‘Old’ Piedmont Hospital was also an economic engine in Coweta
It is a foregone conclusion that the new Piedmont Newnan Hospital will be an economic engine for Coweta County. But what about the “old” Piedmont Newnan Hospital and its contribution to the area’s economic vitality in recent years? In 2010 the hospital generated more than $200 million in revenue, had direct expenditures of more than $87 million and provided more than 1,700 jobs.
A recent report from the Georgia Hospital Association (GHA) noted that Piedmont Newnan Hospital generated $202 million in revenue for the local and state economy in 2010. The report also included the cost of uncompensated care to be over $9 million, including unpaid costs of Medicaid and Medicare during the same time period, according to Piedmont Healthcare’s Amanda Bartlett.
The report also showed Piedmont Newnan Hospital sustained 1,720 jobs throughout Coweta County and the rest of the state and had direct expenditures of over $87.5 million in 2010. When combined with an economic multiplier developed by the U.S. Department of Commerce’s Bureau of Economic Analysis, the total economic impact of those expenditures was more than $202 million.
Bartlett said the output multiplier considers the “ripple” effect of direct hospital expenditures on other sectors of the economy such as medical supplies, durable medical equipment and pharmaceuticals. Economic multipliers are used to model the resulting impact of a change in one industry on the “circular flow” of spending within an economy as a whole.
“Given the current state of the economy, we’re proud to be able to provide the jobs and business opportunities we do,” said Piedmont Newnan Hospital CEO Michael Bass. “Our hospital is an integral part of Coweta County and the surrounding communities and is the foundation for quality of life. So many patients trust us with their lives and to restore their loved ones’ health. It’s nice to give back to the community that supports us.”
Bartlett said that while Piedmont Newnan Hospital remains a major component of the area’s economic engine, the hospital’s leadership, like the rest of the Georgia hospital community, is concerned about a wide array of economic challenges that lie ahead, including continued federal and state cuts in Medicare and Medicaid payments to providers and a fast-growing uninsured and underinsured population.
“Presently, more than a third of all hospitals in Georgia are operating with negative margins,” said Bass. “There are definite challenges that come when there is a growing demand for care and an increasing number of patients who are uninsured or underinsured. We’re fortunate to have a brand-new facility available to our community that is equipped with the latest technology to meet this growing need for access to healthcare.”
For all that the former Piedmont Newnan Hospital accomplished in terms of economic vitality, the “new” hospital on Poplar Road should far exceed those marks in the coming years. The new Piedmont Newnan Hospital is positioned geographically on 100 acres adjacent to what is expected to become the new Poplar Road interchange on Interstate 85.
The new hospital is also larger and can, with the available land on hand, easily accommodate future expansion.
Adding to that reality is the 125,000 square-foot medical office building adjacent to the hospital. The entire building was pre-leased before the hospital opened in May. And across Poplar Road construction will soon begin for a 40,000 square-foot medical office building.
Given its proximity to I-85 and plenty of land surrounding the facility for use by other medical providers, it is likely only a matter of time before the impact of the new hospital will be evident.