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Consume Less, Spend Less
Health Care Facilities Seek Ways to Help Save Energy and Budgets
Early in January 2008 crude oil prices on NYMEX peaked at an all-time high of $100.05 per barrel. The same barrel of oil in 2003, only 5 years ago, was barely over $25. This 400% increase has left many energy budgets falling drastically short. Many facilities, whose large physical plants require huge intakes of energy for heating, cooling, and electrical resources (including gas-powered generator back-ups) to essential life-sustaining bio-medical equipment, are facing double-digit increases in their operational budgets.
There are two strategies healthcare facilities can use to drive energy conservation (Demand-Side Management). The first requires capital investment in new energy-efficient equipment, which often pays for itself in energy savings. This requires expertise for both evaluating existing equipment and recommending suitable replacements. It also requires capital, something for which many healthcare facilities are unable to budget.
The other approach is reducing consumption through optimization of existing equipment and processes. This takes dedicated leadership, expertise in energy management and testing and balancing, and up to a year of measurement to achieve and verify results.
Crothall Solutions for Energy Efficiency
Crothall Facilities Management offers solutions both through on-site Plant Operations & Maintenance teams and its Special Projects Group. Together, they have a proven record of energy conservation and associated cost savings.
The Special Projects Group consists of a team of experts in the identification, design, and implementation of building infrastructure upgrades. VP Paul Norton distinguishes his group's services by the complexity of the facility's situation. "We use multiple criteria to determine whether a solution lies within the scope of the facilities team's duties and capabilities or more value can be generated by entering into a relationship with Crothall Special Projects Group."
Outcomes include:
- Reduced energy & maintenance costs
- Improved reliability of existing energy equipment and systems
- Adequate levels of electric power, heating, and cooling
- Extended useful life of plant assets
- Application of new state-of-the-art technologies
- Improved levels of code compliance
Eger Health Care & Rehabilitation Center
378-bed Eger Health Care & Rehabilitation Center in Staten Island, NY, is a great example of how both arms of Crothall Facilities Management can work together to conserve energy and save money.
In 2002, CFO Nate Falanga hired the Crothall Special Projects Group to assess the infrastructure of Eger's physical plant. The group designed and constructed, with a guaranteed maximum price (GMP), major upgrades to the central heating and cooling plant equipment systems. "That was money well spent," commented Falanga. "We had to spend a little on capital improvements, but we made it up on the operating side. The new boiler and chiller are much more efficient."
The upgrades cost $1M less than the client's budgeted investment. "That is one of the major advantages to working with Crothall rather than the equipment providers, utility companies that offer energy services, or other subcontractors. We have no vested interest regarding products, technologies, or service providers," Norton explained. Crothall attempts to competitively bid all major trade and subcontractor work and material procurements to ensure the client pays no more for the work than necessary. The Special Projects Group also guarantees what the client will pay for a specific scope of work.
Norton points out that project ROI is greatly dependent on both timing and regional location, and not just because of the weather. "Some states have better grants and utility incentive programs than others," he explained. In 2002, the group was successful in reaping $1.3M in utility incentives to offset Boston Medical Center's multi-million dollar capital infrastructure upgrade designed and installed by Crothall.
Conserving with POM
Despite Eger's investment in new infrastructure in 2002 and the subsequent savings for the facility, Eger's energy costs continued to rise in 2006. Nate Falanga turned to Crothall's other energy savings solution-Plant Operations & Maintenance-for answers. Director John Barton, a Certified Energy Manager (CEM) and Certified Testing & Balancing Professional (CTAB), led the staff through a retro- commissioning process of all plant systems. While environmental measurement necessary to test and balance the equipment properly took a full year, the results in 2007 were far beyond the facility's expectations.
The facility experienced cash savings of close to $200,000. Again, Falanga was very pleased with his Crothall team: "John definitely saved us money just by tinkering with what we had in our existing plant. Crothall has saved us money in both gas and electric."
For more detailed information on the process and the results, see the Eger Health Care & Rehabilitation Center Case Study.
Crothall Special Projects Group
Consulting
Provide independent critical analysis and input to the physical plant decision-making process and include:
- Facility & infrastructure assessments
- Strategic planning for utilities & infrastructure
- Energy audits
- Capital planning and budgeting
- Risk analysis of the
physical plant
- Building automation system evaluation & optimization
- Ongoing performance measurement &
management
Construction and Project Management
Provide a wide variety of construction management services, which are tailored to our clients' individual needs and objectives.
- Pre-construction design services
- Project management
- Owner’s agent
- Turnkey construction
- Design, Bid, and Build
- Design-Build
- Performance Contracting with guarantees