New Grady CEO faces financial, political hurdles

By Misty Williams

The Atlanta Journal-Constitution

From gearing up for the health care overhaul to dealing with rising numbers of uninsured patients, John Haupert will confront an array of hurdles as Grady Health System’s new chief executive officer.

While they are substantial, the challenges facing Grady aren’t new territory for Haupert, who currently serves as executive vice president and chief operating officer of Parkland Health & Hospital System in Dallas, one of the nation’s largest safety net hospitals.

A team of Grady corporate board members spent months sifting through hundreds of applications following the resignation of former CEO Michael Young earlier this year.

“Grady is not just an occupation,” said board chairman Pete Correll. "It is a mission, a calling.”

Under a three-year contract, Haupert’s base salary will total $615,000 with a maximum 30 percent yearly bonus based on performance, Correll said. He will take over in early October if his appointment is approved by the full board, which will vote Aug. 8. The Arkansas native is currently overseeing the construction of a $1.3 billion, 862-bed replacement hospital in Dallas.

Haupert has dealt with many of the same issues that Grady has while at Parkland, which is about 20 percent larger, Correll said. The public health system in Dallas provided nearly $600 million in uncompensated care in fiscal 2010 and saw emergency department visits jump 21 percent to more than 170,000 last year, according to hospital data.

In 2009, Grady turned its first profit in years after business and community leaders joined together to save it from financial collapse. The hospital, which spends more than $200 million caring for the uninsured, has recently faced several setbacks, however, including a $20 million cut in local and federal dollars. Officials have cut more than 200 jobs, as well as upped prescription drug co-pays and shut down two neighborhood clinics this year.

Grady saw an $18 million shortfall in the first six months of 2011, Correll said, adding that he hopes more layoffs won’t be necessary this year if there are no more funding cuts.

“We have to secure Grady’s financial future,” Haupert said.

Looking at ways to bring in more revenue to run day-to-day operations will be a priority for Haupert. Improving patient quality and satisfaction will also be critical, especially with the roll-out of the health care law, Haupert said.

With the overhaul and shifting marketplace, hospitals will be paid based not just on volume of services but quality, said Kevin Bloye, a spokesman for the Georgia Hospital Association. Working with elected officials and business leaders to make sure Grady is getting maximum funding will also be crucial for Haupert, he said.

“His position, unlike any other hospital in the state, is certainly a highly political one,” Bloye said. “He’s going to have to be a bridge builder.”

Haupert needs to ensure Grady maintains its mission of serving the poor, as well as reaching out to the community, said state Sen. Vincent Fort, D-Atlanta, a leader of the Grady Coalition patient advocacy group. “If the community doesn’t trust him, the elected officials aren’t going to trust him," he said.

Haupert, who describes his leadership style as open, accessible and transparent, said he wants to hear from the community and quickly get up to speed with Grady's issues.

“I very much want to be a student of the current situation,” he said. “I don’t want to come in with preconceived notions and assumptions.”