Grady Memorial Hospital has been a thorn in the side of Atlanta's healthcare community and city, county and state government for many years. Noone has been able to "fix" Grady's health. Grady does have a new CEO named Michael Young, the former president and CEO of Erie County Medical Center Corporation in upstate New York, and I think that he may be the man to heal Grady. Many have profited from Grady's woes. It appears that PricewaterhouseCoopers had a large bounty at stake in the event they can improve the hospital's profitability. My favorite healthcare blogger, Sarah Rubenstein at the Wall Street Journal takes on the Grady issue. Read on.
"PricewaterhouseCoopers has taken on the job of helping fix Grady Memorial Hospital, the public hospital in Atlanta that has been bleeding money for years. The firm had hoped to save Grady $65.5 million in 2008, but the hospital fell $7.7 million short of a mid-year goal, according to a report obtained by the Atlanta Journal-Constitution. By year end, Grady could miss out on $10 million to $20 million in savings because of the setbacks, the consultant said.
Here are problems the AJC lists from an August presentation on the hospital:
“Cultural and behavioral barriers regarding accurately charging patients for services rendered.”
“Inefficient contracting process; Missing sense of urgency and accountability; Lack of aggressiveness with vendors.”
Resistance from physicians involved in surgery, delays due to time needed to address executives’ concerns and difficulty recruiting and retaining qualified staff.
A “higher degree of uncertainty than typical,” and delays in starting initiatives.
Consulting firms themselves have a cost. As of early August, PWC had won $6.2 million in fees through a two-year contract that pays the firm as much as one-fifth of what it saves Grady, according to the AJC. The consultant could make up to $26 million, but will earn less if it saves less. Still, PWC has saved Grady more than $34 million between October and June 30, the report said."
Here are problems the AJC lists from an August presentation on the hospital:
“Cultural and behavioral barriers regarding accurately charging patients for services rendered.”
“Inefficient contracting process; Missing sense of urgency and accountability; Lack of aggressiveness with vendors.”
Resistance from physicians involved in surgery, delays due to time needed to address executives’ concerns and difficulty recruiting and retaining qualified staff.
A “higher degree of uncertainty than typical,” and delays in starting initiatives.
Consulting firms themselves have a cost. As of early August, PWC had won $6.2 million in fees through a two-year contract that pays the firm as much as one-fifth of what it saves Grady, according to the AJC. The consultant could make up to $26 million, but will earn less if it saves less. Still, PWC has saved Grady more than $34 million between October and June 30, the report said."
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