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RESOLUTION SUPPORTING THE GREATER GRADY TASK FORCE

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									1     RESOLUTION SUPPORTING THE GREATER GRADY TASK FORCE'S
2     RECOMMENDATIONS REGARDING GRADY HEALTH SYSTEM AND
3        PROVIDING FOR ADDITIONAL SHORT-TERM FINANCIAL
4              ASSISTANCE TO GRADY HEALTH SYSTEM
5
 6          WHEREAS, the Fulton-DeKalb Hospital Authority manages Grady Health

 7   System, which includes Henry W. Grady Memorial Hospital; and

 8          WHEREAS, the Fulton County Board of Commissioners has been a strong

 9   supporter of Grady Health System for many decades, contributing millions of dollars

10   each year to support Grady Health System's treatment of indigent Fulton County

11   residents and to pay debt service on outstanding Authority bonds; and

12          WHEREAS, Grady Health System is a vital asset and critical health resource to

13   the citizens of Fulton County and the State of Georgia; and

14          WHEREAS, Grady Health System is currently losing approximately S8 million

15   per month; and

16          WHEREAS, the situation at Grady Health System is at a critical juncture and

17   requires both short and long-term plans for the System's continued operation; and

18          WHEREAS, if Grady Health System closes, the burden placed upon area

19   hospitals to handle the influx of patients could jeopardize patient care throughout

20   Metropolitan Atlanta and the State; and

21          WHEREAS, if Grady Health System closes, a vital training and health care

22   resource would be taken from the citizens of Fulton County and the State; and

23          WHEREAS, at the request of the Fulton-DeKalb Hospital Authority, the Metro

24   Chamber of Commerce formed the Greater Grady Task Force to identify and assess a

25   range of issues threatening the long-term viability of the Grady Health System; and
 1          WHEREAS, the Greater Grady Task Force is comprised of 17 key and diverse

 2   business leaders who recognize that Grady Health System is a critical health resource for

 3   our region and the State; and

 4          WHEREAS,        the      Greater   Grady Task   Force has made       a series of

 5   recommendations to address the short and long-term problems as well as the overall

 6   governance of Grady Health System; and

 7          WHEREAS, the Greater Grady Task Force recommends that the governance

 8   structure at Grady Health System change from its current structure to one which is

 9   operated as a nonprofit entity pursuant to section 501(c)(3) of the Internal Revenue Code;

10   and

11          WHEREAS, the Greater Grady Task Force recommends that for the short term,

12   steps should be taken to obtain bridge cash from various sources throughout the State,

13   that contracts with third parties should be examined and possibly renegotiated, and that

14   unencumbered real estate holdings be utilized to generate income; and

15          WHEREAS, the Greater Grady Task Force recommends that for the long term,

16   steps should be taken to obtain additional revenue sources, that funding from counties

17   other than Fulton and DeKalb should be sought, and that Grady Health System should

18   work with the State to obtain an increase in the state-funded allowance for medical care;

19   and

20          WHEREAS, Commissioners from both Fulton and DeKalb Counties and the

21   DeKalb Chief Executive Officer met as a committee to review the Grady Health System

22   and the recommendation of the Greater Grady Task Force; and
 1            WHEREAS, the Fulton County Board of Commissioners believes that support of

 2   both the Grady Health System and the recommendations of the Greater Grady Task Force

 3   are in the best interest of the public health, safety and welfare;

 4            NOW THEREFORE, BE IT RESOLVED, that the Board of Commissioners

 5   hereby states its support for the recommendations and work of the Greater Grady Task

 6   Force.

 7            BE IT FURTHER RESOLVED, that the Board of Commissioners hereby states

 8   its intention to provide Grady Health System with additional funding in the amount of

 9   Fifteen Million Dollars ($15,000,000.00) to address the System's emergency short-term

10   needs, subject to the following conditions and in the following installments:

11               1. Upon the Fulton-DeKalb Hospital Authority Board of Trustees' formal

12                   vote to proceed with a change in the governance structure at Grady Health

13                   System from its current structure to one in which the System is operated

14                   by a nonprofit, 501(c)(3) corporation, Fulton County will provide Grady

15                   Health System the amount of $5,000,000.00.

16               2. Upon the Board of Trustees' formation of a transition team to move

17                   Grady Health System towards the new governance structure, Fulton

18                   County will provide Grady Health System the amount of $ 1,000,000.00.

19               3. Upon the selection and installation of the Board of Directors of a new

20                   non-profit corporation formed for the purpose of managing Grady Health

21                   System, Fulton County will provide Grady Health System the amount of

22                   $1,000,000.00.
 1               4. Upon holding of the advance hearings concerning the proposed

 2                   restructuring as required by O.C.G.A. § 31-7-74.3, Fulton County will

 3                   provide Grady Health System the amount of $1,000,000.00.

 4               5. Upon the development of a lease agreement and implementation of

 5                   internal organizational changes (including changes in accounting,

 6                   reimbursement, Hcensures and existing contracts) necessitated by the

 7                   restructuring, Fulton County will provide Grady Health System the

 8                   amount of $1,000,000.00.

 9               6. Upon the Board of Trustees' final authorization of the restructuring and

10                   execution of the lease to the new non-profit corporation, Fulton County

11                   will provide Grady Health System the amount of $1,000,000.00.

12               7. Upon obtaining legal, accounting, and regulatory approvals qualifying the

13                   non-profit corporation as tax-exempt under Section 501(c)(3) of the

14                   Internal Revenue Code, Fulton County will provide Grady Health System

15                   the amount of $5,000,000.00.

16          BE IT FURTHER RESOLVED, that, in the event that the Authority terminates

17   the above restructuring process prior to completion, or in the event that all of the steps

18   enumerated above in paragraphs 1 through 7 are not completed within the timeframes set

19 forth below, it is the intention of the Board of Commissioners to deduct the total of

20   payments made under the above installment plan from the Grady Health System

21   appropriation in the next Fulton County budget cycle. The following timeframes are

22   applicable to the paragraphs listed:
 1              •   Paragraphs 1 and 2: to be completed within 60 days of adoption of this

 2                  Resolution;

 3              •   Paragraphs 3 and 4: to be completed within 90 days of adoption of this

 4                  Resolution;

 5              •   Paragraph 5: to be completed within 120 days of adoption of this

 6                  Resolution;

 7              •   Paragraph 6: to be completed within 150 days of adoption of this

 8                  Resolution; and

 9              •   Paragraph 7: to be completed within 270 days of adoption of this

10                  Resolution.

11          BE IT FURTHER RESOLVED, that the above payments are further contingent

12   upon the Authority's execution and approval of an intergovernmental agreement

13   memorializing the above provisions of this Resolution, which intergovernmental

14   agreement is hereby authorized.

15          BE IT FURTHER RESOLVED, that the above payments are further contingent

16   upon the Authority's compliance with the agreement entitled "Protocol Agreement —

17   Budget Development Process Between the Fulton-DcK.alb Hospital Authority and Fulton

18   and DeKalb Counties" (Fulton County Board of Commissioners Agenda Item 92-RC-

19   611, approved Dec. 16, 1992).

20          BE IT FURTHER RESOLVED, that each installment payment described above

21   shall be subject to review and confirmation by the Fulton County Manager, Finance

22   Director and County Attorney to ensure that each condition precedent has been met.
 1             BE IT FURTHER RESOLVED, that the County Manager is directed to prepare

 2   and present such budget amendments/soundings as are necessary to ensure that the

 3   above-referenced funds are available for payment upon achievement of the steps outlined

 4   above.

 5             BE     IT     FURTHER            RESOLVED, that                   the Fulton County   Board   of

 6   Commissioners will review its annual contribution to Grady Health System upon request

 7   and receipt of the Grady Health System annual report and annual independent audit.

 8             BE IT FURTHER RESOLVED, that the Clerk to the Commission is directed to

 9   forward a copy of this Resolution to the Chairperson and Members of the Board of

10   Trustees of the Fulton-DeKalb Hospital Authority.

11             BE IT FURTHER RESOLVED, that this Resolution shall become effective

12   when adopted, and that all resolutions and parts of resolutions in conflict with this

13   Resolution are hereby repealed to the extent of the conflict.

14            PASSED AND ADOPTED by the Board of Commissioners of Fulton County,

15   Georgia, this          day of                                 , 2007.

16                                                              SPONSORED BY:
17
18
19
20                                                              John H. Eaves, Chairman
21                                                              District 1. At-Large
22
23
24
25                                                              Lynne Riley, Commissioner
26                                                              District 3
27
28   ATTEST:                                          •         APPROVED AS TO FORM:
29
30
31   Mark Massey, Clerk to the Commission                       Gerry L. Clark, County Attorney
32   P1 CAPMjeclyBOO.Grady'Task-Fnrcc-rraommcndalions-cmloise   (je-]r)-8.9.07.res.doc

								
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