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Cutting Edge Energy Solutions Offered by Hospital Council

Monongahela Valley Hospital Considers Comprehensive Energy Plan

By Patricia J. Raffaele

Hospital Council of Western Pennsylvania has joined with Pittsburgh-based companies Limbach and eCap Network to provide healthcare facilities with comprehensive and cutting-edge energy solutions. One hospital, Monongahela Valley Hospital, has already implemented several changes in its energy plans and is now considering a comprehensive, 4-year plan developed in a partnership between the hospital and Hospital Council's energy partners, Limbach and eCap.

“We put together our energy solutions team with a focus on companies which can offer a holistic perspective for each project and who look at an entire energy project, are able to do the work on the project and be able to assist facilities with finding funding solutions for the project,” said Sean O'Brien, director of Member Services and IT for Hospital Council of Western Pennsylvania.

Limbach, a Pittsburgh-based company headquartered in Lawrenceville, has been working with hospitals to assist them with energy and building solutions throughout western Pennsylvania. The company itself, started more than 100 years ago, as a mechanical and sheet metal contracting company. “We are a strategic partner to Hospital Council and its members, offering an independent, consultative, objective analysis to the hospital,” said Kevin Conley, manager, Energy Solutions Business of Limbach. Limbach partnered with eCap Network to assist Hospital Council members with implementing comprehensive, energy management solutions and with finding financing options for those projects.

While Monongahela Valley Hospital has already implemented several changes to conserve energy, the administrative team decided that the hospital was in need of a “comprehensive” energy plan, said Ray Andrews, vice president of Administration and Support Services for Monongahela Valley Hospital. The hospital issued a request for proposal and after reviewing the responses, chose the proposal from Limbach and eCap, as the one to move forward with.

To begin the process of creating an energy plan for Monongahela Valley Hospital, executives from Limbach and eCap met with executives from the hospital to see if there was a “fit” between the companies and the hospital. Then, Limbach and eCap conducted a high-level survey of the facility to review the facility as well as possible energy conservation and facility improvement measures. “The survey results are a real benefit for the hospitals,” Conley said. “We do these at no cost to the client and they are comprehensive.” Following the audit, Limbach, eCap and the hospital executives work together to develop a more formal agreement outlining the entire project.

“Their proposal was the most comprehensive and included the most energy efficient target areas,” Andrews said. “Our interest in doing a comprehensive energy plan is based on two key factors: the needs of the facility and the financial incentives available now for implementing some of these changes.”

A combination of a variety of funding solutions including incentives, rebates, loans and grants become part of the comprehensive proposal offered to healthcare facilities, said John Werling, president of eCap Network. Timing is critical right now, Werling said, because of escalating electrical prices and financial incentives offered through Pennsylvania's Act 129. Act 129 was signed into law in October 2008 and is focused on reducing energy consumption and demand. Rebates may only be available for the next few years and are subject to limited funding. Act 129 essentially mandated that utilities create rebates as incentives for consumers to reduce their energy demand, Werling said. “The legislation is trying to accelerate the market's adoption of energy efficient technology by providing incentives,” he said.

“These incentives are allowing Monongahela Valley Hospital to consider not just energy efficient equipment, but also new ways of conserving and generating energy through such processes as cogeneration and solar energy,” Andrews said. He noted the return on investment for solar energy would be about five and- a -half years and the hospital has the roof space to install solar panels. “We would use a local company for the solar panels and installation,” Andrews said. “This specific project and the possible plan for the project will largely be determined by what types of incentives are available for us.” That is the case for cogeneration, as well.

In addition, market deregulation for utilities also plays a role in health care facilities' interest in energy efficiency. Although capitation on electric rates has not yet ended in western Pennsylvania, it will in 2011 and electric rates in western Pennsylvania are expected to increase significantly, possibly more than 20 percent. “In makes sense to make changes now, before rates go up,” Werling said.

“Two of our most important concerns when we discuss energy efficiency are patient and employee satisfaction,” Andrews said. “We want to make sure we are heating and cooling our buildings for the comfort of our patients and employees.” The hospital has also worked with employees to assist in energy conservation by asking them to help turn off lights and computers and other basic energy conservation measures, he said.

The next step for Monongahela Valley Hospital, Andrews said, is for the staff to present the complete energy proposal submitted by Limbach and eCap to the hospital's Board of Trustees. While Monongahela Valley Hospital considers their proposal, other health care facilities in the region are also in the process of having energy audits conducted by Limbach and eCap.

“The audit itself is a wonderful asset to Hospital Council members,” O'Brien said. “It really gives a comprehensive picture of what is happening with a specific facility and opportunities to conserve energy and save money.” O'Brien also noted that since some of the incentives will be over by the end of December, now is the time to begin the audit process.

For more information about Hospital Council's energy program with Limbach and eCap, contact Sean O'Brien at 724-772-7284 or at obriens@hcwp.org.

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