Senator David Shafer

AUGUST 18, 2007
David Shafer's Senate Update

Reprinted from www.insideradvantagegeorgia.com
Proposed Bill By Sen. David Shafer Would Require Management Change At Grady Hospital

By Dick Pettys
InsiderAdvantage Georgia

(8/16/07) Legislation being circulated by Sen. David Shafer, R-Duluth, would require financially-troubled Grady Hospital to turn its day-to-day operations over to a nonprofit hospital management board, and it appears to have legs.

The proposed legislation drew immediate praise from Lt. Gov. Casey Cagle, who said he'd like to see the hospital take that step voluntarily but added, "We stand ready and willing to move in that direction should the governance shift not happen."

"Changing the form of governance is a necessary first step and not a 'bargaining chip' for state aid,” said Shafer, whose bill does not deal with funding.

Shafer argues that other county hospital authorities have formed nonprofit corporations for management because federal law gives nonprofit groups greater flexibility. He also argues that the nonprofit model is widely recognized as a more efficient way to operate urban public hospitals.

Shafer's bill establishes a nonprofit management corporation appointed by the local authority and state officials. It also includes strong conflict-of-interest provisions.

He has dubbed the bill “The Public Hospital Accountability Act of 2008” and has created a website to promote it. The website is located at www.reforminggrady.org.

Grady currently is run by a board appointed by the Fulton and DeKalb County commissions. Fulton County commissioners threw their support Wednesday behind the nonprofit model.

Shafer's bill comes on the heels of a demand by Cagle for Fulton and DeKalb Counties to voluntarily restructure the daily operations of Grady Hospital.

In a letter to Fulton County Commission Chairman John Eaves and DeKalb County CEO Vernon Jones, Cagle warned that the Senate would take up legislation forcing the change if no action was taken on the demand.

Cagle said Thursday: "I commend Senator Shafer for his work in moving forward and producing a bill to help resolve some of the issues Grady is facing. As I have stated before, it is absolutely imperative that Grady take the first necessary step by reforming its governance model and it is our hope that this will occur without the state's interference. However, we stand ready and willing to move in that direction should the governance shift not happen."

Reprinted with permission from www.insideradvantagegeorgia.com

Additional coverage of David's proposed legislation:

The Atlanta Journal-Constitution, Shafer shops bill mandating Grady go nonprofit
http://www.ajc.com/metro/content/shared-blogs/ajc/politicalinsider/entries/2007/08/16/more_pressure_for_grady_shafer.html

The Atlanta Journal Constitution: Bill increases pressure on Grady hospital board
http://www.ajc.com/metro/content/metro/atlanta/stories/2007/08/17/grady_0818.html


Associated Press:  Legislative proposal pushes for Grady management change
http://www.accessnorthga.com/news/ap_newfullstory.asp?ID=96519

The Atlanta Business Chronicle: Grady facing mounting pressure
http://atlanta.bizjournals.com/atlanta/stories/2007/08/13/daily38.html

Gwinnett Daily News: Senate measure would force Grady to go nonprofit
http://www.gwinnettdailypost.com/main.asp?Search=1&ArticleID=2379&SectionID=43&SubSectionID=120&S=1

Columbus-Ledger Times: Powerful legislator ramps up pressure on Grady
http://www.ledger-enquirer.com/251/story/111311.htm

WXIA-TV: State senator proposes Grady reform
http://www.11alive.com/news/politics_govt/article_politics.aspx?storyid=101782

Visit David's official website at:
http://www.legis.ga.gov/legis/2007_08/senate/shaferbio.php

Visit David's legislative blog:
http://www.davidshafer.org/

Vist David's new site concerning Grady Hospital:
http://www.reforminggrady.org/


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