The far-reaching recession encompassing the nation and metro Atlanta has hit a little closer to home. Officials with Piedmont Newnan Hospital have announced a delay in the beginning of construction of the $194 million Poplar Road facility.

“The current economic environment has resulted in significant undesirable changes in interest rates and the capital liquidity of lending institutions,” said Piedmont Newnan Executive Vice President and Chief Operating Officer Gregory Hurst. “These changes have caused Piedmont Healthcare to revisit its funding options for the new Piedmont Newnan Hospital facility. Because construction activities, and thus expenditures for the replacement hospital are bundled in specific phases for the project, Piedmont has the advantage of being able to adjust the timing of the phases and cash flow requirements. Given the current instability of the debt market, particularly the jump in interest rates which would add significant additional expense for Piedmont Newnan Hospital, Piedmont recently decided to pause the project for the next few months after the current site preparation phase concludes.”

Hurst said the pause would provide time for the economic environment to settle and regain direction. Detailed design development will continue and the project team will remain in place, he added.

“The good news is that the current economic environment is causing some costs of construction and materials to fall,” Hurst said. “By pausing the project, we have strong reason to believe that we will be able to take advantage of reduced costs in some areas of the project, particularly in the near-term. This is an unanticipated opportunity that we must seize to benefit the finished project.”

Groundbreaking for the $194 million hospital complex on Poplar Road near I-85 was held Oct. 31. The first phase of the project, a 8-story hospital tower totaling 360,000 square feet and a 125,000 square-foot medical office building, was expected to open in early 2011. The second phase to be completed around 2020 will include a second 8-story section of the hospital that will join onto the first phase section, and completion of a second medical office building totaling 125,000 square feet. Plans also call for a total of approximately 2,250 surface and deck parking spaces.

The 136-bed facility will have 14 post-partum beds, 18 critical care beds and 104 general medical/surgical patient beds. The facility also will feature eight operating rooms and 23 patient rooms in the Emergency Department.

“Our desire and intent to move forward with this important facility remains strong,” Hurst said. “As good stewards of our resources and in the best interest of those we serve, we believe these actions will enable us to move forward with the new facility project, take advantage of cost efficiencies, and secure more reasonable interest rates for funding. We are encouraged by the opportunities before us and look forward to completion of the new Piedmont Newnan Hospital.”