George Washington University Hospital has suspended negotiations with the District to build and run a hospital east of the Anacostia River, telling city officials that conditions placed on the deal by the D.C. Council “have made our continued participation potentially impossible and placed this project in jeopardy.”

Kimberly Russo, the hospital’s chief executive, sent a letter Wednesday to City Administrator Rashad M. Young explaining that she still hoped plans for the new hospital in Ward 8 could move forward. However, she said, that would happen only if council members remove the restrictions on the project they adopted at a meeting Tuesday.