Grady Health to End Temporary Nursing Pay Boost Amid Federal Funding Cuts

Grady Health System in Atlanta has notified staff that temporary block pay for certain nursing positions will end in about a month. The extra pay had been added previously to help address staffing shortages, but administrators say it was always intended as a short-term measure. Employees affected by the change received 30 days' notice, according to a statement from Grady. The health system stressed that nurses' base pay rates will not be cut as part of this adjustment — only the temporary supplemental pay tied to staffing needs. Grady attributed the decision to broader financial strain facing hospitals nationwide, pointing to reductions in federal healthcare funding and the expiration of enhanced federal subsidies as key pressures. A spokesperson said these funding shifts are impacting health systems across the country, not just in Atlanta. Despite the change, Grady said it remains focused on maintaining high-quality patient care while continuing to support its workforce. The hospital system, one of the largest safety-net providers in the Southeast, has not indicated whether additional pay or staffing adjustments may follow as federal funding conditions continue to evolve.