Atlanta Progressive News on Monday that the FDHA "decided to move forward" without knowing how much of the $58 million Grady would receive.
The $58 million was appropriated for the 2008 fiscal year, so the money has to be divided no later than June 30, Stephenson told APN.
She appeared confident Grady would know how much it is going to get and receive that amount on or before June 30, but offered no explanation for why the lease was moving forward despite her previous statements.
This is not the first time the conditions surrounding the privatization of Grady Hospital have shifted or simply disappeared.
As previously reported by Atlanta Progressive News, it was stipulated in the original FDHA resolution leading to the formation of the GMHC that numerous state legislators and officials would need to sign letters promising Grady funding. That condition vanished when the FDHA and other parties voted on the lease.
Grady still faces a number of issues in the near future, namely figuring out how to obtain more funding for its Level I trauma center, the only such hospital in north Georgia.
The Georgia General Assembly failed to pass legislation this Session that would have pumped millions of annual dollars into all of Georgia’s trauma hospitals, including Grady.
Lawmakers did succeed in amending the fiscal year 2008 budget to include a one-time payment of $58 million to be shared by all of Georgia’s trauma hospitals.
The Trauma Care Network Commission, a State committee charged with determining how much of this $58 million each trauma hospital in Georgia is to receive, canceled its May 15, 2008, meeting for unknown reasons, APN learned Monday.
That Commission was supposed to determine how the money was to be divided at that meeting.
As a result, the lease will take effect without Grady knowing how much of the $58 million it will receive.
Over the coming months, both Boards will continue to work with lawmakers to obtain continued trauma funding, Stephenson said.
APN SEEKS GMHC’S TAX-EXEMPT APPLICATION
APN delivered a written request Monday to Grady legal counsel and registered agent, Timothy Jefferson, requesting to inspect the GMHC's application to the IRS seeking recognition of tax-exempt status.
Federal law requires a tax-exempt organization to provide any member of the public access to their IRS recognition application for inspection on that same business day, unless extenuating circumstances exist, in which cases the organization must provide it on the next business day.
APN previously requested the application months ago and was told at that time it did not exist. Now that the application was approved, APN has made several phonecalls to the GMHC to identify the person who had access to the document.
APN requested an appointment to view the documents under federal law; however, Jefferson insisted he would treat the request as an Open Records Act request under Georgia law, because he said the document did not exist in physical form and he needed time to print it out.
APN expects to be able to view this document later this week and will report on its findings.
If not, APN is prepared to take further steps. APN let the GMHC know that a corporation which does not comply with the law can be exposed to extensive fines from the IRS.
PRIVATIZED GRADY APPEARS TO MOVE FORWARD
"Tomorrow begins a new chapter in Grady’s history," A.D. "Pete" Correll, Chairman of the GMHC, said in a press release.
"The [GMHC] has a singular focus - to preserve Grady’s historic mission as a safety-net hospital for this region by getting Grady the funding it needs," he added. "The first infusion is already on its way. And in the weeks and months ahead, we will be calling on the broader community to do its part to rally around this critical resource we all depend on."
Correll appeared Monday during the regular meeting of the FDHA as a “special guest” and said the Robert W. Woodruff Foundation would deposit $50 million in the form of Coca-Cola stock into the Community Foundation for Greater Atlanta on May 20, 2008.
The $50 million is the first of several installments of $200 million promised by the Woodruff Foundation to be doled out over four years for capital improvements.
The GMHC has also pledged to raise an additional $100 million over four years for capital improvements.
"It’s been a long journey…but we’ve reached the goal line," Correll said Monday. "We have given this hospital a chance. We have given this hospital a future."
GRADY CEO SEARCH
Stephenson has served as Interim CEO at Grady since January 2008 after officials fired Otis Story for unknown reasons.
Story filed a lawsuit against the FDHA two weeks ago in Fulton County Superior Court in which he asserts Stephenson had him fired so she could take his job, The Atlanta Journal-Constitution newspaper (AJC) reported May 12, 2008.
The AJC obtained a dismissal letter from Stephenson to Story that claims Story did not provide good leadership and made decisions without getting approval from the FDHA.
Story is seeking $1.8 million in severance pay, a $60,000 signing bonus, and unspecified punitive damages, according to the AJC.
Meanwhile, critics contend Stephenson has a conflict of interest by serving in three posts at Grady: CEO, FDHA Chair, and GMHC Vice Chair.
A Search Committee has spoken to about 30 candidates for the permanent CEO position and hopes to hire one by the end of June, Correll said last week.
Stephenson has said publicly that while she is interested in staying on as CEO, she will not make a formal announcement on whether she has applied for the post.
Correll is scheduled to speak with reporters May 20 in his downtown office about the transfer. The GMHC will hold its first meeting as the Grady Health System operator on June 2, 2008.
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News. He may be reached at jonathan@atlantaprogressivenews.com
Wednesday, April 16, 2008
Grady Coalition Looks to Future, Vows to Keep Fighting
By Jonathan Springston, Senior Staff Writer, APN (March 04, 2008)
(APN) ATLANTA – Even though the transfer of power between the Fulton-DeKalb Hospital Authority (FDHA) and the new Grady Memorial Hospital Corporation (GMHC) may appear to be a done deal, members of the Grady Coalition say they are going to keep fighting for Grady Hospital, its patients, and its workers.
"We are marathon runners and we’re not going to disappear," Rev. Timothy McDonald, pastor of the First Iconium Baptist Church and leading figure in the Grady Coalition, said Thursday night, February 28, 2008.
About 50 citizens attended a Town Hall Meeting held by the Coalition Thursday night at Grady Hospital’s Steiner Auditorium to discuss what’s next in the fight to keep Grady alive and accountable to the public."We have to monitor them once we nail them down," State Sen. Vincent Fort (D-Atlanta) said of whoever will be the new Board Members of GMHC, which the FDHA and others could name soon.
Now that Fulton and DeKalb Counties have consented to the lease agreement transferring power from the FDHA to the GMHC, the Grady Coalition is turning its attention to make sure business leaders follow through on delivery of millions of dollars in funds to Grady that have allegedly been verbally promised in secret, and that State leaders follow through on possible funding which have raised as a possibility.
Upon execution of the lease, business leaders have allegedly promised to deliver to Grady $50 million followed by $150 million over the next three years. In addition, they are said to have promised to undertake a "best efforts" campaign to raise another $100 million over three years.
Many in attendance Thursday doubt anyone will follow through on delivering these funds. "You won’t see $50 million in any lump sum at any time," Jack Jersawitz said.
Fort outlined three "pots" of money the Georgia General Assembly is either considering expanding, revising, or creating this session. First, Gov. Sonny Perdue has recommended budgeting $53 million for a Statewide Trauma Network with $7 million of that for Grady. Fort said the network really needs $180 million. Second, the State Legislature is considering revising the Medicaid reimbursement formula so that Grady could receive an additional $7 or $8 million per year. Third, the Indigent Care Trust Fund could receive an additional $5 or $6 million.
Overall, Fort said Grady could receive between $22 and $40 million from the State in addition to what has been budgeted for this year. But he noted the State cut $60 million from Grady last year and even if Grady receives new funds from the State, it could still leave Grady between $15 and $25 million short of what it needs from the State.
"This is like getting robbed and then going back and asking back for what’s yours," Fort said. Fort introduced legislation this week that would levy a statewide half-cent sales tax. Those funds would be used to funds all public hospitals in Georgia.
"I don’t like to beg," Fort said Thursday. "I don’t want to do this every year." As much as Grady needs the money, the Coalition emphasized the need to protect workers and patients by holding the new 501(c)(3) accountable.
"We cannot allow the patients…to suffer because of greed, corruption, and a takeover," McDonald said.
"People should not lose something in this transfer," Nancy Lenk of American Federation of State, County, and Municipal Employees, Local 1644, a union that represents Grady workers, said.
"Privatization means often that work is contracted out." "We have to continue as a community to put our arms around Grady workers," she added.
"It boils down to who is on that board," Dr. Neal Schulman said. "If it’s only filled with yes people, then that is a great, great tragedy."
(APN) ATLANTA – Even though the transfer of power between the Fulton-DeKalb Hospital Authority (FDHA) and the new Grady Memorial Hospital Corporation (GMHC) may appear to be a done deal, members of the Grady Coalition say they are going to keep fighting for Grady Hospital, its patients, and its workers.
"We are marathon runners and we’re not going to disappear," Rev. Timothy McDonald, pastor of the First Iconium Baptist Church and leading figure in the Grady Coalition, said Thursday night, February 28, 2008.
About 50 citizens attended a Town Hall Meeting held by the Coalition Thursday night at Grady Hospital’s Steiner Auditorium to discuss what’s next in the fight to keep Grady alive and accountable to the public."We have to monitor them once we nail them down," State Sen. Vincent Fort (D-Atlanta) said of whoever will be the new Board Members of GMHC, which the FDHA and others could name soon.
Now that Fulton and DeKalb Counties have consented to the lease agreement transferring power from the FDHA to the GMHC, the Grady Coalition is turning its attention to make sure business leaders follow through on delivery of millions of dollars in funds to Grady that have allegedly been verbally promised in secret, and that State leaders follow through on possible funding which have raised as a possibility.
Upon execution of the lease, business leaders have allegedly promised to deliver to Grady $50 million followed by $150 million over the next three years. In addition, they are said to have promised to undertake a "best efforts" campaign to raise another $100 million over three years.
Many in attendance Thursday doubt anyone will follow through on delivering these funds. "You won’t see $50 million in any lump sum at any time," Jack Jersawitz said.
Fort outlined three "pots" of money the Georgia General Assembly is either considering expanding, revising, or creating this session. First, Gov. Sonny Perdue has recommended budgeting $53 million for a Statewide Trauma Network with $7 million of that for Grady. Fort said the network really needs $180 million. Second, the State Legislature is considering revising the Medicaid reimbursement formula so that Grady could receive an additional $7 or $8 million per year. Third, the Indigent Care Trust Fund could receive an additional $5 or $6 million.
Overall, Fort said Grady could receive between $22 and $40 million from the State in addition to what has been budgeted for this year. But he noted the State cut $60 million from Grady last year and even if Grady receives new funds from the State, it could still leave Grady between $15 and $25 million short of what it needs from the State.
"This is like getting robbed and then going back and asking back for what’s yours," Fort said. Fort introduced legislation this week that would levy a statewide half-cent sales tax. Those funds would be used to funds all public hospitals in Georgia.
"I don’t like to beg," Fort said Thursday. "I don’t want to do this every year." As much as Grady needs the money, the Coalition emphasized the need to protect workers and patients by holding the new 501(c)(3) accountable.
"We cannot allow the patients…to suffer because of greed, corruption, and a takeover," McDonald said.
"People should not lose something in this transfer," Nancy Lenk of American Federation of State, County, and Municipal Employees, Local 1644, a union that represents Grady workers, said.
"Privatization means often that work is contracted out." "We have to continue as a community to put our arms around Grady workers," she added.
"It boils down to who is on that board," Dr. Neal Schulman said. "If it’s only filled with yes people, then that is a great, great tragedy."
Fulton County Approves Two Grady Hospital Resolutions
By Jonathan Springston, Senior Staff Writer, APN (March 15, 2008)
(APN) ATLANTA – The Fulton County Board of Commissioners approved a pair of resolutions Wednesday, March 05, 2008, concerning funding and ethics at Grady Memorial Hospital, which as Atlanta Progressive News has previously reported, has been targeted for privatization by the business community.
The first resolution called on the Fulton-DeKalb Hospital Authority (FDHA) to not reduce or eliminate any provisions of the funding agreement between the FDHA and the Grady Memorial Hospital Corporation (GMHC), the nonprofit corporation created by FDHA to possibly take over management of the hospital system.
Section 3 of the funding agreement states before the execution of the lease agreement, the GMHC must obtain a written commitment from the business community that they will provide $200 million in capital improvements over four years to Grady Hospital.
The first payment should be $50 million, according to the funding agreement, to be paid immediately into escrow or in cash on or before execution.
It also calls on the business community to provide a written commitment it will undertake a "good faith, best efforts" campaign to raise an additional $100 million, beyond the $200 million, for capital improvements over three years.
But Section 5 of the funding agreement gives the FDHA the discretion to permit the GMHC to obtain less than the amounts of funds promised in Section 3 of the agreement.
Fulton’s resolution, authored by Commissioner Emma Darnell and Vice Chairman William "Bill" Edwards, asks the FDHA not exercise that discretion.
"Though you have the power... please don’t exercise it," Darnell asked Wednesday.
The funding agreement is part of the lease agreement, which transfers power from the FDHA to the GMHC. In exchange, the business community is said to have promised verbally to give Grady millions in badly needed funds.
The FDHA approved the lease on January 28, 2008, and sent it to Fulton and DeKalb County Commissioners for their consent. Both consented February 20, 2008 and February 26, 2008, respectively.
The FDHA then approved the revised lease based on changes made by the Counties on March 1, 2008.
The second resolution, also authored by Darnell and Edwards, asks the FDHA to develop and adopt a code of ethics.
"You and I know that every three weeks, there is some…concern over ethics," Darnell said of the FDHA.
"I don’t think it would do any harm," she added of adopting a code of ethics. "It would erase concerns of some members of the public…if the [FDHA] would just consider a code of ethics that has a little higher standards" than what is outlined in the Georgia Hospital Authorities Act.
(APN) ATLANTA – The Fulton County Board of Commissioners approved a pair of resolutions Wednesday, March 05, 2008, concerning funding and ethics at Grady Memorial Hospital, which as Atlanta Progressive News has previously reported, has been targeted for privatization by the business community.
The first resolution called on the Fulton-DeKalb Hospital Authority (FDHA) to not reduce or eliminate any provisions of the funding agreement between the FDHA and the Grady Memorial Hospital Corporation (GMHC), the nonprofit corporation created by FDHA to possibly take over management of the hospital system.
Section 3 of the funding agreement states before the execution of the lease agreement, the GMHC must obtain a written commitment from the business community that they will provide $200 million in capital improvements over four years to Grady Hospital.
The first payment should be $50 million, according to the funding agreement, to be paid immediately into escrow or in cash on or before execution.
It also calls on the business community to provide a written commitment it will undertake a "good faith, best efforts" campaign to raise an additional $100 million, beyond the $200 million, for capital improvements over three years.
But Section 5 of the funding agreement gives the FDHA the discretion to permit the GMHC to obtain less than the amounts of funds promised in Section 3 of the agreement.
Fulton’s resolution, authored by Commissioner Emma Darnell and Vice Chairman William "Bill" Edwards, asks the FDHA not exercise that discretion.
"Though you have the power... please don’t exercise it," Darnell asked Wednesday.
The funding agreement is part of the lease agreement, which transfers power from the FDHA to the GMHC. In exchange, the business community is said to have promised verbally to give Grady millions in badly needed funds.
The FDHA approved the lease on January 28, 2008, and sent it to Fulton and DeKalb County Commissioners for their consent. Both consented February 20, 2008 and February 26, 2008, respectively.
The FDHA then approved the revised lease based on changes made by the Counties on March 1, 2008.
The second resolution, also authored by Darnell and Edwards, asks the FDHA to develop and adopt a code of ethics.
"You and I know that every three weeks, there is some…concern over ethics," Darnell said of the FDHA.
"I don’t think it would do any harm," she added of adopting a code of ethics. "It would erase concerns of some members of the public…if the [FDHA] would just consider a code of ethics that has a little higher standards" than what is outlined in the Georgia Hospital Authorities Act.
Friday, April 4, 2008
Shutting Grady Would Swamp Other Hospitals, Many Say
By GAYLE WHITE / gwhite@ajc.com Published on: 11/25/07
Consider these possibilities:
A well-insured woman's long-awaited hip replacement is postponed. Her bed has been taken by a homeless woman in need of emergency surgery for a broken hip.
A house in Buckhead bursts into flames, and several people are burned. Helicopters airlift them to Augusta to the state's only burn center.
A late-night pileup occurs on the Downtown Connector. Ambulances race the most severely injured passengers to Macon, where the specialists they need are available around the clock.
Those and other images of metro Atlanta without Grady Health System have brought business leaders, elected officials, doctors and clergy together in a historic effort to save the state's largest public hospital.
Having Grady healthy is in the best interest of all metro Atlanta residents and all other hospitals, said Dr. Robert Albin, chairman of the board of the Medical Association of Atlanta.
"There's no doubt in our minds that the medical delivery system in Fulton and DeKalb counties is entirely incapable of absorbing the inpatient, outpatient, emergency and referral load if Grady is not there," Albin said.
"People would be naive to believe there wouldn't be a logjam in the emergency rooms in all our hospitals. They would be naive to believe there wouldn't be a shortage of beds. The access to health care people have taken for granted may be severely compromised."
Hope for survival
Months of studying, meeting and negotiating could come to a head Monday when the Fulton-DeKalb Hospital Authority is scheduled to vote on restructuring management of the Grady Health System.
A task force of the Metro Atlanta Chamber of Commerce proposed turning over day-to-day management to a private nonprofit corporation run by a board independent from county politicians.
Leaders of the task force, which was created at the request of the hospital authority, said the shift is mandatory to attract the money needed to keep the hospital afloat.
Grady has lost money every year since 2000 and faces a projected record deficit of about $55 million this year.
Chamber leaders say they have a $200 million commitment for capital improvements at Grady if the proposal is approved.
Critics argue that county, state and federal governments should fund the hospital adequately under its current management system and warn that creating a private corporation could endanger Grady's commitment to the poor.
Both sides say Grady must be rescued. At stake is a range of medical services, from a neonatal intensive care unit that cares for babies from throughout Georgia, to Crestview, the state's largest nursing home.
Right now, Grady is the front-line hospital in the event of a plane crash at Hartsfield-Jackson International Airport, a major influenza outbreak in metro Atlanta or an assassination attempt on a visiting presidential candidate. And, as a teaching hospital for Emory University and Morehouse schools of medicine, Grady Memorial Hospital trains a quarter of Georgia's physicians.
"Grady doctors go all over the state," said Ben Robinson, executive director of the Georgia Board for Physician Workforce. "Grady is servicing rural Georgia as well as Atlanta."
Selling point for business
Any threat to Grady threatens not only medical care across metro Atlanta but possibly the region's economy, business and medical leaders say.
"Atlanta hosts over 3 million people a year in conventions and trade shows alone," said Bill Howard of the Atlanta Convention and Visitors Bureau. "Trauma centers are probably not at the top of the mind for meeting planners, but they become top of the mind if an emergency comes up."
Georgia Tech economist Thomas Boston, who conducted studies in 2001 and 2006 on the economic impact of Grady, said Grady is an essential part of the social infrastructure that draws businesses to Atlanta.
"Major corporations will not move to an area they perceive has overcrowded and inefficient health care services," Boston said.
Business aside, some Atlanta area clergy are saying Grady is essential to the moral vision of the city because of its role in indigent care.
Grady is there, said the Rev. Gerald Durley, co-chairman of the Regional Council of Churches of Atlanta, "for the least, the lost and the left out."
Consider these possibilities:
A well-insured woman's long-awaited hip replacement is postponed. Her bed has been taken by a homeless woman in need of emergency surgery for a broken hip.
A house in Buckhead bursts into flames, and several people are burned. Helicopters airlift them to Augusta to the state's only burn center.
A late-night pileup occurs on the Downtown Connector. Ambulances race the most severely injured passengers to Macon, where the specialists they need are available around the clock.
Those and other images of metro Atlanta without Grady Health System have brought business leaders, elected officials, doctors and clergy together in a historic effort to save the state's largest public hospital.
Having Grady healthy is in the best interest of all metro Atlanta residents and all other hospitals, said Dr. Robert Albin, chairman of the board of the Medical Association of Atlanta.
"There's no doubt in our minds that the medical delivery system in Fulton and DeKalb counties is entirely incapable of absorbing the inpatient, outpatient, emergency and referral load if Grady is not there," Albin said.
"People would be naive to believe there wouldn't be a logjam in the emergency rooms in all our hospitals. They would be naive to believe there wouldn't be a shortage of beds. The access to health care people have taken for granted may be severely compromised."
Hope for survival
Months of studying, meeting and negotiating could come to a head Monday when the Fulton-DeKalb Hospital Authority is scheduled to vote on restructuring management of the Grady Health System.
A task force of the Metro Atlanta Chamber of Commerce proposed turning over day-to-day management to a private nonprofit corporation run by a board independent from county politicians.
Leaders of the task force, which was created at the request of the hospital authority, said the shift is mandatory to attract the money needed to keep the hospital afloat.
Grady has lost money every year since 2000 and faces a projected record deficit of about $55 million this year.
Chamber leaders say they have a $200 million commitment for capital improvements at Grady if the proposal is approved.
Critics argue that county, state and federal governments should fund the hospital adequately under its current management system and warn that creating a private corporation could endanger Grady's commitment to the poor.
Both sides say Grady must be rescued. At stake is a range of medical services, from a neonatal intensive care unit that cares for babies from throughout Georgia, to Crestview, the state's largest nursing home.
Right now, Grady is the front-line hospital in the event of a plane crash at Hartsfield-Jackson International Airport, a major influenza outbreak in metro Atlanta or an assassination attempt on a visiting presidential candidate. And, as a teaching hospital for Emory University and Morehouse schools of medicine, Grady Memorial Hospital trains a quarter of Georgia's physicians.
"Grady doctors go all over the state," said Ben Robinson, executive director of the Georgia Board for Physician Workforce. "Grady is servicing rural Georgia as well as Atlanta."
Selling point for business
Any threat to Grady threatens not only medical care across metro Atlanta but possibly the region's economy, business and medical leaders say.
"Atlanta hosts over 3 million people a year in conventions and trade shows alone," said Bill Howard of the Atlanta Convention and Visitors Bureau. "Trauma centers are probably not at the top of the mind for meeting planners, but they become top of the mind if an emergency comes up."
Georgia Tech economist Thomas Boston, who conducted studies in 2001 and 2006 on the economic impact of Grady, said Grady is an essential part of the social infrastructure that draws businesses to Atlanta.
"Major corporations will not move to an area they perceive has overcrowded and inefficient health care services," Boston said.
Business aside, some Atlanta area clergy are saying Grady is essential to the moral vision of the city because of its role in indigent care.
Grady is there, said the Rev. Gerald Durley, co-chairman of the Regional Council of Churches of Atlanta, "for the least, the lost and the left out."
Medicaid Tab Hurts Grady; State Must Help
By Mike King - The Atlanta Journal-Constitution - 12/13/07
The state of Georgia shouldn't have a hard time finding more money to help pay for trauma care at Grady Memorial Hospital and other trauma care centers around the state. Certainly, that will be easy compared to Grady's most threatening financial ailment —- compensation for the thousands of Medicaid patients who rely on the Atlanta hospital for basic health care.
Put aside, for the moment, how Grady has been managed over the years. The hospital has always served as the canary in the coal mine for public health care financing in Georgia. And that bird is chirping at the top of its little lungs.
Grady can't survive without a major overhaul in the way the state pays for acute care to the poorest of the poor and those who have no health insurance. The problem it faces is duplicated at dozens of public hospitals statewide, even if they do not face Grady's immediate financial crisis.
To Grady's benefit, a political consensus seems finally to be forming to create a special fund for trauma care. Gov. Sonny Perdue, House Speaker Glenn Richardson and Lt. Gov. Casey Cagle have all indicated they will encourage the General Assembly to find a way to directly support the statewide network of trauma hospitals. Grady, which operates the busiest and most sophisticated trauma unit in the network —- and the only one in North Georgia —- could wind up getting as much as $30 million if they prevail.
That will help, but it won't come close to solving the hospital's financial problems. Grady bleeds most of its red ink in providing routine, acute-care services for the 56 percent of its patients whose bills are supposed to be paid by Georgia's Medicaid program. And when a hospital loses money treating more than half of its patients, its long-term survival prospects are bleak.
The decades-old Medicaid program was originally designed for those among the poorest of the poor who needed to be hospitalized for acute illnesses. But the health insurance program has changed dramatically over the years, now covering, among other things, nursing home care for the indigent elderly and disabled.
How the program is financed has changed as well. In Georgia, the state is responsible for about 40 percent of the costs for covering roughly 600,000 residents. As Congress moved to restrict how much is paid at the federal level, Georgia and other states have taken on more of the financial burden —- so much so that for several years Medicaid was the fastest growing part of the state's annual budget.
To keep Medicaid costs from accelerating even more, the state has done two things: It cut the reimbursement rate for most Medicaid patients to about 85 percent of what the hospitals usually get for a Medicare patient getting the same care, which means high-cost hospitals lose money on many Medicaid patients. The state also contracted with managed-care organizations to run the program; physicians are required to get permission before admitting a Medicaid patient for hospital care.
The first measure was strictly for belt tightening. The second is supposed to improve the quality of care —- forcing Medicaid patients to use a physician for routine care instead of just showing up in emergency rooms. But the change also reduced costs $78 million in its first year.
While that may have helped the state's bottom line, it has hurt public hospitals, especially Grady. For instance, if a Medicaid patient is treated in an emergency room for a condition the managed-care plan doesn't consider an emergency, the hospital gets a flat fee of $50 to $75. Yet, hospitals are required to screen all ER patients who routinely run up hundreds of dollars in diagnostic charges.
With no relief from the federal government in sight, the state now faces some hard decisions —- start paying a much higher percentage of Medicaid's tab by raising more revenue (meaning taxes) or continue to let hospitals bleed more red ink.
Reaching a consensus on what to do about that will not come easily or quickly. Grady officials will have to take a leap of faith that the state is up to the task. And state officials need to get started in finding a solution, otherwise more Georgia hospitals will soon be in the same shape Grady finds itself in now.
Mike King is a member of the editorial board. His column appears Thursdays.
mking@ajc.com
The state of Georgia shouldn't have a hard time finding more money to help pay for trauma care at Grady Memorial Hospital and other trauma care centers around the state. Certainly, that will be easy compared to Grady's most threatening financial ailment —- compensation for the thousands of Medicaid patients who rely on the Atlanta hospital for basic health care.
Put aside, for the moment, how Grady has been managed over the years. The hospital has always served as the canary in the coal mine for public health care financing in Georgia. And that bird is chirping at the top of its little lungs.
Grady can't survive without a major overhaul in the way the state pays for acute care to the poorest of the poor and those who have no health insurance. The problem it faces is duplicated at dozens of public hospitals statewide, even if they do not face Grady's immediate financial crisis.
To Grady's benefit, a political consensus seems finally to be forming to create a special fund for trauma care. Gov. Sonny Perdue, House Speaker Glenn Richardson and Lt. Gov. Casey Cagle have all indicated they will encourage the General Assembly to find a way to directly support the statewide network of trauma hospitals. Grady, which operates the busiest and most sophisticated trauma unit in the network —- and the only one in North Georgia —- could wind up getting as much as $30 million if they prevail.
That will help, but it won't come close to solving the hospital's financial problems. Grady bleeds most of its red ink in providing routine, acute-care services for the 56 percent of its patients whose bills are supposed to be paid by Georgia's Medicaid program. And when a hospital loses money treating more than half of its patients, its long-term survival prospects are bleak.
The decades-old Medicaid program was originally designed for those among the poorest of the poor who needed to be hospitalized for acute illnesses. But the health insurance program has changed dramatically over the years, now covering, among other things, nursing home care for the indigent elderly and disabled.
How the program is financed has changed as well. In Georgia, the state is responsible for about 40 percent of the costs for covering roughly 600,000 residents. As Congress moved to restrict how much is paid at the federal level, Georgia and other states have taken on more of the financial burden —- so much so that for several years Medicaid was the fastest growing part of the state's annual budget.
To keep Medicaid costs from accelerating even more, the state has done two things: It cut the reimbursement rate for most Medicaid patients to about 85 percent of what the hospitals usually get for a Medicare patient getting the same care, which means high-cost hospitals lose money on many Medicaid patients. The state also contracted with managed-care organizations to run the program; physicians are required to get permission before admitting a Medicaid patient for hospital care.
The first measure was strictly for belt tightening. The second is supposed to improve the quality of care —- forcing Medicaid patients to use a physician for routine care instead of just showing up in emergency rooms. But the change also reduced costs $78 million in its first year.
While that may have helped the state's bottom line, it has hurt public hospitals, especially Grady. For instance, if a Medicaid patient is treated in an emergency room for a condition the managed-care plan doesn't consider an emergency, the hospital gets a flat fee of $50 to $75. Yet, hospitals are required to screen all ER patients who routinely run up hundreds of dollars in diagnostic charges.
With no relief from the federal government in sight, the state now faces some hard decisions —- start paying a much higher percentage of Medicaid's tab by raising more revenue (meaning taxes) or continue to let hospitals bleed more red ink.
Reaching a consensus on what to do about that will not come easily or quickly. Grady officials will have to take a leap of faith that the state is up to the task. And state officials need to get started in finding a solution, otherwise more Georgia hospitals will soon be in the same shape Grady finds itself in now.
Mike King is a member of the editorial board. His column appears Thursdays.
mking@ajc.com
Resolution for Creation of 501(c)3 Corporation, Lease and Funding Agreement
RESOLUTION AUTHORIZING THE CREATION OF A 501(C)(3) CORPORATION, AND THE PREPARATION OF A LEASE AGREEMENT AND A FUNDING AGREEMENT
WHEREAS, The Fulton-DeKalb Hospital Authority (the “Authority”) was created on August 6, 1941, and owns and operates the Grady Health System (the “System”) a comprehensive healthcare system which includes Grady Memorial Hospital (“Grady Hospital”), Hughes Spalding Hospital (“Hughes Spalding”), Crestview Nursing and Rehabilitation Facility (“Crestview”), neighborhood health centers, and certain other real and personal property;
WHEREAS, as the primary provider of healthcare for the indigent and uninsured populations of Fulton County, DeKalb County, and surrounding areas, the Authority has sought over the past decades to fulfill its historic mission and preserve its unique role and character in the face of increasing indigent and charity populations and decreasing public funds;
WHEREAS, as a result of decreasing public funds, adverse reimbursement policies and other factors beyond the control of the Authority, the Authority has suffered severe financial hardships and deficits in recent years that have threatened the System’s ability to continue to provide high-quality medical services to the indigent and other residents of Fulton and DeKalb Counties;
WHEREAS, in seeking to address its current financial situation in the face of rising healthcare costs and diminished resources, the Authority (i) engaged a national consulting firm to evaluate its financial and operating conditions, (ii) sought additional input from business and other organizations and received the report of the Greater Grady Task Force of the Metro Atlanta Chamber of Commerce, and (iii) engaged the law firm of Troutman Sanders LLP to conduct due diligence activities relating to a proposed restructuring of the System;
WHEREAS, in response to said due diligence activities, as well as input and recommendations from Authority stakeholders and other parties, the Authority on September 24, 2007, authorized the Chairperson to appoint a special committee of Trustees (the “Exploratory Committee”) to work jointly with an Ad Hoc Advisory Group of representatives from civic, religious, governmental, business, philanthropic, and other community interests to explore strategic alternatives for the future operations of the System;
WHEREAS, the Exploratory Committee convened several meetings and considered various options to address the financial challenges facing the Authority, including but not limited to state government funding of Grady Hospital operations; the creation of a regional hospital authority to jointly fund Grady Hospital operations; the initiation or increase of sales and/or ad valorem taxes to directly fund Grady Hospital operations; and the formation of a 501(c)(3) nonprofit corporation which would lease Grady Hospital and other operating units of the System from the Authority, would assume many debts and liabilities of the Authority, and would assume responsibility for the day-to-day operations of the System, including Grady Hospital;
WHEREAS, The Fulton-DeKalb Hospital Authority (the “Authority”) was created on August 6, 1941, and owns and operates the Grady Health System (the “System”) a comprehensive healthcare system which includes Grady Memorial Hospital (“Grady Hospital”), Hughes Spalding Hospital (“Hughes Spalding”), Crestview Nursing and Rehabilitation Facility (“Crestview”), neighborhood health centers, and certain other real and personal property;
WHEREAS, as the primary provider of healthcare for the indigent and uninsured populations of Fulton County, DeKalb County, and surrounding areas, the Authority has sought over the past decades to fulfill its historic mission and preserve its unique role and character in the face of increasing indigent and charity populations and decreasing public funds;
WHEREAS, as a result of decreasing public funds, adverse reimbursement policies and other factors beyond the control of the Authority, the Authority has suffered severe financial hardships and deficits in recent years that have threatened the System’s ability to continue to provide high-quality medical services to the indigent and other residents of Fulton and DeKalb Counties;
WHEREAS, in seeking to address its current financial situation in the face of rising healthcare costs and diminished resources, the Authority (i) engaged a national consulting firm to evaluate its financial and operating conditions, (ii) sought additional input from business and other organizations and received the report of the Greater Grady Task Force of the Metro Atlanta Chamber of Commerce, and (iii) engaged the law firm of Troutman Sanders LLP to conduct due diligence activities relating to a proposed restructuring of the System;
WHEREAS, in response to said due diligence activities, as well as input and recommendations from Authority stakeholders and other parties, the Authority on September 24, 2007, authorized the Chairperson to appoint a special committee of Trustees (the “Exploratory Committee”) to work jointly with an Ad Hoc Advisory Group of representatives from civic, religious, governmental, business, philanthropic, and other community interests to explore strategic alternatives for the future operations of the System;
WHEREAS, the Exploratory Committee convened several meetings and considered various options to address the financial challenges facing the Authority, including but not limited to state government funding of Grady Hospital operations; the creation of a regional hospital authority to jointly fund Grady Hospital operations; the initiation or increase of sales and/or ad valorem taxes to directly fund Grady Hospital operations; and the formation of a 501(c)(3) nonprofit corporation which would lease Grady Hospital and other operating units of the System from the Authority, would assume many debts and liabilities of the Authority, and would assume responsibility for the day-to-day operations of the System, including Grady Hospital;
Questions Remain as Grady Hospital Holds Lease Hearings
By Jonathan Springston - The Atlanta Progressive News - 12/28/2007
(APN) ATLANTA – The Fulton-DeKalb Hospital Authority (FDHA) held two legally required public hearings on December 27, 2007, to let the public speak out on the proposed leasing of the Grady Health System to a nonprofit corporation.
Attendance at the hearings was relatively low due to the current holiday season, and not only among the public. Only three FDHA Board Members were in attendance.
The agreement, which is still tentative and under negotiation, provides for the leasing of Grady’s assets to the proposed Grady Memorial Hospital Corporation (GMHC), a 501(c)(3) that would oversee the daily operation of the hospital.
GMHC has not been formed as a Georgia corporation as of this date according to the Secretary of State’s website, Atlanta Progressive News can confirm. However, a name reservation was filed for GMHC on November 27, 2007, one day after FDHA passed a resolution to create the corporation.
"This is a work in progress," Pam Stephenson, FDHA Chairwoman, told Atlanta Progressive News. "We will go back and come up with something acceptable to all parties."
The draft lease states the GMHC must "irrevocably, absolutely, and unconditionally provide indigent care and charity care and operate the hospital as a safety net hospital."
While the GMHC would control Grady’s major medical services it must consult with the FDHA before eliminating any service, according to the draft lease.
If the GMHC does make a cut and the FDHA determines the move could put Grady’s Mission of serving the poor and uninsured in jeopardy, the FDHA could declare the whole lease null and void.
"The historic mission of the hospital – changing that is a deal breaker," Dr. Christopher Edwards, FDHA Vice Chair, said. "That is not an option. We envision those services will continue to be provided."
According to the November 26 resolution, the FDHA still needs to obtain recognition of tax-exempt status from the Internal Revenue Service (IRS) of the United States of the proposed corporation. It is unclear how tax-exempt status can be sought for an organization that has not yet been created.
The FDHA has to also approve a final draft of the lease agreement.
However, there are also several conditions outlined in the November 26 resolution that have not been met.
As previously reported by Atlanta Progressive News, that resolution, which provides for the creation of the GMHC, calls on the State of Georgia to provide written confirmation that it will support $30 million in annual financial support for Grady. Many state leaders, including Governor Sonny Perdue, oppose that idea.
Also, the resolution calls on the business, philanthropic, and charitable communities to provide written confirmation of their intent to provide $200 million for capital improvements to be paid over four years.
Anonymous business leaders have allegedly pledged to give Grady $200 million but only after the FDHA turns over control to the GMHC. The identity of the donor or donors remains a mystery.
While negotiations continue, it is unclear if the State, Fulton, and/or DeKalb Counties will agree to provide additional annual Grady funding or if anonymous donors would be willing to deliver $200 million before the power transfer occurs.
If these stipulations are not met, it is unknown whether or not the FDHA will decide to move forward with transferring its power and Grady’s assets to the GHMC.
In response to questions from APN, attorneys from the FDHA merely said that they were still working on trying to get additional funding.
It appears, however, that the FDHA would not be able to approve the lease, based on the language in the November 26 resolution. In that case, a new resolution may have to be passed for the lease to go forward.
Those who spoke at both hearings Thursday remain skeptical of the whole process and angry over how it is being carried out.
For example, many were outraged they did not receive copies of the draft of the lease agreement in advance of the hearings. State Sen. Vincent Fort (D-Atlanta) called it "an absolute insult."
"How can we have a public hearing on the lease agreement when it is not here?" Derrick Boazman, former Atlanta City Councilman and activist, asked.
"Without the actual document in the room, we don’t know what we’re discussing. We’re just talking to each other."
Indeed, copies of the draft were not available to the public or press until near the end of the first hearing, when copies finally circulated.
Many citizens maintained the FDHA’s plan to relinquish control of Grady to a nonprofit corporation is a sham which will endanger the hospital’s mission of serving the poor and uninsured.
"People in the streets are totally baffled by what’s happening behind closed doors," Dianne Mathiowetz, member of the Atlanta International Action Center, said. "If this new Board thinks it’s going to close services, it’s not going to happen without a struggle."
"It’s up to the [FDHA] to set the record straight and snatch victory from the jaws of defeat," Leonard Tate, community activist, said. "The public is getting hoodwinked and the poor are being exploited."
The FDHA has yet to announce a specific date to discuss and vote on a final lease agreement. The FDHA will hold another public meeting sometime in early 2008 for these purposes, Chairwoman Stephenson told Atlanta Progressive News.
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News and may be reached at jonathan@atlantaprogressivenews.com.
(APN) ATLANTA – The Fulton-DeKalb Hospital Authority (FDHA) held two legally required public hearings on December 27, 2007, to let the public speak out on the proposed leasing of the Grady Health System to a nonprofit corporation.
Attendance at the hearings was relatively low due to the current holiday season, and not only among the public. Only three FDHA Board Members were in attendance.
The agreement, which is still tentative and under negotiation, provides for the leasing of Grady’s assets to the proposed Grady Memorial Hospital Corporation (GMHC), a 501(c)(3) that would oversee the daily operation of the hospital.
GMHC has not been formed as a Georgia corporation as of this date according to the Secretary of State’s website, Atlanta Progressive News can confirm. However, a name reservation was filed for GMHC on November 27, 2007, one day after FDHA passed a resolution to create the corporation.
"This is a work in progress," Pam Stephenson, FDHA Chairwoman, told Atlanta Progressive News. "We will go back and come up with something acceptable to all parties."
The draft lease states the GMHC must "irrevocably, absolutely, and unconditionally provide indigent care and charity care and operate the hospital as a safety net hospital."
While the GMHC would control Grady’s major medical services it must consult with the FDHA before eliminating any service, according to the draft lease.
If the GMHC does make a cut and the FDHA determines the move could put Grady’s Mission of serving the poor and uninsured in jeopardy, the FDHA could declare the whole lease null and void.
"The historic mission of the hospital – changing that is a deal breaker," Dr. Christopher Edwards, FDHA Vice Chair, said. "That is not an option. We envision those services will continue to be provided."
According to the November 26 resolution, the FDHA still needs to obtain recognition of tax-exempt status from the Internal Revenue Service (IRS) of the United States of the proposed corporation. It is unclear how tax-exempt status can be sought for an organization that has not yet been created.
The FDHA has to also approve a final draft of the lease agreement.
However, there are also several conditions outlined in the November 26 resolution that have not been met.
As previously reported by Atlanta Progressive News, that resolution, which provides for the creation of the GMHC, calls on the State of Georgia to provide written confirmation that it will support $30 million in annual financial support for Grady. Many state leaders, including Governor Sonny Perdue, oppose that idea.
Also, the resolution calls on the business, philanthropic, and charitable communities to provide written confirmation of their intent to provide $200 million for capital improvements to be paid over four years.
Anonymous business leaders have allegedly pledged to give Grady $200 million but only after the FDHA turns over control to the GMHC. The identity of the donor or donors remains a mystery.
While negotiations continue, it is unclear if the State, Fulton, and/or DeKalb Counties will agree to provide additional annual Grady funding or if anonymous donors would be willing to deliver $200 million before the power transfer occurs.
If these stipulations are not met, it is unknown whether or not the FDHA will decide to move forward with transferring its power and Grady’s assets to the GHMC.
In response to questions from APN, attorneys from the FDHA merely said that they were still working on trying to get additional funding.
It appears, however, that the FDHA would not be able to approve the lease, based on the language in the November 26 resolution. In that case, a new resolution may have to be passed for the lease to go forward.
Those who spoke at both hearings Thursday remain skeptical of the whole process and angry over how it is being carried out.
For example, many were outraged they did not receive copies of the draft of the lease agreement in advance of the hearings. State Sen. Vincent Fort (D-Atlanta) called it "an absolute insult."
"How can we have a public hearing on the lease agreement when it is not here?" Derrick Boazman, former Atlanta City Councilman and activist, asked.
"Without the actual document in the room, we don’t know what we’re discussing. We’re just talking to each other."
Indeed, copies of the draft were not available to the public or press until near the end of the first hearing, when copies finally circulated.
Many citizens maintained the FDHA’s plan to relinquish control of Grady to a nonprofit corporation is a sham which will endanger the hospital’s mission of serving the poor and uninsured.
"People in the streets are totally baffled by what’s happening behind closed doors," Dianne Mathiowetz, member of the Atlanta International Action Center, said. "If this new Board thinks it’s going to close services, it’s not going to happen without a struggle."
"It’s up to the [FDHA] to set the record straight and snatch victory from the jaws of defeat," Leonard Tate, community activist, said. "The public is getting hoodwinked and the poor are being exploited."
The FDHA has yet to announce a specific date to discuss and vote on a final lease agreement. The FDHA will hold another public meeting sometime in early 2008 for these purposes, Chairwoman Stephenson told Atlanta Progressive News.
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News and may be reached at jonathan@atlantaprogressivenews.com.
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.
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.
Grady Hospital Activists Deliver Petitions to State Leaders
By Jonathan Springston - The Atlanta Progressive News - 1/19/2008
photo: Our Voices 2008
(APN) ATLANTA – About 50 members of the Grady Coalition delivered 10,000 signed petitions to the Georgia State Capitol Tuesday, January 15, 2008, urging State leaders to provide more funding for the Grady Health System.
"The central issue is making sure Grady gets the resources it needs as a regional hospital," State Sen. Vincent Fort (D-Atlanta) said during a press conference held before delivery of the petitions.
The Georgia General Assembly reconvened this week and so far, several lawmakers have proposed imposing a variety of fees to fund a statewide trauma care network. Sen. Fort said in addition to funding a statewide trauma care network, the General Assembly could consider many bills concerning Grady.
One bill, SR 722, introduced on January 17, 2008, by Sen. David Shafer (R-Duluth) would create a state-level Grady committee to oversee issues like funding, contract, and structure. It has 30 bipartisan cosponsors.
Another bill by Shafer, SB 353, would ban vendors and others with financial ties to Grady from leading it.The Grady Coalition is hoping the large volume of petitions will signal to lawmakers the desire of Georgians to see state funding for Grady.
"We have heard rumors they [State leaders] want to do the right thing," Rev. Timothy McDonald, of the First Iconium Baptist Church, said. "We hope and pray all these elected officials will support [Dr. Martin Luther King's] name…by passing legislation that supports Grady."
After the press conference, the Grady Coalition marched into the Capitol to deliver the petitions. Members visited Gov. Sonny Perdue’s office first.
"Grady is not just a place for people to get healed, it’s a place to transform," Hul-yah Yis-rael, a Grady patient, told Bert Brantley, Gov. Perdue’s press secretary. Gov. Perdue has proposed imposing additional fines on "super speeders," or drivers who are caught driving well above the speed limit, to help fund a trauma network.
From there, it was on to Lt. Gov. Casey Cagle’s office. "Grady is the people’s hospital," Chioke Perry, another Grady patient, said. "We need State support for the people’s hospital."
Lt. Gov. Cagle has also expressed support for funding a statewide trauma network with State dollars but has not offered specifics on how to do so.
The final stop was the office of Speaker of the House Glenn Richardson, who spoke Tuesday morning in the House of his determination to secure funding for a trauma care network.
Richardson proposed several weeks ago imposing a $10 annual fee on all vehicle registrations to support the network.
The speaker now appears more flexible on the funding issue when he said Tuesday he does not care how the funding occurs, just as long as it occurs, according to an Atlanta Journal-Constitution blog.
State Rep. Harry Geisinger (R-Roswell) has proposed a different kind of fee: a one dollar per month fee on all cell phones and land lines. Geisinger’s proposal, which has not been introduced and does not have a bill number, also includes a 10 percent tax to all disposable cell phones and a 10 percent tax on all minutes purchased on those phones.
Sen. Fort said there could be a bill that would impose a half cent sales tax to fund Grady but he is unsure who would introduce such a bill or when.
photo: Our Voices 2008
(APN) ATLANTA – About 50 members of the Grady Coalition delivered 10,000 signed petitions to the Georgia State Capitol Tuesday, January 15, 2008, urging State leaders to provide more funding for the Grady Health System.
"The central issue is making sure Grady gets the resources it needs as a regional hospital," State Sen. Vincent Fort (D-Atlanta) said during a press conference held before delivery of the petitions.
The Georgia General Assembly reconvened this week and so far, several lawmakers have proposed imposing a variety of fees to fund a statewide trauma care network. Sen. Fort said in addition to funding a statewide trauma care network, the General Assembly could consider many bills concerning Grady.
One bill, SR 722, introduced on January 17, 2008, by Sen. David Shafer (R-Duluth) would create a state-level Grady committee to oversee issues like funding, contract, and structure. It has 30 bipartisan cosponsors.
Another bill by Shafer, SB 353, would ban vendors and others with financial ties to Grady from leading it.The Grady Coalition is hoping the large volume of petitions will signal to lawmakers the desire of Georgians to see state funding for Grady.
"We have heard rumors they [State leaders] want to do the right thing," Rev. Timothy McDonald, of the First Iconium Baptist Church, said. "We hope and pray all these elected officials will support [Dr. Martin Luther King's] name…by passing legislation that supports Grady."
After the press conference, the Grady Coalition marched into the Capitol to deliver the petitions. Members visited Gov. Sonny Perdue’s office first.
"Grady is not just a place for people to get healed, it’s a place to transform," Hul-yah Yis-rael, a Grady patient, told Bert Brantley, Gov. Perdue’s press secretary. Gov. Perdue has proposed imposing additional fines on "super speeders," or drivers who are caught driving well above the speed limit, to help fund a trauma network.
From there, it was on to Lt. Gov. Casey Cagle’s office. "Grady is the people’s hospital," Chioke Perry, another Grady patient, said. "We need State support for the people’s hospital."
Lt. Gov. Cagle has also expressed support for funding a statewide trauma network with State dollars but has not offered specifics on how to do so.
The final stop was the office of Speaker of the House Glenn Richardson, who spoke Tuesday morning in the House of his determination to secure funding for a trauma care network.
Richardson proposed several weeks ago imposing a $10 annual fee on all vehicle registrations to support the network.
The speaker now appears more flexible on the funding issue when he said Tuesday he does not care how the funding occurs, just as long as it occurs, according to an Atlanta Journal-Constitution blog.
State Rep. Harry Geisinger (R-Roswell) has proposed a different kind of fee: a one dollar per month fee on all cell phones and land lines. Geisinger’s proposal, which has not been introduced and does not have a bill number, also includes a 10 percent tax to all disposable cell phones and a 10 percent tax on all minutes purchased on those phones.
Sen. Fort said there could be a bill that would impose a half cent sales tax to fund Grady but he is unsure who would introduce such a bill or when.
Grady Board Approves Lease, Despite Unmet Conditions
By Jonathan Springston - The Atlanta Progressive News - 1/30/2008
(APN) ATLANTA – The Fulton-DeKalb Hospital Authority (FDHA) approved in principle a lease agreement 8-1 Monday, January 28, 2008, that will transfer much of its current authority to the Grady Memorial Hospital Corporation (GMHC), a private, nonprofit governing board.
According to the Georgia Secretary of State’s website, Atlanta Progressive News can confirm that the GMHC has officially incorporated, although no officers have been yet appointed. Troutman-Sanders law firm is designated as the registered agent.
FDHA Member Geoffrey A. Heard voted no because he opposed the plan to shift management of Grady Hospital to a private entity in the first place. Chairwoman Pam Stephenson did not vote.
The process is far from over, as several conditions remain unfulfilled.
The Board, which will initially appoint the 16 members to the nonprofit corporation, did not do so Monday but could within a week.
Once those Board Members are chosen, they will have to approve the lease.
Attorney Lewis Horne, who worked on the lease, said Fulton and DeKalb County Commissioners must consent to the lease because each has bond agreements with the hospital.
But he noted both would only have a general consent, not a word-by-word consent, and it would be up to both to decide how to approve.
Fulton County Attorney Gerry Clark said he is recommending Commissioners hold a vote on the agreement.
PUBLIC REMAINS UNCONVINCED
The lease states the GMHC will continue Grady’s Mission as a charity hospital and its "major service lines," although it does not define what constitutes major service lines.
"If you leave it up to this new Board to define what major service lines are, you leave the door open to cuts," State Sen. Vincent Fort (D-Atlanta), a leader of the Grady Coalition, said.
Some citizens have been especially concerned the new Board could decide to close its dialysis centers and discontinue other services at Grady that are crucial for Atlanta’s indigent population.
"I have some unreadiness," Fort said. "How are we going to be sure as a community…that services won’t be cut?"
The lease specifies the GMHC must consult with the FDHA prior to cutting any major medical service lines, but an earlier draft of the lease was stronger. It had previously said the FDHA would essentially have veto power over any such cuts.
NO PUBLIC FEEDBACK
Stephenson promised on December 27, 2007, during two public hearings on the first draft of the lease to provide an advanced copy of a final draft before the FDHA voted on it.
Instead, the public received the final draft only minutes before the vote and there was no time allotted for public comment.
Fort called out the Board and requested the public be granted a new public hearing to discuss the final draft.
Trustees balked at the suggestion, but did allow some questions concerning the language of the lease after everyone had received a copy.
Horne said the agreement had gone through several drafts, with changes continuing all the way up until Monday’s meeting.
Those negotiations took place behind closed doors without input from the general public.
STIPULATIONS UNMET
There are several stipulations, not only in the lease agreement, but also in an earlier resolution by the FDHA, which remain unfulfilled.
The Board passed a resolution on November 26, 2007, that authorized the creation of a 501(c)(3) and the preparation of a funding and lease agreement.
However, it outlined several special conditions that must be met before the execution of the lease.
PRIVATE SUPPORT UNVERIFIED
The resolution calls for a written confirmation from the business community for a donation of $200 million for capital improvements to be paid out over four years.
The Metro Atlanta Chamber of Commerce has said for several weeks that an anonymous donor is willing to make a $200 million donation only after Grady makes the transition to a nonprofit.
The identity of that donor remains a mystery and it is unclear if a written confirmation has been provided or if said donor will follow through on his promise.
The resolution also called on the business community to provide written confirmation that they will undertake a campaign to raise another $100 million in private donations over three years.
It is unclear if that confirmation has been provided in writing or if the business community will indeed engage in such a campaign.
The lease agreement states that, as part of a separate funding agreement, the GHMC will be responsible for securing both the $200 million and a commitment to a $100 million fundraising campaign from the business community.
The Chamber has been leading the way in transforming Grady’s management structure and made it clear that money would only arrive to the troubled health system if the FDHA agreed to relinquish control to a 501(c)(3).
STATE SUPPORT UNRESOLVED
The resolution states that the Governor, Lieutenant Governor, and Speaker of the House must each provide written confirmations of their intent to support legislation that would not only secure an additional $30 million in annual funding but also funding for a statewide trauma network.
Each official has stated, like the Chamber, that Georgia would only agree to give Grady additional money after the FDHA turned over control to a 501(c)(3).
The Georgia General Assembly is considering several pieces of legislation concerning Grady this session, including HB 973, which would provide funding for a statewide trauma network through the imposition of a small tax on all telephone and wireless service subscribers.
While this legislation could generate funds for Grady’s Level I trauma center, there is no legislation currently before lawmakers that would give the hospital $30 million in direct, state financial assistance.
EMORY, MOREHOUSE NEGOTIATIONS NOT AGREED TO
As part of the funding agreement, the GMHC must secure from the Medical Schools at Emory University and Morehouse College a commitment to renegotiate outstanding obligations owed by Grady to the schools and the existing medical school contracts.
The resolution said Emory and Morehouse should provide written confirmations to the FDHA concerning these points.
While both schools have publicly expressed willingness to enter into some kind of negotiations, it is unclear how far either school is willing to negotiate or if either has provided written confirmations of their intent.
IRS DETERMINATION OF TAX EXEMPTION UNGRANTED
The GHMC has yet to file Form 1023 requesting the Internal Revenue Service of the US recognize the GMHC as a tax- exempt organization. Atlanta Progressive News called and sent emails to the FDHA and Troutman Sanders law firm regarding this matter, and were told by Mr. Horne on January 7, 2008, the forms have not yet been submitted.
The form requires the organization to provide detailed information on its funding, governance structure, operations, and must show no private partners or other entities are making private gain off of the organization, in order for it to meet tax-exempt criteria adopted by US Congress. It is unclear whether the GMHC decided on enough of those issues to be ready to submit such an application.
The IRS must provide this written determination before the lease can take effect. Horne said that form has yet to be filed on behalf of the GMHC and does not know how long it would take the IRS to provide the determination.
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News and may be reached at jonathan@atlantaprogressivenews.com.
(APN) ATLANTA – The Fulton-DeKalb Hospital Authority (FDHA) approved in principle a lease agreement 8-1 Monday, January 28, 2008, that will transfer much of its current authority to the Grady Memorial Hospital Corporation (GMHC), a private, nonprofit governing board.
According to the Georgia Secretary of State’s website, Atlanta Progressive News can confirm that the GMHC has officially incorporated, although no officers have been yet appointed. Troutman-Sanders law firm is designated as the registered agent.
FDHA Member Geoffrey A. Heard voted no because he opposed the plan to shift management of Grady Hospital to a private entity in the first place. Chairwoman Pam Stephenson did not vote.
The process is far from over, as several conditions remain unfulfilled.
The Board, which will initially appoint the 16 members to the nonprofit corporation, did not do so Monday but could within a week.
Once those Board Members are chosen, they will have to approve the lease.
Attorney Lewis Horne, who worked on the lease, said Fulton and DeKalb County Commissioners must consent to the lease because each has bond agreements with the hospital.
But he noted both would only have a general consent, not a word-by-word consent, and it would be up to both to decide how to approve.
Fulton County Attorney Gerry Clark said he is recommending Commissioners hold a vote on the agreement.
PUBLIC REMAINS UNCONVINCED
The lease states the GMHC will continue Grady’s Mission as a charity hospital and its "major service lines," although it does not define what constitutes major service lines.
"If you leave it up to this new Board to define what major service lines are, you leave the door open to cuts," State Sen. Vincent Fort (D-Atlanta), a leader of the Grady Coalition, said.
Some citizens have been especially concerned the new Board could decide to close its dialysis centers and discontinue other services at Grady that are crucial for Atlanta’s indigent population.
"I have some unreadiness," Fort said. "How are we going to be sure as a community…that services won’t be cut?"
The lease specifies the GMHC must consult with the FDHA prior to cutting any major medical service lines, but an earlier draft of the lease was stronger. It had previously said the FDHA would essentially have veto power over any such cuts.
NO PUBLIC FEEDBACK
Stephenson promised on December 27, 2007, during two public hearings on the first draft of the lease to provide an advanced copy of a final draft before the FDHA voted on it.
Instead, the public received the final draft only minutes before the vote and there was no time allotted for public comment.
Fort called out the Board and requested the public be granted a new public hearing to discuss the final draft.
Trustees balked at the suggestion, but did allow some questions concerning the language of the lease after everyone had received a copy.
Horne said the agreement had gone through several drafts, with changes continuing all the way up until Monday’s meeting.
Those negotiations took place behind closed doors without input from the general public.
STIPULATIONS UNMET
There are several stipulations, not only in the lease agreement, but also in an earlier resolution by the FDHA, which remain unfulfilled.
The Board passed a resolution on November 26, 2007, that authorized the creation of a 501(c)(3) and the preparation of a funding and lease agreement.
However, it outlined several special conditions that must be met before the execution of the lease.
PRIVATE SUPPORT UNVERIFIED
The resolution calls for a written confirmation from the business community for a donation of $200 million for capital improvements to be paid out over four years.
The Metro Atlanta Chamber of Commerce has said for several weeks that an anonymous donor is willing to make a $200 million donation only after Grady makes the transition to a nonprofit.
The identity of that donor remains a mystery and it is unclear if a written confirmation has been provided or if said donor will follow through on his promise.
The resolution also called on the business community to provide written confirmation that they will undertake a campaign to raise another $100 million in private donations over three years.
It is unclear if that confirmation has been provided in writing or if the business community will indeed engage in such a campaign.
The lease agreement states that, as part of a separate funding agreement, the GHMC will be responsible for securing both the $200 million and a commitment to a $100 million fundraising campaign from the business community.
The Chamber has been leading the way in transforming Grady’s management structure and made it clear that money would only arrive to the troubled health system if the FDHA agreed to relinquish control to a 501(c)(3).
STATE SUPPORT UNRESOLVED
The resolution states that the Governor, Lieutenant Governor, and Speaker of the House must each provide written confirmations of their intent to support legislation that would not only secure an additional $30 million in annual funding but also funding for a statewide trauma network.
Each official has stated, like the Chamber, that Georgia would only agree to give Grady additional money after the FDHA turned over control to a 501(c)(3).
The Georgia General Assembly is considering several pieces of legislation concerning Grady this session, including HB 973, which would provide funding for a statewide trauma network through the imposition of a small tax on all telephone and wireless service subscribers.
While this legislation could generate funds for Grady’s Level I trauma center, there is no legislation currently before lawmakers that would give the hospital $30 million in direct, state financial assistance.
EMORY, MOREHOUSE NEGOTIATIONS NOT AGREED TO
As part of the funding agreement, the GMHC must secure from the Medical Schools at Emory University and Morehouse College a commitment to renegotiate outstanding obligations owed by Grady to the schools and the existing medical school contracts.
The resolution said Emory and Morehouse should provide written confirmations to the FDHA concerning these points.
While both schools have publicly expressed willingness to enter into some kind of negotiations, it is unclear how far either school is willing to negotiate or if either has provided written confirmations of their intent.
IRS DETERMINATION OF TAX EXEMPTION UNGRANTED
The GHMC has yet to file Form 1023 requesting the Internal Revenue Service of the US recognize the GMHC as a tax- exempt organization. Atlanta Progressive News called and sent emails to the FDHA and Troutman Sanders law firm regarding this matter, and were told by Mr. Horne on January 7, 2008, the forms have not yet been submitted.
The form requires the organization to provide detailed information on its funding, governance structure, operations, and must show no private partners or other entities are making private gain off of the organization, in order for it to meet tax-exempt criteria adopted by US Congress. It is unclear whether the GMHC decided on enough of those issues to be ready to submit such an application.
The IRS must provide this written determination before the lease can take effect. Horne said that form has yet to be filed on behalf of the GMHC and does not know how long it would take the IRS to provide the determination.
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News and may be reached at jonathan@atlantaprogressivenews.com.
Emma Darnell Will Vote "No" for Grady Lease Agreement
PRESS RELEASE REGARDING THE GRADY LEASE AGREEMENT
FROM:Commissioner Emma Darnell Fulton County Board of Commissioners
If the subject draft Lease Agreement is presented to the Board of Commissioners on Wednesday, February 20, I will vote no.
My accountability to the residents of Fulton County is not limited to medical schools and their sponsors. Fulton County has invested millions in the support of quality health care services for indigent and charity residents of Fulton County. In 2007, expenditures for Grady Hospital including debt service and malpractice insurance exceeded $103 million dollars.
We are legally and morally required to provide oversight to the standard of care and the cost of health services at Grady. We cannot delegate to a private group no matter how well—intentioned the authority and responsibility to decide who lives and who dies at Grady.
We need state and federal support for Grady. We need a change in the ITCF (DSH) formula. We need state funding for trauma care. We need state legislation to establish a regional system of funding for Grady Hospital to include all counties whose residents receive primary care services at Grady.
We need a better understanding of the story of the “Good Samaritan.” The point is to “rescue” the man by the side of the road —not rob him again.
FROM:Commissioner Emma Darnell Fulton County Board of Commissioners
If the subject draft Lease Agreement is presented to the Board of Commissioners on Wednesday, February 20, I will vote no.
My accountability to the residents of Fulton County is not limited to medical schools and their sponsors. Fulton County has invested millions in the support of quality health care services for indigent and charity residents of Fulton County. In 2007, expenditures for Grady Hospital including debt service and malpractice insurance exceeded $103 million dollars.
We are legally and morally required to provide oversight to the standard of care and the cost of health services at Grady. We cannot delegate to a private group no matter how well—intentioned the authority and responsibility to decide who lives and who dies at Grady.
We need state and federal support for Grady. We need a change in the ITCF (DSH) formula. We need state funding for trauma care. We need state legislation to establish a regional system of funding for Grady Hospital to include all counties whose residents receive primary care services at Grady.
We need a better understanding of the story of the “Good Samaritan.” The point is to “rescue” the man by the side of the road —not rob him again.
Fulton County Consents to Grady Hospital Lease Agreement
By Jonathan Springston - The Atlanta Progressive News - 2/20/2008
(APN) ATLANTA – The Fulton County Board of Commissioners approved a resolution Wednesday, February 20, 2008, consenting to the lease and transfer agreement by and between the Fulton-DeKalb Hospital Authority (FDHA) and the Grady Memorial Hospital Corporation.
The lease, approved by the FDHA in January 2008, would hand daily operations of Grady over to a 501(c)(3) led by community and business leaders. As Atlanta Progressive News previously reported, the lease was approved even though a number of conditions set by the FDHA in their original privatization resolution have not been met.
Fulton County’s approval brings the process one step closer to completion. The DeKalb County Board of Commissioners will vote next week. Both counties would have to approve the lease in order for it to go forward because each has bond agreements with Grady, providing about $100 million annually.
Fulton Commissioners spent one hour Wednesday debating the lease, which they had only received in the last 24 hours.
"There is not one CEO who would move forward with a 40 year lease with as little information as we have in front of us today," Commissioner Robb Pitts said.
Despite this statement, Pitts voted to approve the agreement anyway, along with fellow commissioners John Eaves, Tom Lowe, Nancy Boxill, and Lynne Riley.
Commissioners Emma Darnell and Bill Edwards voted no. Darnell made up her mind before Wednesday’s meeting, releasing a statement Tuesday explaining her decision.
"We are legally and morally required to provide oversight to the standard of care and the cost of health services at Grady,” she said. “We cannot delegate to a private group no matter how well-intentioned the authority and responsibility to decide who lives and who dies at Grady."
Darnell added Wednesday the need for the State to provide regional Grady funding that includes all Georgia counties whose residents receive primary care at the hospital.
State leaders and anonymous members of Atlanta’s business community have promised to deliver millions of dollars in relief to Grady on the condition the hospital transfer its power to a private, nonprofit corporation.
According to proponents of privatization, business leaders have said that they will also undertake a “best efforts” campaign to raise even more money for Grady upon the change.
Despite these promises, it is unclear if anyone will truly follow through, a point made by Pitts Wednesday.
"You can call a press conference saying you’re going to raise $100 million and not raise a dime," he said.
The Georgia General Assembly is considering a number of bills on Grady this session, including HB 973, the "Georgia Trauma Hospital Support Act of 2008."
That bill would levy a small telephone tax on all Georgians and that money would be used to fund a statewide trauma network.
But State leaders are growing impatient as the process drags on and political pressure is growing.
Fulton’s vote comes one day after State Rep. Mike Jacobs (R-Atlanta) introduced a bill that would force Grady to make the change to a nonprofit management structure.
Jacobs’s bill would authorize a citizen or the State Attorney General to take legal action to force the change. In addition, it also threatens to remove the FDHA and take away trauma care funding.
DeKalb County Commissioners Larry Johnson and Connie Stokes will attend a public information meeting Thursday to discuss the proposed lease. All members of the public are invited to attend the meeting at the Manuel Maloof Auditorium in Decatur at 6:30 p.m.
DeKalb will most likely vote on the agreement at its next meeting on February 26, 2008.
(APN) ATLANTA – The Fulton County Board of Commissioners approved a resolution Wednesday, February 20, 2008, consenting to the lease and transfer agreement by and between the Fulton-DeKalb Hospital Authority (FDHA) and the Grady Memorial Hospital Corporation.
The lease, approved by the FDHA in January 2008, would hand daily operations of Grady over to a 501(c)(3) led by community and business leaders. As Atlanta Progressive News previously reported, the lease was approved even though a number of conditions set by the FDHA in their original privatization resolution have not been met.
Fulton County’s approval brings the process one step closer to completion. The DeKalb County Board of Commissioners will vote next week. Both counties would have to approve the lease in order for it to go forward because each has bond agreements with Grady, providing about $100 million annually.
Fulton Commissioners spent one hour Wednesday debating the lease, which they had only received in the last 24 hours.
"There is not one CEO who would move forward with a 40 year lease with as little information as we have in front of us today," Commissioner Robb Pitts said.
Despite this statement, Pitts voted to approve the agreement anyway, along with fellow commissioners John Eaves, Tom Lowe, Nancy Boxill, and Lynne Riley.
Commissioners Emma Darnell and Bill Edwards voted no. Darnell made up her mind before Wednesday’s meeting, releasing a statement Tuesday explaining her decision.
"We are legally and morally required to provide oversight to the standard of care and the cost of health services at Grady,” she said. “We cannot delegate to a private group no matter how well-intentioned the authority and responsibility to decide who lives and who dies at Grady."
Darnell added Wednesday the need for the State to provide regional Grady funding that includes all Georgia counties whose residents receive primary care at the hospital.
State leaders and anonymous members of Atlanta’s business community have promised to deliver millions of dollars in relief to Grady on the condition the hospital transfer its power to a private, nonprofit corporation.
According to proponents of privatization, business leaders have said that they will also undertake a “best efforts” campaign to raise even more money for Grady upon the change.
Despite these promises, it is unclear if anyone will truly follow through, a point made by Pitts Wednesday.
"You can call a press conference saying you’re going to raise $100 million and not raise a dime," he said.
The Georgia General Assembly is considering a number of bills on Grady this session, including HB 973, the "Georgia Trauma Hospital Support Act of 2008."
That bill would levy a small telephone tax on all Georgians and that money would be used to fund a statewide trauma network.
But State leaders are growing impatient as the process drags on and political pressure is growing.
Fulton’s vote comes one day after State Rep. Mike Jacobs (R-Atlanta) introduced a bill that would force Grady to make the change to a nonprofit management structure.
Jacobs’s bill would authorize a citizen or the State Attorney General to take legal action to force the change. In addition, it also threatens to remove the FDHA and take away trauma care funding.
DeKalb County Commissioners Larry Johnson and Connie Stokes will attend a public information meeting Thursday to discuss the proposed lease. All members of the public are invited to attend the meeting at the Manuel Maloof Auditorium in Decatur at 6:30 p.m.
DeKalb will most likely vote on the agreement at its next meeting on February 26, 2008.
New Grady Coalition Wants Tom Bell Off the Grady Board
4/3/2008 - Footage shot outisde of Crawford Long Hospital, Atlanta, Georgia.
Police Tackle State Senator Fort, Others before Grady Privatization Vote
By Jonathan Springston, Senior Staff Writer - The Atlanta Progressive News - 11-26-07
This article contains additional reporting by Matthew Cardinale, News Editor
(APN) ATLANTA – Atlanta Police officers physically wrangled with State Sen. Vincent Fort (D-Atlanta), former Atlanta City Councilman Derrick Boazman, and two other activists, during a confrontation with protesters shortly before the 10-member Fulton-Dekalb Hospital Authority unanimously approved a resolution to privatize Grady Hospital.
Officers pushed Fort up against a wall and handcuffed him. They tackled Boazman to the ground and dragged him down a hallway. Boazman’s arm and wrist were hurt in the incident.
"We literally were in hand and hand combat. You had a female officer just grabbing my arm and snatching me and I told her that was not even necessary. People literally went berserk when they saw me in handcuffs and them taking me down some back hallway," Boazman told Atlanta Progressive News.
Boazman said he watched as a third activist, Fort’s niece-in-law, was attacked by one officer. As he was being tackled to the ground, he saw "them trying to put this... baton around this girl's neck, and I said take that baton from off her neck. I told her take her damn hands off the girl. And none of the officers were trying to restrain her. When I said that everyone just froze up," Boazman said.
A fourth person was escorted out by police, Fort said.
"They beat me down, cussed me down. It's a police state. What they were doing is using brute force to keep people from the meeting. It was a public meeting, and they were willing to use brute force. The question is, what did they have to hide?” Fort told Atlanta Progressive News.
"It's kind of a fascist move. I'm not surprised at what people will do to keep power. I'm not surprised of the evil men will do," Fort said.
The Hospital Authority’s resolution will, among other actions, create a nonprofit corporation to take over the Hospital, much to the dismay of hundreds of citizens present for the vote.
But even angry public denunciations and demonstrations could not stem the Chamber of Commerce’s push, which–with the support of the Atlanta Journal-Constitution editorial board, Emory University, and Morehouse Colleges–created the appearance of an inevitable tide towards privatization.
Yet Authority Members sought to deflect responsibility for their votes.
"In three weeks, our cash position would have been zero," Vice Chairman Christopher Edwards said. "You have to make the best decisions you can."
"It may not be the best resolution but this is the only thing that can keep the doors open," Member Thomas Dortch said. "Don’t blame us. If folks don’t put money on the table, it’s not going to happen. Don’t convict us."
The Grady Memorial Hospital Corporation would be a tax-exempt 501(c)(3) corporation with a 17-member Board to govern Grady Memorial Hospital.
The Corporation will consist of at least four members from the current Authority. The Authority Chairperson will appoint the other members. It is unclear whom those other members will be or from what professions or circumstances they will come.
The Authority will still exist to retain ownership of the real estate and the Authority must give its consent "for any significant curtailment of the current major service lines or historic mission of Grady Hospital."
Creation of a nonprofit corporation comes with other special conditions. Members of the business, charitable, and philanthropic community must provide a written commitment to deliver at least $200 million in capital funds.
Unnamed members of the business community are said to have already promised to deliver $200 million to Grady upon the change to a 501(c)(3), as well as to engage in a fundraising campaign to raise an additional $100 million, which must also be confirmed in writing.
The Authority and Corporation must also prepare, execute, and deliver a lease agreement "in order to lease certain assets of the [Grady Health] System to the Corporation, which will assume certain liabilities of the System."
The resolution goes on to say, "The lease agreement would only be executed after completion of the statutorily required public hearings scheduled for Dec. 27, 2007, and no later than Dec. 31, 2007."
The business community would make a payment of no less than $50 million in cash or in escrow on or before the execution of the lease agreement. This would mark the first installment of a four-year payment plan for the $200 million.
The resolution urges the State of Georgia to enact legislation that would appropriate $30 million annually to Grady and to take measures to fund the Statewide Trauma Network.
Emory and Morehouse medical schools must provide written confirmation to the Authority of their commitment to continue training doctors at Grady, willingness to negotiate with the Authority to restructure all outstanding obligations owed by Grady, and willingness to renegotiate current contracts between the parties.
The Authority wants this confirmation no later than the execution and delivery of the lease agreement.
A DRAMATIC AFTERNOON
Several dozen protestors with the Grady Coalition, American Federation of State, County, and Municipal Employees (AFSCME), and other groups rallied in front of Grady earlier in the day to denounce any move to create a nonprofit corporation.
When these protestors moved into the hospital with the intent of letting their voice be heard at the Authority meeting, security did not allow them in.
Grady security officers informed those gathered that the Authority was holding its Executive Session and that the public was not allowed in.
Protestors were forced to wait over an hour and a half in two separate corridors until 3:30 p.m., the scheduled start time.
When that time passed and protestors had still not gained access, tempers began to boil over.
Fort and Boazman apparently tried to barge into the Authority’s session and that’s when they were subsequently physically handled by security. Protestors howled their disapproval.
After prolonged shouting matches and more waiting, word came around 4 p.m. the meeting would be moved to the Steiner Auditorium across the street so that everyone could attend.
Forty-five minutes after the meeting should have started, Chairwoman Pam Stephenson brought the session to order.
Members dealt with other business before Lewis Horne, an attorney with the Troutman Sanders law firm, read the resolution.
When no member had anything to say, the Authority was ready to vote. The audience shouted in disgust and demanded the public be allowed to speak before the vote.
Just when it seemed a riot might break out, Stephenson finally allowed a comment period and for the next hour and a half, citizens peppered the Authority with harsh criticisms.
"We didn’t come this far to have Uncle Toms sell out the least of these," Boazman, who in addition to Fort was allowed back in for the hearing, said.
"The State of Georgia created this problem," Rev. Tim McDonald, of the First Iconium Baptist Church, said. "This is extortion. The Chamber of Commerce is guilty of extortion. You didn’t create this problem."
"Who are they?" Nancy Lenk, deputy director of AFSCME Local 1644, asked. "We don’t even know the names of the people we’re signing the hospital away to."
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News and may be reached at jonathan@atlantaprogressivenews.com
This article contains additional reporting by Matthew Cardinale, News Editor
(APN) ATLANTA – Atlanta Police officers physically wrangled with State Sen. Vincent Fort (D-Atlanta), former Atlanta City Councilman Derrick Boazman, and two other activists, during a confrontation with protesters shortly before the 10-member Fulton-Dekalb Hospital Authority unanimously approved a resolution to privatize Grady Hospital.
Officers pushed Fort up against a wall and handcuffed him. They tackled Boazman to the ground and dragged him down a hallway. Boazman’s arm and wrist were hurt in the incident.
"We literally were in hand and hand combat. You had a female officer just grabbing my arm and snatching me and I told her that was not even necessary. People literally went berserk when they saw me in handcuffs and them taking me down some back hallway," Boazman told Atlanta Progressive News.
Boazman said he watched as a third activist, Fort’s niece-in-law, was attacked by one officer. As he was being tackled to the ground, he saw "them trying to put this... baton around this girl's neck, and I said take that baton from off her neck. I told her take her damn hands off the girl. And none of the officers were trying to restrain her. When I said that everyone just froze up," Boazman said.
A fourth person was escorted out by police, Fort said.
"They beat me down, cussed me down. It's a police state. What they were doing is using brute force to keep people from the meeting. It was a public meeting, and they were willing to use brute force. The question is, what did they have to hide?” Fort told Atlanta Progressive News.
"It's kind of a fascist move. I'm not surprised at what people will do to keep power. I'm not surprised of the evil men will do," Fort said.
The Hospital Authority’s resolution will, among other actions, create a nonprofit corporation to take over the Hospital, much to the dismay of hundreds of citizens present for the vote.
But even angry public denunciations and demonstrations could not stem the Chamber of Commerce’s push, which–with the support of the Atlanta Journal-Constitution editorial board, Emory University, and Morehouse Colleges–created the appearance of an inevitable tide towards privatization.
Yet Authority Members sought to deflect responsibility for their votes.
"In three weeks, our cash position would have been zero," Vice Chairman Christopher Edwards said. "You have to make the best decisions you can."
"It may not be the best resolution but this is the only thing that can keep the doors open," Member Thomas Dortch said. "Don’t blame us. If folks don’t put money on the table, it’s not going to happen. Don’t convict us."
The Grady Memorial Hospital Corporation would be a tax-exempt 501(c)(3) corporation with a 17-member Board to govern Grady Memorial Hospital.
The Corporation will consist of at least four members from the current Authority. The Authority Chairperson will appoint the other members. It is unclear whom those other members will be or from what professions or circumstances they will come.
The Authority will still exist to retain ownership of the real estate and the Authority must give its consent "for any significant curtailment of the current major service lines or historic mission of Grady Hospital."
Creation of a nonprofit corporation comes with other special conditions. Members of the business, charitable, and philanthropic community must provide a written commitment to deliver at least $200 million in capital funds.
Unnamed members of the business community are said to have already promised to deliver $200 million to Grady upon the change to a 501(c)(3), as well as to engage in a fundraising campaign to raise an additional $100 million, which must also be confirmed in writing.
The Authority and Corporation must also prepare, execute, and deliver a lease agreement "in order to lease certain assets of the [Grady Health] System to the Corporation, which will assume certain liabilities of the System."
The resolution goes on to say, "The lease agreement would only be executed after completion of the statutorily required public hearings scheduled for Dec. 27, 2007, and no later than Dec. 31, 2007."
The business community would make a payment of no less than $50 million in cash or in escrow on or before the execution of the lease agreement. This would mark the first installment of a four-year payment plan for the $200 million.
The resolution urges the State of Georgia to enact legislation that would appropriate $30 million annually to Grady and to take measures to fund the Statewide Trauma Network.
Emory and Morehouse medical schools must provide written confirmation to the Authority of their commitment to continue training doctors at Grady, willingness to negotiate with the Authority to restructure all outstanding obligations owed by Grady, and willingness to renegotiate current contracts between the parties.
The Authority wants this confirmation no later than the execution and delivery of the lease agreement.
A DRAMATIC AFTERNOON
Several dozen protestors with the Grady Coalition, American Federation of State, County, and Municipal Employees (AFSCME), and other groups rallied in front of Grady earlier in the day to denounce any move to create a nonprofit corporation.
When these protestors moved into the hospital with the intent of letting their voice be heard at the Authority meeting, security did not allow them in.
Grady security officers informed those gathered that the Authority was holding its Executive Session and that the public was not allowed in.
Protestors were forced to wait over an hour and a half in two separate corridors until 3:30 p.m., the scheduled start time.
When that time passed and protestors had still not gained access, tempers began to boil over.
Fort and Boazman apparently tried to barge into the Authority’s session and that’s when they were subsequently physically handled by security. Protestors howled their disapproval.
After prolonged shouting matches and more waiting, word came around 4 p.m. the meeting would be moved to the Steiner Auditorium across the street so that everyone could attend.
Forty-five minutes after the meeting should have started, Chairwoman Pam Stephenson brought the session to order.
Members dealt with other business before Lewis Horne, an attorney with the Troutman Sanders law firm, read the resolution.
When no member had anything to say, the Authority was ready to vote. The audience shouted in disgust and demanded the public be allowed to speak before the vote.
Just when it seemed a riot might break out, Stephenson finally allowed a comment period and for the next hour and a half, citizens peppered the Authority with harsh criticisms.
"We didn’t come this far to have Uncle Toms sell out the least of these," Boazman, who in addition to Fort was allowed back in for the hearing, said.
"The State of Georgia created this problem," Rev. Tim McDonald, of the First Iconium Baptist Church, said. "This is extortion. The Chamber of Commerce is guilty of extortion. You didn’t create this problem."
"Who are they?" Nancy Lenk, deputy director of AFSCME Local 1644, asked. "We don’t even know the names of the people we’re signing the hospital away to."
About the author:
Jonathan Springston is a Senior Staff Writer for Atlanta Progressive News and may be reached at jonathan@atlantaprogressivenews.com
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