THE construction of the new Malvern Community Hospital could be cheaper than health chiefs first thought because of the credit crunch.

The projected cost of building the new hospital at Seaford Court was £19.22 million.

But health bosses have now revealed the project may only cost around £17.731m, partly because of the poor economic climate.

The new capital costs were revealed at a meeting of the Worcestershire Primary Care Trust (PCT) board at Redditch Town Hall yesterday.

PCT chairman Bryan Smith said at the meeting: “Roll on the recession, that’s what I say,” after projected costs fell as a result of reductions in estimated construction cost inflation.

A more competitive building industry means a lower capital cost and smaller instalments when the PCT pays back the cash to the Department of Health over the next 20 years.

Interserve Health, the organisation selected to build the hospital, is still in negotiations with Worcestershire Primary Care Trust and the Strategic Health Authority, which is monitoring the project over the final price.

Project director Brian Hanford said the project was now entering an “exciting phase” with demolition of the existing buildings set to begin next month.

He added: “We’re now getting down to the serious business of spending some serious money and getting people walking around with their hard hats.”

Mr Hanford said it was good news that the hospital would be cheaper without making any reduction to its size but added: “The builders could turn around and say we can’t build it for that price.”

Earlier in the meeting Malvern Hills District councillor Paul Tuthill praised the consultation about the development of the hospital because it had led to genuine changes in design to make it more suited to the needs of residents and potential patients.

Changes have included altering the design from a T-shape to a V-shape so as not to damage views of the Malvern Hills and an increase in car parking from 82 to 115 spaces Planning permission has now been granted for the hospital and it is scheduled to open in September 2010.