Fulton commission to give Grady $10 million to meet payroll

By D.L. Bennett

The Atlanta Journal-Constitution

A deeply divided Fulton County Commission agreed Wednesday to come to the aid of cash-strapped Grady Memorial Hospital with $10 million officials say is needed for the hospital to meet payroll next month.

Michael Young, Grady’s chief executive officer, said without immediate cash from Fulton, the hospital’s line of credit with Wachovia Bank would be used up by mid-October and the system’s tenuous financial condition would collapse.

He complained Fulton had not paid Grady for indigent care since May, leaving the hospital more than $10 million short. That has impacted Grady’s ability to pay its bills.

“Our cash flow is historically tight,” Young said, noting Grady’s lost about $100 million a year.

The Grady payment passed in a 4-3 vote only after commissioners argued so sharply that the meeting had to be suspended.

Commissioners Tom Lowe and Emma Darnell, two longtime, bitter rivals who often trade barbs, went toe to toe verbally for about five minutes before a desperate Chairman John Eaves declared a five-minute break.

Darnell was in the midst of a lengthy speech about Grady when Lowe tried to break in.

“She’s held the floor for 29 minutes,“ Lowe complained.

Incensed, Darnell shot back, “That’s bad home training. Just a thug, just a thug. That’s all he is.“

She later warned Lowe to “get to Grady or shut up.”

Lowe appealed to Eaves to rein in Darnell rather than let her speak so long.

“Why don’t you stop me?” Darnell shot back.

“Madam Darnell, you aren’t worth stopping,” Lowe finished before the session dissolved.

The issue was also hot between Grady officials and commissioners who complained payments have been slow only because the hospital has failed to provide the information Fulton needs to make payments.

Commissioners Robb Pitts and Nancy Boxill also blasted Grady officials for “threatening” calls and letters warning Grady might shut down or some of its services could be ended if Fulton didn’t come through with money immediately.

“The Board of Commissioners won’t be choosing to open or close a clinic,” Boxill said. “That would be a choice made by the corporation. I won’t be held hostage by those kind of phone calls. You are not working with the board. You are working against us.”

In the county budget that took effect Jan. 1, commissioners set aside $76.5 million for Grady. That included $16.5 million for debt payments plus $60 million for operations.

So far though, Fulton has paid Grady only about $15 million of the operation money — a quarter of the allotment after two-thirds of the year. Payments have been slowed as Grady and county officials have squabbled over documentation needed before Fulton will make payments and when it must be submitted.

Wednesday’s decision would push the county’s payment to $25 million so far.

Grady’s annual budget is about $730 million. DeKalb County kicks in about $20 million.