by Shane Henson — July 15, 2013—According to a new study, those involved in the design and construction of new hospitals can employ key strategies to reduce the buildings’ energy use by up to 62%, and in the process save nearly half a million dollars per year—plus gain a healthier environment and a significantly improved bottom line.
The study, titled Targeting 100!, identifies a process that integrates architectural, mechanical and central plant systems to deliver significant efficiencies. The strategies can be implemented today using existing technologies in any climate zone, giving it important national—and even global—implications.
The study was made possible through a collaboration by Integrated Design Lab (IDL), an extension of the University of Washington’s College of Built Environments; BetterBricks, the commercial building initiative of the Northwest Energy Efficiency Alliance (NEEA); NBBJ, a global architecture, planning and design firm; SOLARC, an engineering and energy and architectural consulting firm; and TBD Consultants, a project and construction cost management firm.
The research team for the study and peer reviewers from all aspects of hospital design, construction and operation, looked at six diverse climate zones in the United States’ most populous regions—including New York City, Los Angeles, Chicago, Houston, Phoenix and Seattle—to determine if integrated design methods could cut energy consumption and operating costs.
By combining energy-reduction design solutions—including sun and daylight shading controls, vacant room sensors, outdoor air supply with heat recovery systems, modified air delivery systems, thermal energy storage, and improved air-tightness and high insulation values in windows and walls—a newly constructed, code-compliant Targeting 100! hospital saves between $500 and $800 thousand a year in energy costs, says the research team. The biggest breakthrough comes from addressing the reheating of centrally cooled air, which represents more than 40% of annual heating energy usage.
Implementing Targeting 100!’s strategies increases design and construction costs by a minimal 3% but leads to an average 9% return on investment each year thereafter, add the researchers. An average hospital—functioning at a 2-3% operating margin—must generate an extra $20 to 30 million in revenue to have the same impact on the bottom line. Put simply, by reducing operating costs, a hospital can improve its operating margin by 25 to 33%. Depending on the climate zone, local construction and utility costs, and design scheme, hospitals can reportedly see up to a 51% return on investment.
In the face of widespread uncertainty about healthcare reform’s fiscal impact, these strategies reduce the pressure on hospitals to increase the volume of services to sustain already minimal revenue margins. Forward-thinking facilities can implement these strategies today to provide opportunities for both gain and good, stress the researchers.
