Grady Memorial Hospital

Grady CEO seeks turnaround, check by check

Anne Zieger — Wed, 10 Sep 2008 02:25:59 -0400

Most hospital CEOs don't get involved in the mundane work of auditing routine payments to vendors, particularly if they're running a sprawling facility with a $740 million budget and 600 beds. But not every hospital CEO has to run a facility that's been millions in the red for a decade or so, either. So when Michael Young took over as CEO at Atlanta's financially-strapped Grady Memorial Hospital, he decided to take a hands-on approach to money that few CEOs would consider.

Beginning a few days before he started, Young hunkered down and reviewed every check over $1,000 that the hospital had issued to vendors during one week in July. In reviewing the checks, which added up to about $1.7 million, he didn't run into any bright-red flags--certainly nothing that could single-handedly turn around a $40 million deficit--but he did run into some short-term expenses that didn't look right. For example, he found a $100,000 one-week payment for temporary employees, including nurses and X-ray technicians. He's started cutting back on temp use dramatically.

Nonetheless, the exercise definitely was useful, he told the Atlanta Journal-Constitution. "You start asking questions," said Young. "You decide if there are contracts you don't want to pay for anymore, or services you want to bid out again." And even if it doesn't change the hospital's contracting strategy, this kind of mini-audit is helpful in tweaking operations, he notes. For example, during one such review, he noted that Grade seemed to have excessive legal fees, and brought some malpractice reviews in-house. Young intends to do such an audit every week.

To learn more about Young's approach:
- read this Atlanta Journal-Constitution piece

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IRS releases new Form 990 instructions; PwC struggles to help Grady rebuild cash flow;

Anne Zieger — Wed, 27 Aug 2008 05:03:14 -0400

> The IRS has officially released new instructions for Form 990, including tools that make it easier to answer questions, line by line. Article

> While consultants with PriceWaterhouseCoopers are doing their best to make over cash flow Atlanta's Grady Memorial Hospital, it's proving to be a very difficult job, thanks to, among other problems, resistance from staff, bad technology and worker shortages. Article

> Nearly 80 million U.S. adults have medical bill problems, or are working to pay off medical debt, according to a new Commonwealth Fund report. Article

> Des Moines, IA-based Broadlawns Medical Center has announced that patients will no longer receive free medication unless their income is below the federal poverty level. The public hospital had previously given free medications to patients with no insurance and those on state insurance for low-income patients. Article

And Finally... If you think even a dog could see the flaws in King County, WA's voter registration system, you might be right. Article

ALSO NOTED: Study says nonprofit systems have higher quality scores; Grady gets $50 million as new board comes online; and much

Wed, 21 May 2008 06:59:50 -0400

> Ready for a conclusion that's likely to raise some hackles? A new study published in the Joint Commission Journal on Quality and Patient Safety suggests that not-for-profit health systems have higher quality scores than for-profits. Article

> Atlanta's Grady Memorial Hospital has gotten a $50 million cash infusion, the first payment of a total of $200 million, as a new nonprofit board takes over operations for the public hospital. Article

> Physicians with Tarrant County, Texas-based JPS Health Network, the county's public hospital system, are asking the county to study whether co-pays are a barrier to patient care. Article

> In an effort to cut costs by $17 million, Cleveland's MetroHealth Medical Center is laying off 73 people. This follows the hospital's first-quarter loss of $8 million. Article

And Finally... Hey, he's The Boss. How could it be too loud? Article

GA charity hospital saved by record $200 million gift

Wed, 09 Apr 2008 06:59:56 -0400

Readers of sister publication FierceHealthcare have doubtless caught occasional bulletins on the health of Grady Memorial Hospital, one of the nation's largest charity hospitals. The hospital, which is staffed by doctors from the Emory University School of Medicine and Morehouse School of Medicine, is the region's only Level 1 trauma center. However, about 30 percent of its patients are uninsured, and 40 percent are covered by Medicaid or Medicare, both money-losers for many services. Last year it was $48 million in the red, and on the verge of losing its accreditation after a poor CMS review. However, a large new gift may give it some hope, if not a completely new lease on life. The hospital will soon receive $200 million from a private foundation with ties to Coca-Cola, the largest gift on record to a single public hospital according to the Center on Philanthropy at Indiana University.

Even with the gift, the facility faces many continuing challenges. For one thing, state lawmakers didn't approve a $10 fee on license renewals that would have gone to funding the state's trauma network, though it did set aside moneys that will include $24 million for Grady. Also, a new Bush administration rule could deny Grady and other hospitals badly-needed disproportionate share funds. In the mean time, however, the hospital seems to be in a position to stay open.

To learn more about Grady's problems:
- read this New York Times article

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