An Indianapolis hospital is going ahead with a $260 million expansion project that it said six months ago it was halting.

St. Francis Hospital & Health Centers announced Friday that an improving economy meant its leaders felt safe in resuming full construction work on the six-story, 221-bed tower at its campus along Interstate 65 on the city's south side.

The project is a key part of plans by St. Francis to end inpatient services at its aging Beech Grove hospital in 2012 and transfer those patients to the new hospital.

St. Francis says work never stopped on the new tower as crews completed exterior portions.

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