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ACHIEVING ENERGY & COST
SAVINGS IN HEALTHCARE
BY ENGAGING PEOPLE AND INSPIRING BEHAVIOR CHANGE
May 23, 2013
2
LEARNING OBJECTIVES
• Define “Behavior-Based Energy Efficiency”
• Understand how a behavior-based energy
efficiency program might be implemented
• Understand the potential for energy and cost
savings in a healthcare environment
• Recognize the unique challenges associated
with the healthcare setting
• Decide if a behavior-based energy efficiency
program may be right for your organization
3
WHAT IS BEHAVIOR-BASED ENERGY EFFICIENCY?
Behavior-based energy efficiency (BBEE)
is…
… a method of reducing energy
grounded
in psychology and behavior that relies on
individual choice and decision making
to realize verifiable energy savings
(BPA, 2013)
4
WHAT IS BBEE?
• Behavior-based energy efficiency programs
target specific organizational behaviors, such as:
― One-time behaviors (e.g., changing the
settings on a thermostat)
― Habitual behaviors (e.g., turning off lights,
only running the dishwasher when full)
― Purchasing decisions
5
WHY SUSTAINABILITY AT RMC
• Do No Harm
• Improve Community Health
• Environmental Impact Improvement
• Enhancing a Culture
• Improve Healing Environments
• Improve Employee Satisfaction
• Improve upon the Business
6
TRIPLE BOTTOM LINE
7
BEYOND PROCESSES
• Plant upgrades
• Lighting upgrades
• Building controls
• Virtualization
• Single use devices
8
IT’S ABOUT PEOPLE
9
“OH, THE THINGS THEY DO”
• Busy
• Focused
• Unaware
• Not educated as to the “why”
• Internally motivated
• No measurement, no worries
“Humans are the Hazard
in the System”
10
PEOPLE AND PARTNERSHIPS
Recycling Rate
• 42%
Construction
• Recycling rate of 54.3%
• Most building items
purchased locally
• Native Plantings
Single Use Devices (SUDs)
• Annual savings =
$111,175
Electrical Usage
• 23% reduction
Natural Gas Usage
• 19.6% reduction
Water/Sewer Usage
• 28.1% reduction
11
THE PARTNERS
• CLASS 5 Energy
―Consulting firm in White Bear Lake, MN,
established in 2002
―Specializes in behavioral energy programs,
energy plan development, utility tracking and
energy efficiency resources
―Clients in K-12 schools, higher education
and office/commercial
12
THE PARTNERS
• Ridgeview Medical Center (RMC)
―Independent nonprofit, regional healthcare
network west of Twin Cities
―More than 1,500 employees
―13 buildings: hospital, clinics,
professional buildings and a
hospice home
―More than 460,000 sq. ft.
and an annual utility budget
of more than $1.2 million
13
GOALS FOR CLASS 5
• Implement program components and adapt
as needed for a healthcare setting
• Develop new components specific
to the healthcare sector
• Obtain feedback from RMC staff
on the effectiveness of the program
• Evaluate the impact of the program on RMC’s
overall energy savings
14
GOALS FOR RMC
• Increase RMC’s energy efficiency
• Engage staff in energy saving behaviors
• Achieve an 8% reduction in energy costs
• Work towards ENERGY STAR® recognition
for RMC’s buildings
• Run an effective program without affecting
quality or patient and staff safety
15
RESULTS
15 months
6%
reduction
in energy
use
$75,000 in
energy cost
avoidance
No asset
projects
16
RESULTS
Nearly 400 of RMC’s 1,575 employees
responded to a survey asking how the program
affected their attitudes and behaviors:
• 89% are more likely to engage in energy saving
behavior
• 83% have a more positive attitude toward saving
energy
• 91% learned that individuals can have an impact
on organizational energy costs
• 94% would be willing to submit an energy saving idea
to their department if they had one
17
THE SCIENCE
Technical Approach: Improving business systems and
processes
Human Approach: Managing the people side of change
Convergence over time = CHANGE
MANAGEMENT
Organizational Change Management
18
WHAT IS THE CLASS 5 PLAN?
Guided process for achieving organizational
energy efficiency
• Identify an internal champion/team of champions
• Gain leadership buy-in and support
• Create energy steering committee, establish
guidelines
• Educate and engage employees and peer champions
• Implement low- and no-cost operational strategies
• Track energy use
19
HOW DOES IT WORK?
• Educate people about why a change
is needed and how it will be
achieved
• Identify opportunities for both
short- and long-term wins
• Engage people and asking them
to do their part
• Measure and track progress
(using data) toward the goal
• Communicate and celebrate results
The Plan uses a dynamic, iterative change
management process:
20
TECHNICAL APPROACH
• Adjusting thermostats in all areas except patient
rooms and having setbacks for areas that are not
open 24/7
• Putting timers on equipment that can be shut off
without affecting patient care
• Utilizing power-saving functions on equipment
and computers
• Asking employees to turn off
lights, monitors, printers, etc.
• Delamping in overlit areas
21
TIMERS ON HYDROCULATORS
Calculated savings:
$0.125 per KWH x 8 hours/day x 365/days a year =
$365 dollars per year per unit
$365 x 8 units = $2,920 in savings per year minimum
(additional savings with weekends and holidays)
Cost: $41/timer x 8 timers = $328
Payback in 1.68 months!!
22
HUMAN APPROACH
• Presentations to leadership
• Establish an Energy Steering Committee
• All-facility public kick-off
• Network of peer champions (44 EPAs!)
• Tracking employee suggestions and providing
feedback on implementation status
• Posters in employee break rooms, lounges
and bathrooms
• Share stories about employee participation
23
COMMUNICATE AND CELEBRATE!
Last quarter Ridgeview
saved 16% on its energy
bills—more than $41,000 in
savings! Now that’s
something to get
batty about!
We’re just
batty about
saving energy
at RMC!
• Progress updates
on RMC’s intranet
• All staff emails
from leadership
• Presentations
at staff meetings
• Messages on
paystubs and time
clocks
• Treats!
24
KEYS TO SUCCESS
• Visible leadership support for the program
• A designated employee assigned to coordinate
the effort
• A strong core team supporting the EEC
• Peer champions in each department/building
• Sharing success stories across the
organization
• Measure use/progress toward goal
• Communicating results
• Unified culture (notable at RMC)
25
KEYS TO SUCCESS
“Was amazing how much energy departments saved when
everyone did a little.”
“Learning about energy use has helped me become more aware
of my surroundings at work as well as noticing how it affects
my personal life. I’ve been able to cut my own energy bill as
well!”
“Great program with impressive results! I like the updates
on RidgeNet letting us all know the positive impact we've had
on the organization's energy use.”
“I use a lot of energy saving techniques at home and was
grateful
for the chance to implement them at work to help cut waste
and as a recognized effort by RMC to be more efficient.
THANK YOU!”
26
How could your
organization benefit from
behavior-based
energy efficiency?
27
Amy Anderson
General Manager
aanderson@class5energy.com
651-748-4370
www.class5energy.com
Todd Wilkening, CHST
Director of Facilities
todd.wilkening@ridgeviewmedica
l.org
952-442-2191 x5702
www.ridgeviewmedical.org

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Achieving Energy and Cost Savings in Healthcare

  • 1. ACHIEVING ENERGY & COST SAVINGS IN HEALTHCARE BY ENGAGING PEOPLE AND INSPIRING BEHAVIOR CHANGE May 23, 2013
  • 2. 2 LEARNING OBJECTIVES • Define “Behavior-Based Energy Efficiency” • Understand how a behavior-based energy efficiency program might be implemented • Understand the potential for energy and cost savings in a healthcare environment • Recognize the unique challenges associated with the healthcare setting • Decide if a behavior-based energy efficiency program may be right for your organization
  • 3. 3 WHAT IS BEHAVIOR-BASED ENERGY EFFICIENCY? Behavior-based energy efficiency (BBEE) is… … a method of reducing energy grounded in psychology and behavior that relies on individual choice and decision making to realize verifiable energy savings (BPA, 2013)
  • 4. 4 WHAT IS BBEE? • Behavior-based energy efficiency programs target specific organizational behaviors, such as: ― One-time behaviors (e.g., changing the settings on a thermostat) ― Habitual behaviors (e.g., turning off lights, only running the dishwasher when full) ― Purchasing decisions
  • 5. 5 WHY SUSTAINABILITY AT RMC • Do No Harm • Improve Community Health • Environmental Impact Improvement • Enhancing a Culture • Improve Healing Environments • Improve Employee Satisfaction • Improve upon the Business
  • 7. 7 BEYOND PROCESSES • Plant upgrades • Lighting upgrades • Building controls • Virtualization • Single use devices
  • 9. 9 “OH, THE THINGS THEY DO” • Busy • Focused • Unaware • Not educated as to the “why” • Internally motivated • No measurement, no worries “Humans are the Hazard in the System”
  • 10. 10 PEOPLE AND PARTNERSHIPS Recycling Rate • 42% Construction • Recycling rate of 54.3% • Most building items purchased locally • Native Plantings Single Use Devices (SUDs) • Annual savings = $111,175 Electrical Usage • 23% reduction Natural Gas Usage • 19.6% reduction Water/Sewer Usage • 28.1% reduction
  • 11. 11 THE PARTNERS • CLASS 5 Energy ―Consulting firm in White Bear Lake, MN, established in 2002 ―Specializes in behavioral energy programs, energy plan development, utility tracking and energy efficiency resources ―Clients in K-12 schools, higher education and office/commercial
  • 12. 12 THE PARTNERS • Ridgeview Medical Center (RMC) ―Independent nonprofit, regional healthcare network west of Twin Cities ―More than 1,500 employees ―13 buildings: hospital, clinics, professional buildings and a hospice home ―More than 460,000 sq. ft. and an annual utility budget of more than $1.2 million
  • 13. 13 GOALS FOR CLASS 5 • Implement program components and adapt as needed for a healthcare setting • Develop new components specific to the healthcare sector • Obtain feedback from RMC staff on the effectiveness of the program • Evaluate the impact of the program on RMC’s overall energy savings
  • 14. 14 GOALS FOR RMC • Increase RMC’s energy efficiency • Engage staff in energy saving behaviors • Achieve an 8% reduction in energy costs • Work towards ENERGY STAR® recognition for RMC’s buildings • Run an effective program without affecting quality or patient and staff safety
  • 15. 15 RESULTS 15 months 6% reduction in energy use $75,000 in energy cost avoidance No asset projects
  • 16. 16 RESULTS Nearly 400 of RMC’s 1,575 employees responded to a survey asking how the program affected their attitudes and behaviors: • 89% are more likely to engage in energy saving behavior • 83% have a more positive attitude toward saving energy • 91% learned that individuals can have an impact on organizational energy costs • 94% would be willing to submit an energy saving idea to their department if they had one
  • 17. 17 THE SCIENCE Technical Approach: Improving business systems and processes Human Approach: Managing the people side of change Convergence over time = CHANGE MANAGEMENT Organizational Change Management
  • 18. 18 WHAT IS THE CLASS 5 PLAN? Guided process for achieving organizational energy efficiency • Identify an internal champion/team of champions • Gain leadership buy-in and support • Create energy steering committee, establish guidelines • Educate and engage employees and peer champions • Implement low- and no-cost operational strategies • Track energy use
  • 19. 19 HOW DOES IT WORK? • Educate people about why a change is needed and how it will be achieved • Identify opportunities for both short- and long-term wins • Engage people and asking them to do their part • Measure and track progress (using data) toward the goal • Communicate and celebrate results The Plan uses a dynamic, iterative change management process:
  • 20. 20 TECHNICAL APPROACH • Adjusting thermostats in all areas except patient rooms and having setbacks for areas that are not open 24/7 • Putting timers on equipment that can be shut off without affecting patient care • Utilizing power-saving functions on equipment and computers • Asking employees to turn off lights, monitors, printers, etc. • Delamping in overlit areas
  • 21. 21 TIMERS ON HYDROCULATORS Calculated savings: $0.125 per KWH x 8 hours/day x 365/days a year = $365 dollars per year per unit $365 x 8 units = $2,920 in savings per year minimum (additional savings with weekends and holidays) Cost: $41/timer x 8 timers = $328 Payback in 1.68 months!!
  • 22. 22 HUMAN APPROACH • Presentations to leadership • Establish an Energy Steering Committee • All-facility public kick-off • Network of peer champions (44 EPAs!) • Tracking employee suggestions and providing feedback on implementation status • Posters in employee break rooms, lounges and bathrooms • Share stories about employee participation
  • 23. 23 COMMUNICATE AND CELEBRATE! Last quarter Ridgeview saved 16% on its energy bills—more than $41,000 in savings! Now that’s something to get batty about! We’re just batty about saving energy at RMC! • Progress updates on RMC’s intranet • All staff emails from leadership • Presentations at staff meetings • Messages on paystubs and time clocks • Treats!
  • 24. 24 KEYS TO SUCCESS • Visible leadership support for the program • A designated employee assigned to coordinate the effort • A strong core team supporting the EEC • Peer champions in each department/building • Sharing success stories across the organization • Measure use/progress toward goal • Communicating results • Unified culture (notable at RMC)
  • 25. 25 KEYS TO SUCCESS “Was amazing how much energy departments saved when everyone did a little.” “Learning about energy use has helped me become more aware of my surroundings at work as well as noticing how it affects my personal life. I’ve been able to cut my own energy bill as well!” “Great program with impressive results! I like the updates on RidgeNet letting us all know the positive impact we've had on the organization's energy use.” “I use a lot of energy saving techniques at home and was grateful for the chance to implement them at work to help cut waste and as a recognized effort by RMC to be more efficient. THANK YOU!”
  • 26. 26 How could your organization benefit from behavior-based energy efficiency?
  • 27. 27 Amy Anderson General Manager aanderson@class5energy.com 651-748-4370 www.class5energy.com Todd Wilkening, CHST Director of Facilities todd.wilkening@ridgeviewmedica l.org 952-442-2191 x5702 www.ridgeviewmedical.org

Editor's Notes

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  6. Todd – Technical improvements. Describe and transition the missing link of behaviors in people
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  8. Todd – Talk about people. Why not like home.
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  13. Todd—Tie back to “Why Sustainability at RMC?”
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  20. Todd -- A hydrocollator “hot pack” is used for pain management and in physical therapy. It’s a quilted device filled with a clay-like substance that traps heat. In patient care, it is heated, wrapped in damp towels, and applied to a part of the body needing moist heat. Ridgeview Medical Center in Waconia, Minnesota, had eight hydrocollator heating units at its outpatient sites, units that were maintained at full temperature around the clock. Based on an employee’s suggestion, the facilities team purchased portable, programmable 120-volt timers at $41 each and attached a timer to each heating unit.  Each timer was programmed to maintain the hydrocollator at full temperature all day for patients’ use and to turn it off during the night and on weekends and holidays. Hydrocollators that had previously been “on” continuously were now turned on only during the periods when they might be needed—eight hours per day. The facilities team calculated that Ridgeview would save at least $365 per unit per year in electricity costs—a total of nearly $3000 per year. Ridgeview recouped its investment in less than two months, and over the next ten years the medical center will save nearly $30,000.
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