Construction on a new eastern Kentucky hospital is shut down indefinitely.
Officials at Saint Joseph - London say the country's financial situation is making it too difficult to keep going.
The new Saint Joseph London is expected to provide more jobs and better care, but it appears we're going to have to wait a little longer.
“The same crisis that's impacting the banks is trickling down to the organizations that want to raise capital for some significant expenditures,” Robert Brock Saint Joseph London, CFO, said.
Construction for the nearly 150 million dollar project started months ago, but Saint Joseph's owner, Catholic Health Initiatives, is pulling back on several projects.
Like many of us, it is feeling the affects of the shaky stock market.
“Our capital capacity has directly been negatively impacted most of all by the performance of the market in recent months,” Brock said.
Officials say the company remains profitable, but to keep it that way they are suspending construction.
“It will be a couple of months. How much beyond that will really depend on our ability to secure financing at a reasonable rate,” Brock said.
We noticed some activity at the new hospital site.
“We want to protect what we've done so far, but activity will be minimal until we restart again,” Brock said.
It is still unclear exactly how this will affect the 200 people working on the project, but officials say work will resume, and by summer there could be more than 500 workers at the site.
Officials say construction on the new hospital was ahead of schedule, so it should still be complete by Summer 2010, just slightly later than originally planned.