Fired Grady CEO sues for severance

Otis Story, former CEO of Grady Memorial Hospital has filed a lawsuit seeking $1.8 million in severance pay.

The lawsuit, filed against the Fulton-DeKalb Hospital Authority and board chair Pamela Stephenson, alleges Stephenson fired Story so she could become hospital CEO.

"Stephenson's conduct was willful, malicious, fraudulent, wanton, oppressive, reckless," the suit, filed in Fulton County Superior Court alleged.

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Story, who was fired from Grady in January and replaced with Stephenson, also seeks a $60,000 retention bonus and other damages.

The suit lacks merit, Stephenson said in a statement. "We dispute the charges and will respond accordingly," she said.

On Jan. 28, Stephenson met with Story over dinner, according to the suit. She provided Story a letter regarding the purported reasons for the termination. She told Story he must sign a confidentiality agreement to receive the letter. Story refused to sign.

Stephenson unilaterally terminated Story, the lawsuit alleges, "to consolidate her power and control over the authority, expand her influence with the new non-profit board, increase her personal monetary income and guarantee herself continued power and control over Grady Hospital."

Grady was recently privatized after the Fulton-DeKalb Hospital Authority agreed to hand over daily operating control of the 953-bed hospital to a new non-profit management corporation, Grady Memorial Hospital Corp.

The new board is looking for a new CEO. Stephenson has not said whether she intends to throw her hat in the ring. Stephenson, who also serves as vice chair of Grady Memorial Hospital Corp. and is a state lawmaker, has been criticized by some for consolidating power.