If the global medical industry were a country, it would be the fifth largest emitter of greenhouse gases in the world.
As legislators and various other groups continue to consider the dire future of climate change, laws such as the Inflation Control Act of 2022 will allow large companies, such as health systems, to invest in renewable energy sources such as solar and power generation. It is emerging as a law that financially incentivizes increased dependence on sources. Wind. As a result, health systems are launching sustainability projects aimed at both reducing their carbon footprint and saving money in the long term.
Many health systems are in a precarious financial position, a reality reinforced this week by news that Texas-based Steward Healthcare is filing for bankruptcy and selling all 31 of its hospitals. Understandably, many hospitals are still desperate to offset costs in any way they can, and health sustainability experts believe renewable energy projects are an important way to do that. Masu.
See how four health systems across the country are saving millions of dollars through renewable energy programs.
kaiser permanente
Oakland-based Kaiser Permanente made a deep dive into solar energy about six years ago when it partnered with the California Energy Commission to install a green microgrid at a hospital in Richmond, Calif., the health system said. said Lame Hemstreet, Chief Energy Officer.
A microgrid is a system that collects, stores, and releases energy on demand and can continue to function even if the centralized power grid goes down. Green microgrids typically generate electricity using things like solar panels, biomass generators, wind turbines, and other renewable energy sources.
Richmond Hospital's microgrid is a 250-kilowatt solar panel installed atop a five-story parking garage. It can generate clean energy while the sun is out and store 1 megawatt-hour of energy in a battery until you need it. If a hospital experiences a power outage, the microgrid can provide emergency power for up to three hours.
“We see green microgrids as an opportunity to improve facility reliability and business continuity, as well as expand possible on-site renewable energy production,” Hemstreet explained. .
He also said Kaiser is currently in the final stages of building a “larger system” at a hospital in Ontario, California. When completed, the new green microgrid will be able to generate 2 megawatts of solar energy, eight times more than Richmond's, and store 9 megawatt hours of energy in batteries.
Hemstreet noted that Kaiser has expanded the use of green microgrids to more than 100 of Kaiser's medical office buildings in recent years.
“Green microgrids have economic advantages. They allow you to store energy when it's cheap and use that energy when energy from the grid becomes expensive. Another The advantage is that these local office buildings have clean power and resiliency that would not otherwise exist. This is the triple crown of energy supply, saving costs and providing resiliency. , reduce carbon emissions,” he declared.
Greening efforts are spreading to Hawaii. The health system completed construction in 2021 on a new medical office building on West Oahu that gets 75% of its electricity from a green microgrid, Hemstreet said.
He said the facility is saving 25% in costs compared to what it would cost to buy the same amount of electricity from the non-renewable grid. Overall, the project reduced electricity bills by nearly $100,000 per year and reduced greenhouse gas emissions by approximately 400 tons per year.
“Hawaii's electricity rates are among the highest in the country. In that particular facility, we were probably spending about $325,000 a year and now we're spending about $200,000,” Hemstreet explained. .
Hackensack Meridian Health
New Jersey-based Hackensack Meridian Health began establishing efforts to reduce its carbon footprint about 10 years ago, said Jose Lozano, the company's chief growth officer.
“We understand that the healthcare sector is one of the biggest consumers when it comes to electricity and public infrastructure, so we have implemented initiatives such as installing more LED lighting and improving pipe water consumption. “We know it's putting a strain on the grid,” Lozano said.
Last month, Hackensack Meridian Health further strengthened its commitment to climate-smart power by entering into a 30-year renewable energy partnership with infrastructure company Bernhardt. The project aims to make Hackensack the largest owner of solar power and battery energy storage systems among nonprofit health care providers in the United States.
Hackensack is working to install 50,000 American-made solar panels across 18 hospitals. Lozano noted that it is difficult to visualize 50,000 panels, which he said is “equivalent to filling 27 football stadium fields.”
Once the project is complete, Hackensack expects to reduce carbon emissions by 10%, reduce purchased electricity by 25%, and achieve an additional 33% in energy savings.
The health system is investing $134 million in the project, which Lozano said will take two to three years to complete. About $50 million of that cost would ultimately be covered by tax credits from the Inflation Control Act, he added.
“We knew we needed to spend money to save money in the long run,” Lozano said.
advent health
Central Florida-based AdventHealth also announced a major solar power project last month. The company partnered with local solar developer ESA to install 7,500 solar panels on top of four buildings and two garages on the corporate campus.
Once operational, the solar microgrid is expected to provide 4,200 megawatt-hours of electricity annually. This will reduce the campus' dependence on utility-supplied electricity by approximately one-third.
The project is expected to be completed by the end of the year, said John Culver, the health system's director of sustainability.
“We estimate that we will save about $20 million over the next 20 years in on-site cost reductions alone, which means we will physically supply about a third of our own electricity, and we will not have to purchase it. '', he said. “There are also various financing mechanisms specific to local power companies that allow us to put some of the power back into the grid at a value to us. And with the IRA, about 30% of the total project cost is tax deductible. I look forward to coming back.”
Culver noted that AdventHealth recently announced new renewable energy deals. In February, the health system signed a deal with renewable energy developer Scout Clean Energy, which is now providing power from Scout's 14,000-acre wind farm in Texas.
Once both the on-site solar and off-site wind energy programs are operational in 2026, both projects will account for all of AdventHealth's system-wide electricity usage, Culver declared.
“Together, our two projects amount to just over a terawatt-hour, which is 1,000 gigawatt-hours, 1 million megawatt-hours, or 1 billion kilowatt-hours, which is equivalent to the usage of your home. So it's huge,” he said.
Gundersen Health System
However, large health systems are not the only ones in the sustainability game. Gundersen Health System has been operating for more than 10 years with seven hospitals and 65 clinics in most rural areas of Wisconsin, Minnesota and Iowa.
“Back in 2008, our CEO really recognized the importance of going green as a healthcare system, because without a healthy environment, you don't have healthy patients.” called some of our engineers and formed a group called Envision, a Gunderson LLC,” explained Ariel Brophy, project manager at Gundersen Envision.
She noted that Envision staff members began the organization's work by looking for every opportunity to conserve energy, such as scheduling HVAC processes and replacing light fixtures. But then research quickly shifted to focus on renewable energy.
Gundersen has implemented nearly a dozen renewable energy projects since Envision's launch. By 2014, the health system became the first in the country to become energy independent. This means that it produces more energy than it consumes.
Envision's projects use a variety of renewable energy sources, including solar, wind, cow waste, and wood.
“It really reduces utility costs for us and, in turn, for our patients. Last year, we saved a total of $5.3 million from all of our energy projects (both efficiency and renewable energy). That money immediately goes back into patient care,” Brophy noted.
At Envision, everything goes back to the idea of ”green on both sides.” This means the project must be beneficial to both the natural environment and the health system's finances, she explained.
“We do not intend to charge patients fees that they will not be reimbursed for,” Brophy said.
Photo: Topp_Yimgrimm, Getty Images
