The Benefits of Greeing Healthcare Facilities

On March 21, 2011 assisted living facilities became eligible to receive the Environmental Protection Agency’s ENERGY STAR recognition, allowing facilities to be among the top 25 percent of the most energy efficient buildings in the US. In addition to the possibility of receiving ENERGY STAR designation, providers will have access to the tools and information necessary to reduce their energy usage. Having access to these tools will help Facilities Managers understand how their buildings use energy and where opportunities for savings exist.

To learn more about the program visit: www.energystar.gov

Energy Efficiency among assisted and senior care facilities has been on the EPA’s agenda since 2008. These facilities, which operate on a 24/7 basis, have high energy needs and high energy bills. Given the profitability of senior care facilities, a dollar saved in energy can go a long way toward the bottom line. For assisted living facilities with a 10% profit margin, every dollar saved in energy is $10 the organization doesn’t have to make in revenue. Moreover, every dollar invested in an energy efficient upgrade can produce between $2 and $3 dollars in increased asset value.

One of the most effective activities that providers can do is retro-commission their facilities to ensure that all systems are functioning as they were intended when the buildings were originally designed. The Lawrence Berkeley National Lab found that proper maintenance can translate into energy savings of 5% to 15%.

Lighting is typically a large percentage of a building’s electrical load, so replacing incandescent lights with complex fluorescent lights, such as T-8 lamps with electronic ballasts, is a good strategy that often has a simple payback of less than three years.

Heating and cooling equipment tends to have longer payback periods. But when these measures are bundled with lighting or with other ENERGY STAR rated products, which cover more than 50 different product categories and produce 25% to 50% savings, organizations find that the bundled items often fall within a company’s hurdle rate.

Bundling projects to reduce overall project payback rates is strongly recommended by Pathway Lending. Our Energy Efficiency Loan Program uses total project energy savings to set monthly payments and amortize the loan. Combining projects with shorter and longer paybacks allows companies to do more projects at one time. And with Pathway Lending’s recently increased loan limit, which is now above $1 million dollars, companies can set their sights on the largest and most energy intensive projects at their facilities. There has never been a better time to start saving green by going green – contact Pathway Lending today at 1.888.5EE.PATH (1.888.533.7284) or at EEInfo@PathwayLending.Org.