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The Georgia Scroll
July 1998

The Grady Health System

"Recent Accomplishments are
the Road Map to the Future"

by P. Faith Carmichael, The Grady Health System

Grady Health System is the southeast’s largest public hospital system, with a 108-year history. In addition to the current 953 licensed beds at Grady Memorial Hospital, Grady Health System has expanded its healthcare programs to include Hughes Spalding Children’s Hospital with 82 licensed beds, 11 neighborhood primary care health centers, a 388-bed long-term nursing facility, 200 specialty clinics and a highly successful managed care organization, Grady Healthcare, Inc.

The Health System is the home of 10 Centers of Excellence, including the busiest Level One trauma center west of the Mississippi, the largest infectious disease center in the eastern United States, the Southeast’s Regional Burn Center and the nation’s most comprehensive health center for the treatment of HIV/AIDS.

The Grady Health System (GHS) is recognized as a leader, both in this country and abroad, by virtue of its outstanding facilities, and the preeminent care provided through close working relationships with the Emory University and Morehouse Schools of Medicine. In fact, in its internationally recognized role as a teaching hospital, GHS is responsible for training 25 percent of all physicians practicing medicine in Georgia.

The last year and a half has been an exciting and accomplished period for the Grady Health System. In fact, Grady’s achievements over the last 18 months have created a road map for the future success of the Health System.

Possibly the most significant of these accomplishments was the favorable Strategic Opportunity Assessment performed by APM, a well respected national healthcare consulting firm. In its report, APM defined GHS as an efficient provider of health services when compared to both local hospitals and other large, teaching healthcare facilities throughout the nation.

Grady earned an above average review from APM. In addition, to ensure Grady’s future success, APM also provided Grady with approximately 100 recommendations for improvements. By implementing APM’s recommendations, Grady could see an annual budget decrease of 54 million dollars per year, by the year 2002. Already Grady has begun implementing some of these recommendations; the first change will impact the health system’s pharmacy payment procedures. This policy change alone will save Grady more than two million dollars in 1998.

Grady secured its future in 1997 by implementing several new managed care initiatives. Most notably, Grady initiated a Publicly Funded Health Services Network (PHSN), now known as Grady Healthcare, Inc. (GHC). This landmark managed care program is the first of its kind in Georgia, and is now a model program for other hospitals and health systems around the country. Grady Healthcare, Inc. became a state licensed HMO on December 23, 1997. GHC is now the fastest growing managed care program in metro Atlanta, with more than 10,000 members choosing Grady’s HMO.

These accomplishments have helped the Health System chart a new course that will allow it to become an important player in the changing health care environment. GHS is committed to becoming one of the most progressive, state-of-the-art health care systems in the country.

Now, with an official stamp of efficiency and an impressive entrance into the managed care area, the Health System has embarked on a plan that will ensure it continues to be a leading health care provider and a good economic neighbor to the residents of Atlanta and Georgia.

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Last modified: June 22, 2001