Grady and Emory.

I was forwarded an article in Insider Advantage regarding Grady (since it’s restricted content I can’t link to it) . The jist of the article is this: letters have been circulating among Senate leaders claiming much of the proposed $100 million bailout loan would actually go to Emory. In addition, an audit was conducted (at Grady) over two years ago showing Grady had been overcharged by vendors who stand to benefit from the proposed bailout. The letter writers (former Grady Board Member William Loughrey , and Senator David Shafer) say these issues should be addressed before a bailout takes place.

Just how much has Grady been overcharged over the last few years? Would refunding the overcharged amount provide Grady the funds it needs? Why is Emory overcharging Grady and what are they going to do to prevent it from happening again?

As I posted here Grady’s broke, Emory certainly is not with some $5 billion in the bank. Perhaps Emory should be bailing out Grady not the taxpayers.

UPDATE: I should have said Emory has allegedly overcharged Grady. Also, it’s Loughrey’s letter which brings to light the audit and the alleged overcharging. Shafer’s letter expresses concern about these allegations, and says the audit issue must be resolved and that a bailout should not be considered for a Grady vendor with unresolved audit issues.

The AJC has Loughrey’s letter and Chris posted a link here to Galloway’s report on the matter.


  1. Harry says:

    Grady and MARTA are both examples of the inmates running the asylum – organizations that are managed by political patronage. Right now, blacks have the political power in Fulton and DeKalb, and they must exercise it with even-handedness. In 2003, the Director of the Fulton County Public Library System was convicted in the U.S. Court of Appeals for reverse discrimination. And for another example, need I bring up the name Vernon Jones? Yes, discrimination happens on both sides. I suspect certain members of the MARTA board are trying to restrict the selection process to one (black female) individual from a much smaller transit system, who just so happens to be the only one that meets their “requirements”.

  2. bird says:


    Before you go smearing Emory, what proof do you have they it overcharged Grady. I’ve always found Emory to be a very responsible organization.

  3. griftdrift says:

    Bird, its the claim of a former board member who was recently ousted. Jim Galloway of the AJC has been very careful to couch that none of it is confirmed. For me personally? Well, I’ll just say I wouldn’t be surprised.

  4. Chris says:


    Jim Galloway has the letter.

    Former Grady trustee Bill Loughrey accuses Emory of siphoning paying patients from Grady to its own hospitals, particularly Crawford Long. He says a Deloit study shows that Emory has deliberately understaffed and underfunded the profitable service lines at Grady that complete with Crawford Long.

    Loughrey also cites an independent audit showing Emory has been overcharging Grady and accuses the Grady board of failing to recover the overcharges and keeping the audit secret at Emory’s request. Apparently $40 million or more of Grady’s budget deficit is allegedly owed to Emory. This figure is now obviously in dispute

    David Shafer is right when he demanded that no taxpayer funded bailout benefit Emory.

  5. Icarus says:

    I gave Fulton Commissioner Rob Pitts a hard time on here a few weeks ago when he floated the idea that Emory should forgive $60 Million in debt as part of the solution to solving Grady’s budget gap.

    If this audit has been circulating for 2 years behind the scenes, I’m wondering if the proposed debt forgiveness was a way for all sides to save face while working through the issues.

  6. Inside_Man says:

    There are perfectly good reasons to address most of the accusations in that letter that could be explained by someone with a basic understanding of finance. The CFO of Grady did a pretty damn good job in that meeting the House held today, if you caught it on the web. I suspect that this Emory nonsense is merely an attempt to extort some extra cash out of them so someone else will have to pony up less.

    Emory and Morehouse make tremendous annual, recurring contributions to Grady that are being ignored, contributions that run to the tune of $120 million every year.

    Those services at Grady may be understaffed…the reality is they are under utilized. No paying patient is going to go to Grady to get a cardiac catheterization when they can go a mile north and go to Crawford Long at no extra cost out-of-pocket.

  7. Inside_Man says:

    Senator Shafer’s grandstanding and loose use of the facts aren’t going to help this situation at all. He should be satisfied with getting to carry Casey’s Grady Bill.

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