Grady And Children’s Sign Historic Management Agreement For Hughes Spalding Children’s Hospital

ATLANTA, Dec. 15 /PRNewswire/ -- Children’s Healthcare of Atlanta and Grady Health System today signed an agreement whereby Children’s will manage Hughes Spalding Children’s Hospital. The two healthcare providers have been collaborating to preserve the downtown children’s hospital.

In February 2006, Children’s will assume responsibility for the management of services at Hughes Spalding. Operations will be managed by HSOC, Inc., an affiliate of Children’s Healthcare of Atlanta. This includes the management, administrative and related duties and services of the hospital. Grady and the Fulton-DeKalb Hospital Authority will maintain ownership of the hospital.

“This is a historic day for Atlanta. With the signing of this agreement, Children’s will help us ensure that Hughes Spalding continues to serve our community’s most vulnerable members -- our children,” said Andrew Agwunobi, M.D., president and CEO of Grady Health System. “We need the support of the entire city to make this revitalization a success.”

James E. Tally, Ph.D., president and CEO of Children’s added, “This is the right thing to do for our children. Leaders from throughout the city and state have come together to address the challenges here because they know that improving Hughes Spalding will bring meaningful change to the children of Atlanta and future generations.”

To date, Children’s Healthcare of Atlanta has raised nearly $30 million to upgrade the 53-year-old building and will continue to raise funds from the community in order to renovate and operate the facility. Initially not designed as a children’s hospital, the facility has undergone minimal renovations since its doors opened in 1952. In addition, the building was not designed as an emergency care center, but treats nearly 50,000 emergency patients annually.

“The Boards of both Grady and Children’s are dedicated to the true heart of the city -- the place so many children turn to for quality care when they need it most. Hughes Spalding deserves our commitment and support,” said Joe Rogers Jr., chairman of Children’s Healthcare of Atlanta board of trustees.

ABOUT CHILDREN’S HEALTHCARE OF ATLANTA

Children’s Healthcare of Atlanta, one of the leading pediatric healthcare systems in the country, is a not-for-profit organization that benefits from the generous philanthropic and volunteer support of our community. With 430 licensed beds in two hospitals and more than 450,000 annual patient visits, Children’s is nationally recognized for excellence in cancer, cardiac, neonatal, orthopaedic and transplant care, as well as in many other pediatric specialties. Child magazine ranks Children’s as one of the top 10 children’s hospitals nationwide and Children’s is among U.S. News & World Report’s top pediatric hospitals. To learn more about Children’s Healthcare of Atlanta, visit www.choa.org or call 404-250-KIDS.

ABOUT GRADY HEALTH SYSTEM

Founded in 1892, Grady Health System is one of the largest public health systems in the Southeast -- and is made up of Grady Memorial Hospital, Hughes Spalding Children’s Hospital, 10 neighborhood/airport health centers and the largest nursing home in the state. The health system also includes the only level one trauma center within a 100-mile radius of downtown Atlanta, more than 200 specialty clinics, one of two burn units in the state and the Georgia Cancer Center for Excellence. Staffed exclusively by physicians from Emory and Morehouse schools of medicine, the nationally renowned teaching facility handles over 800,000 patient visits a year. For more information, visit www.gradyhealthsystem.org.

Atlanta

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CONTACT: Kevin J. McClelland of Children’s Healthcare of Atlanta,+1-404-785-7600, or pager, +1-404-570-9717