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Published Sunday, January 08, 2012 in Local

Special

Piedmont Newnan Hospital's projected economic impact on Coweta County.

New hospital's opening expected to have major economic impact

By Alex McRae

The Newnan Times-Herald

The opening of the new Piedmont Newnan Hospital in May represents much more than the relocation of an existing business.

In addition to opening a new first-rate facility that will be a destination for medical professionals and patients, the new hospital is expected to create the largest economic impact felt in Coweta County in years -- due not only to the use of the new facilities, but to the new businesses expected to come to Coweta to support the new hospital, its expanded medical staff and increased patient load.

The economic impact is hard to estimate, but will be huge by any measure.

The following information, presented by Piedmont Newnan Hospital officials, summarizes what might be expected:

* In Coweta County, each hospital job supports approximately 1.4 additional jobs in the overall economy. Every dollar spent by a hospital supports almost $1.54 of additional business activity, according to studies by the American Hospital Association, the Georgia Hospital Association and the United States Bureau of Economic Analysis.

* In Fiscal Year 2009, PNH's total economic impact on Coweta County was estimated at $157.4 million (based on total output/income generated), while the impact on household earnings was approximately $59.8 million. Additionally, PNH had an employment impact of 974 jobs in Coweta County.

* By the fifth year of operation in the new hospital, PNH's total economic impact (expressed in 2009 dollars) on Coweta County is estimated to be $221.6 million (based on total output/ income generated). The impact on household earnings is approximately $68.1 million. Additionally, PNH is projected to have an employment impact of 1,110 jobs in Coweta County.

* Increased Tax Revenue and Fees Associated with Medical Office Building:

A key component of the replacement hospital facility is the development and construction of a medical office building (approximately 120,000 square feet) to be located adjacent to the replacement hospital on Poplar Road.

Due to the ownership structure, the new medical office building will not be "tax-exempt" and will be subject to property taxation requirements. It is estimated that the annual property taxes for the Poplar Road medical office building will be $197,000 based on current project scope and a 28.31 millage rate.

* Community Impact - New Community Physicians:

It is anticipated that there will be a significant influx of physician practices into the Coweta community as a result of the new hospital's opening and as the hospital continues to expand its services in the new facility.

The typical physician practice size is 3 to 4 physicians with approximately 2.5 staff members per physician, which would equate to 30 to 50 new businesses and 200 to 250 additional jobs created in new community physician practices alone, with an approximated annual net revenue of more than $1 million per practice.

The physicians relocating to this area will also bring their families with them, which will benefit the local real estate market, education system and local businesses they will utilize as new community members.

* Community Impact - Serving Coweta's Indigent Population:

As part of PNH's promise to take care of Coweta and surrounding-area residents, PNH provided over $7.56 million in charity/indigent care in FY09. PNH will continue its mission to improve the health and wellness of county residents who seek treatment at the replacement facility through providing charity/ indigent care after moving from its current facility.

The benefits of constructing a replacement hospital facility in Coweta County are numerous for the local economy and 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.

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