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DEL.ICIO.USSenate researcher: Contract guarantees that “Grady is perpetually indebted to Emory”
The Atlanta Journal-Constitution
An attorney within the research arm of the state Senate has gone through the contract between Grady Memorial Hospital and the Emory University School of Medicine.
He didn’t like what he saw, and said so in a five-page memo to the top Republicans within the Senate, including Lt. Gov. Casey Cagle and President pro tem Eric Johnson of Savannah.
See it here.
The examination was made at the request of state Sen. David Shafer (R-Duluth), who’s been advocating scrutiny of the relationship between the two venerated Atlanta institutions — before any state money goes toward a rescue of the indebted hospital.
“It could be argued that the practical effect of this agreement is to create a situation in which Grady is perpetually indebted to Emory in such a manner and at a level that is unilaterally determined by Emory,” writes attorney Brian Scott Johnson.
Here are bits and pieces of his summary:
“Grady is bound into an unusually long contractual relationship in which medical services are performed at the downtown hospital but the benefits flow back to Druid Hills. Emory obtains the use and benefit of a large, urban teaching hospital providing a large array of teaching opportunities.
“Grady’s medical leadership either originates from Emory or is subject to a practical veto; its spokesman is required to make joint statements with and approved by Emory whenever possible.
“It is Grady’s lone burden to assume malpractice liability of Emory’s physicians and indemnify Emory against all liability. Grady is required to pay Emory for the cost of Emory faculty physicians at rates that both parties agree that Grady cannot afford….”
Comments
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By RJ
September 12, 2007 7:27 PM | Link to this
This revelation should alter the nature and substance of debate about the crisis. I am eagerly waiting to see if it does within and among the political leadership at all levels.
By Tidewater
September 12, 2007 8:02 PM | Link to this
What has happened to all the AJC’s investigative reporters? Why is the AJC not unearthing any of this material?
By Uh huh
September 12, 2007 8:57 PM | Link to this
The so-called Grady bailout is starting to look more like an Emory bailout. Not sure why the taxpayers are bailing out a medical school with a multi-billion dollar endowment, especially one that has taken such unfair advantage of a charity hospital like Grady.
By Jason
September 12, 2007 9:08 PM | Link to this
Sounds like an institutional version of “The rich get richer and the poor get poorer”.
By Taxpayer Dough
September 13, 2007 4:05 AM | Link to this
So maybe we don’t need $15 million and $5 million from Fulton & DeKalb taxpayers to fix this mess??!! No one, no one involved in this mess has stood up for Fulton & DeKalb taxpayers. Pam Stephenson is especially clueless (nice job hiring a seperate PR firm just for the Grady Board).
And no one involved brings the 1993 bond issue to fore, where millions were wasted, with even some criminal charges brought. Dump Emory if necessary. Just fix this mess without hitting up us taxpayers again & again.
By Carismar
September 13, 2007 9:40 AM | Link to this
Taxpayer Dough, you nailed it. Every taxpayer in Fulton and Dekalb is shelling out hundreds every year to keep Grady solvent. They need an effective administration to negotiate with Emory, control costs, and collect from those deadbeat patients who can afford to pay but don’t.
By Observer
September 13, 2007 4:52 PM | Link to this
Well, Grady needs better administration for sure. This is part of the problem. If the billing and collection are subpar and inadequate, little to no money will be collected. Emory provides physicians and the salaries for these physicians. Few people want to work for free. Emory has subsidized a lot of this for decades so it is hard to say how unfair this situation is for Grady. Atlanta citizens have greatly benefited from this arrangement particularly folks who do not pay for medical care. And finally, let’s not forget the medico-legal climate in this country that forces everybody to practice defensive medicine to the tune of millions of dollars of unnecessary tests and procedures. There is lot to be fixed here beyond just Emory-Grady contracts.
By Horace
September 13, 2007 7:09 PM | Link to this
Observer — Emory has a very sweet deal. Emory gets the use of Grady as a teaching hospital. Plus, Grady actually pays Emory to teach its students at Grady. And when Emory docs treat Grady patients, Emory bills the patients directly. Grady does not get a dime. Even sweeter for Emory, if an Emory doctor malpractices a patient, Grady assumes all liability.
By Horace
September 13, 2007 7:10 PM | Link to this
Emory gets a free teaching hospital and they get paid by the taxpayers to teach their students! Emory gets to bill Grady patients directly for their services, without having to share the fees. And Grady assumes all liability for Emory’s mistakes.
By Tired of the Whining
September 14, 2007 8:11 AM | Link to this
Grady - “Run it Like a Business”
Get the self-serving political opportunists from Fulton and Dekalb Counties out of Grady’s governing body. Grady is too valuable for them to continue to screw up this wonderful institution the way they have Fulton and Dekalb Counties.
Grady – “Run it Like a Business”
By They Won't Like It
September 14, 2007 9:52 AM | Link to this
But if Grady cleans up its act and is run like a business…then Fulton Co. commissioners Bill Edwards, Emma Darnell and Nancy Boxill won’t be able to hand out jobs and sweet preferred vendor contracts. What will happen to their power base???
Then Bill, Emma and Nancy will want to start selling parks again.
By Tired of the Whining
September 14, 2007 2:40 PM | Link to this
Grady – “Run it Like a Business”
I hear Bill Campbell’s cell will come open in 18-24 months…maybe those three can keep each other company in their buddy’s former digs.
Let’s print bumper stickers with Grady – “Run it Like a Business” and place them on all the cars in the capital parking lot and on the cars at the next Fulton and Dekalb commission meetings! Wait, can the commissioners read…they did likely attend Fulton and Dekalb Co schools.
Hey, Casey Cagle may volunteer to apply his own bumper sticker…if he puts it on right side up it would be the only thing he did right that day.