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60 Medical Construction & Design | NOV EMBER / DECEMBER 2015 | MCDM AG.COM BY MICHAEL DELLA BARBA T he industry is often tasked to build and maintain an infrastruc- ture that provides high-level, sustained performance with little or no additional fi nancial resources. Asset optimization, in all aspects of a healthcare institution's operations, has become a signifi cant driving force for effi ciency, allowing the institution to maintain a high level of service within a value-based revenue model. As a result, many hospitals have targeted energy consumption as a cost-reduction opportunity. Traditionally, this included purchasing more energy- effi cient heating and cooling systems, making buildings "tighter" and setting thermostats lower. But the savings envisioned were often not achieved or consistently maintained. Now with less capital for investment, new HVAC equipment is often passed over for more critical medical equipment, effectively curtailing many energy-saving projects. A new approach to energy manage- ment — called energy optimization — promises fi rst-year reductions in energy consumption of at least 10 percent, without the need for capital investment in new equipment or building modifi ca- tions. Payback periods range from 6 to 12 months. The underlying principle is tuning the performance of the HVAC equipment to precisely match the load of the healthcare facility. Unlike energy audits that focus on capital equipment replacement, energy optimization utilizes detailed energy ana- lytics to identify low-cost adjustments or minor mechanical fi xes to ensure that sys- tems operate as intended and as needed in the building's state of use. These modifi cations eliminate energy waste and extend the life of the equipment. The cornerstone of energy optimiza- tion is the collection and analysis of real-time performance data upon which decisions are made and opportunities identifi ed. This performance data often shows that what is often assumed to be happening in the building is incorrect. Energy optimization at Good Samaritan Medical Center Good Samaritan Medical Center in Massachusetts, a member of the Steward Health Care System, desired to improve overall performance of its buildings to support new technologies being installed as part of a major expansion program. A recent emergency department expansion program had taxed existing budgets and hospital administrators wanted to evaluate if other sources of revenue could be tapped to support ongoing operational needs. A detailed review of the energy needs was undertaken and an energy optimiza- tion project was proposed for a source of meaningful, ongoing revenues. The opti- mization review for GSMC identifi ed an opportunity for 10 percent total energy savings with a 9-month payback period. During the fi rst year, the project achieved 14 percent energy savings and a 10 percent cost reduction. The project fee was structured so that client payments would come from realized project sav- ings (reduced utility costs) as opposed to operational budgets. ENERGY OPTIMIZATION Making it work for long-term savings SAVINGS FOR GOOD SAMARITAN MEDICAL CENTER Simple Payback --------------------------------------------------------- 0.6 years Savings Opportunity (4 years) ------------------------------------ $890,600 Savings per Year ------------------------------------------------------- $222,650 Equivalent Annual Revenue (@ 4% profi t) -------------------- $5,566,250