Atlanta – February 19, 2010 – Piedmont Healthcare today announced that it will restart construction on the replacement hospital facility on Poplar Road. Officials said start-up activities will begin immediately, with completion and opening projected for early 2012.
“We are excited to proceed with the construction of this world-class hospital,” said Gregory A. Hurst, chairman of the Piedmont Newnan Hospital Board of Directors and executive vice president/COO for Piedmont Healthcare. “As a result of our intentional delay of this project, we expect to realize approximately $35 million in savings from the original cost projections, without compromising the facility or services.”
The economic climate of the past year has enabled Piedmont to take advantage of reduced construction costs while also awaiting market stabilization to secure more reasonable interest rates for funding. Through rebidding of the entire project in today’s economy and working with BE&K, general contractor, and Perkins Will, architects, Piedmont officials have been able to extract more than $30 million in construction costs.
The Piedmont Healthcare Board of Directors approved the project restart at its December 2009 meeting. Work over the past two months has been focused on developing the plan of finance and repricing the project. The Board was also impressed with the overall performance of Piedmont Newnan Hospital. Operational results and realized efficiencies are strong reflections of very effective management. Increased volumes reflect the community’s increased confidence in the hospital, services and management. The continued support of the medical staff in quality improvement and patient satisfaction initiatives as well as other operational efforts has been critical to these achievements as well.
“Piedmont’s commitment to this community is evident in the many improvements already accomplished at Piedmont Newnan Hospital, with its steadfast pursuit of this project and its attention to fiscal and civic responsibility,” said Michael Bass, president and CEO for Piedmont Newnan Hospital. “Our intentional delay in this project will ensure a new hospital that will yield a reasonable margin, manageable debt load and acceptable financing costs. We are most appreciative of the continued patience and support of the community as we have navigated the economic challenges over the past year.”
The benefits of constructing a replacement hospital facility in Coweta County are numerous for both the local economy, as well as the general community. An increase in overall economic impact, local jobs created, as well as increased tax revenue from the on-site medical office building and other new community physicians will positively affect Coweta’s economic prosperity. The community will also benefit from additional healthcare services offered in the community as a result of the replacement facility’s construction, as well as Piedmont’s continued commitment to taking excellent care of Coweta’s population in a modern, state-of-the-art hospital facility.
“We are encouraged by the opportunities before us and look forward to completion of the new Piedmont Newnan Hospital,” said Hurst.