Plans to significantly expand one of Minnesota's oldest hospitals have been put on the back burner until the economy improves.

Officials from Lakeview Hospital in Stillwater were expected to seek approval from the Stillwater City Council early this year for their 20-year expansion plan. Now the four-phase project has been postponed because of the economy.

"We still have the plans on the table. It's just a matter of timing more than anything else," said Jeff Robertson, CEO of Lakeview Health System, the parent company of Lakeview Hospital.

He added that the delay could last six months or maybe even a year. Meanwhile, hospital officials will monitor the volume of patients to see whether health industry forecasts ring true about a decrease in the number of patients choosing elective surgeries.

While Lakeview Hospital has not seen patient volumes go down, its investment portfolio has taken a hit, Robertson said.

Last month, hospital officials withdrew their application for a special-use permit for their multimillion dollar building project. For now, Lakeview leaders are planning to do some remodeling inside the hospital, allowing them to move and expand the hospital's oncology services.

ALLIE SHAH