New Piedmont Newnan facility to bring increased economic impact
The new Piedmont Newnan replacement hospital located on Poplar Road will be opening in the coming months. And with that opening will be an increase in the facility’s economic impact, both at the hospital and throughout the Coweta County community.
The data included in an economic impact report released by Piedmont Healthcare accounted for two time frames: one of those was for the fiscal year ending in June 2009 while the existing hospital was in use and the other accounted for an estimation of the impact on the fifth year of operations at the replacement hospital. Both time frames were expressed in 2009 dollars.
Calculations for FY 2009 showed the hospital’s total economic impact on Coweta County to be an estimated $157.4 million while the estimated impact after the first five years of operation at the replacement hospital is expected to be $221.6 million.
Economic impact is measure both in the number of jobs at the hospital itself, the number of additional jobs in community (calculated at 1.4 jobs) supported by the hospital and the dollars spent by the hospital in the community.
Estimates for 2009 also showed the hospital having a $59.8 million impact on household earnings by providing 974 jobs.
The 2009 figures show:
-Direct employees - 666 full-time equivalents
-Total hospital payroll - $42.7 million
-Total operating expenses - $101.8 million
-Community employment impact - 974 jobs
-Community payroll impact - $59.8 million
Figures after five years at the replacement hospital show:
-Direct employees - 759 full-time equivalents
-Total hospital payroll - $48.6 million
-Total operating expenses - $143.3 million
-Community employment impact - 1,110 employees
-Community payroll impact - $68.1 million
The report noted that a key to providing an increasing economic impact in Coweta County rests with serving increasing numbers of Coweta residents.
“A key objective of the replacement hospital facility is growing the volumes at the facility and major source of the volume growth is recapturing many of the Coweta County residents who presently leave the county for healthcare. For the 12 months ending in June 30, 2009, approximately 55 percent of Coweta County residents received in-patient care at hospital located outside the county. The projected utilization for the fifth year of operation for the replacement hospital includes the assumption that the majority of Coweta County residents will remain in the county for in-patient care. As a result, the increased total economic impact of the replacement hospital facility also includes the benefit of the majority of Coweta County residents receiving healthcare services from a local provider,” the report said.
Also included in the report is the property tax impact of the 120,000 square-foot medical office building situated adjacent to the Poplar Road facility.
Unlike the replacement hospital, the medical office building will not be tax-exempt and is expected to generate $197,000 in property taxes. In addition, the medical office building generated a one-time impact fee of approximately $580,000.
While not represented in the figures outlined in the study, the report also noted the expectation that a number of physicians will move into the area as a result of the opening of the replacement hospital and its continued expansion of services over time. That expectation showed the potential for 100-150 new physicians to locate in the community after new facility has been in operation for five years.
“This will benefit both community members, with an expansion of local healthcare providers, as well as the local economy. These physicians represent a new tax base of revenue for the county that is not represented in the economic impact study,” the report said.
The report cited the typical physician practice size at three or four physicians with approximately 2.5 staff per doctor.
“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,” according to the report.
The report concluded with the acknowledgement that the new hospital will continue to serve Coweta County’s indigent population. That care in 2009 equated to $7.56 million in services.