ATLANTA -- Grady Memorial Hospital's nonprofit board has been granted tax-exempt status by the IRS.

The hospital's leaders said Friday the move will help the Grady Memorial Hospital Corporation better leverage its funding.

The foundation was formed with the help of Atlanta business leaders to bolster the cash-strapped hospital.

Foundation chairman A.D. "Pete" Correll says it was a "critical step in allowing us to get Grady the help it needs to keep serving this community."

Grady Memorial is the city's only public hospital.

It has struggled financially for years as it treated the poorest of the poor. The hospital recently reached a crisis point because of rising health care costs, dwindling government aid, a lack of paying customers and years of neglect.