BTB Report - The next steps for Grady
May 9, 2008
The Commerce Club's New Century Forum hosted a lunch May 6 examining the next steps for Grady
Hospital. Speakers Pete Correll and Michael Russell, both Board members of The Commerce Club,
co-chaired the Metro Atlanta Chamber of Commerce Greater Grady Task Force in 2007 and currently
serve on the hospital's new Board of Directors.
Both leaders stressed that Grady Hospital's road to recovery will be a long one, saying
there is no one quick fix for the healthcare provider. Necessary steps include the lease
commencement from the current hospital board, an increase in funding from other metro-Atlanta
counties, more state funding, renegotiation of all major contracts including those with Emory and
Morehouse Schools of Medicine, a new CEO and more insured patients seeking treatment for a variety
of healthcare needs (known as the payer mix).
The most important step for saving Grady Hospital, according to Correll and Russell, is to
recruit a world-class, experienced CEO. The search is on, and the Board hopes to have a
candidate in place this summer.
Both men say the key to a diversified payer mix is increasing profitable practices,
including cardiac and orthopedics, upgrading and repairing equipment and facilities, and improving
Grady's reputation. Currently, Correll said, many Atlanta residents may opt to have heart
stints or orthopedic surgery at another Atlanta hospital even if they live closer to Grady.
He says it will be necessary to move the hospital to the forefront of Atlanta medical services to
attract patients to voluntarily choose Grady for medical services.
Correll also stressed that cooperation will be needed among all Atlanta hospitals to move
Grady to solid financial footing. The closing of Grady Hospital would not benefit other local
hospitals, and in fact, could mean loss of revenue for them. Currently, Grady admits
approximately 30,000 overnight patients each year. The average cost to treat an overnight patient
is $17,000 while typically only $8,500 of each patient bill is actually collected by the
hospital. The unpaid $8,500 means the more patients Grady treats, the more money it
loses. These patients will require treatment somewhere, so it is in all the local hospitals'
best interest for Grady to stay open.
Notable attendees of the luncheon included: Suzanne Marie Begin, Executive Director of Henry
W. Grady Health System Foundation; Charles Green, President of Sunrise Bank of Atlanta; Sheffield
Hale, Chief Counsel of American Cancer Society Inc.; Dr. Leon Haley, Deputy SVP Medical Affairs of
Grady Health System/Emory University; Lem Hewes, Partner of King & Spalding (retired) and
member of Grady Foundation Board of Directors; William Moore, President and CEO of Atlanta Medical
Center; R. Timothy Stack, President and CEO of Piedmont Hospital; and William J. Todd, President
and CEO of the Georgia Cancer Coalition.
Metro Atlanta Chamber of Commerce and Shaheen & Company were table sponsors.
About The Commerce Club & The New Century Forum
The Commerce Club was founded in 1960 to provide Atlanta with a professional club suited to
serve a diverse group of civic and business leaders. It was the only place leaders could congregate
without regard of race or religion to conduct business or grapple with the issues of the day.
Today, the Club continues this spirit and tradition through the New Century Forum, a distinct
gathering where leaders can meet, engage, and build a better Atlanta through dialogue, respect, and
friendship. The New Century Forum facilitates an exchange of ideas with regular events where
members can meet and hear community, political, and social leaders discuss varying viewpoints about
the world around us.