Grady Hospital bracing for multi-million-dollar investment after AMC closure

Grady could receive between $100-200 million, per sources
Grady Hospital bracing for mega investment
Published: Sep. 13, 2022 at 4:33 PM EDT
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ATLANTA, Ga. (CBS46) - Grady Memorial Hospital is set to receive a huge one-time special payment later this week, between $100 and 200 million, according to multiple sources with knowledge of the ongoing negotiations.

The payment would come from state-allocated dollars and would help stabilize Grady in light of the impending closure of the Atlanta Medical Center on Nov. 1.

COMPLETE COVERAGE: Atlanta Medical Center closing in downtown Atlanta | What does it mean?

AMC’s closure, with roughly 450 beds, leaves Atlanta with just one level-one trauma center.

Grady confirmed the ongoing negotiations on Tuesday. A formal announcement is expected later this week.

“We are in discussions with the state and other elected officials on the funds necessary to support Grady’s infrastructure needs and operations due to AMC’s impending closure. We hope to have a resolution this week,” according to a statement from hospital administrators to CBS46 News.

On Monday, Gov. Brian Kemp met with Atlanta Mayor Andre Dickens, along with DeKalb County CEO Michael Thurmond and Fulton County Commissioner Robb Pitts.

“[I’m] Proud of the fact that collectively at the state and local level, we were able to come together and come up with a plan that I think will have a major impact to reduce the potential loss of healthcare in metro Atlanta,” said Thurmond, in an interview with CBS46 on Tuesday.

Thurmond would not provide the exact investment amount headed to Grady Hospital.

“It is north of $100 million,” Thurmond said. “It’s a significant investment that I think will have a major impact on restoring the safety net that’s been broken.”

Mayor Andre Dickens also confirmed he was involved in the financial discussions.

“We’ve been talking with Grady, Emory, Piedmont, other healthcare providers, even Morehouse School of Medicine, just various folks to see how we can fill this void, this gap,” said Dickens, in an interview with CBS46 on Tuesday. “And so we’re looking for dollars and capacity for beds after Nov. 1. We’re looking for temporary as well as permanent beds and money to do that.”

Dickens said there is a need to find an additional 250 beds in Atlanta to offset the closure of AMC.

On Tuesday, the Grady Memorial Hospital Corporation Board of Directors held its first board meeting since WellStar announced its closing of AMC.

It was the first in-person board meeting for Grady officials since November 2019.

The meeting was open to the public. CBS46 News was the only TV station in attendance.

As part of the hospital’s committee breakdowns, hospital officials said they are pursuing a capital project to increase the hospital’s bed capacity.

Grady’s president and chairman both declined to present their official reports.

Officials said that during the executive session portion of the meeting, the Board had a lengthy conversation surrounding the financial challenges facing the healthcare market across the country.

Grady’s next Board meeting is in mid-December.

“The loss of one hospital, the loss of an emergency room on the southside. If you look at all of these events, you’re beginning to see we’re moving in a way that might create a crisis shortly,” said Thurmond.