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THURSDAY, OCTOBER 14, 2010

HOSPITALS: Hospitals Can Reduce Energy Expense by 90%, new 7 Point System

Circulate:   Must read for hospital executives

Hospitals Represent a huge use of energy.

New Concept Can Save Billions in Energy Expense of Hospitals and Clinics

A collaboration of energy and business experts, led by Environmental Solutions, Wind-Inc and CorPlan Corrections has created a coordinated system that combines solar water heating, wind power and 7 points that for many hospitals and clinics can save 85% to 90% of their energy costs. This could be an important boon for the medical industry. “No one has created a coordinated system of energy saving concepts, with specific equipment in a customized format for hospitals that truly will save this much energy cost, it could be a game changer.” said Ben Boothe,Chair Of Wind Inc (http://www.wind-inc.com).

Considering that an average hospital uses $36,000 per month in energy, THIS PROPOSAL CAN REDUCE THE BILL TO $3,000 PER MONTH. (Many use much more, some 10 times more)
A 27% return on investment for business in renewable energy, makes near “net zero” electric bills possible. (Commercial and privately owned hospitals have access to federal tax rebates while public facilities have access to public bond financing and community economic development grants).

Some of the larger hospital facilities use larger amounts. One expert with experience in Hospital finances (http://www.benboothe.com) said: “We have some hospitals that use a megawatt or more.” Put simply, large hospitals are huge consumers of energy, and with this new “hybrid” approach, the savings potential runs into hundreds of millions.

There are over 3,000 hospitals in Texas, New Mexico, Arizona and California alone.
Utilizing an adjusted number of 3000 hospitals, with an average of 500 beds each each, these will use monthly electric power, averaging a minimum of approximately $120,000,000 per month in these 4 states alone.  A hospital is similar to a hotel, prison or university, with lodging, showers, food preparation, creating above average energy use. It is estimated that 27% of typical hospital energy bill is for heating water. The average patient uses 75 to 100 gallons of water per day, with 40 to 50 gallons of that being hot water, for showers, food, laundry and other needs. 60% of a hospital energy bill can be used for heating and cooling air.
The research study proposes a hybrid combination of 7 energy savings, using specific energy savings equipment, that can reduce the energy by 80% or more.
Allocation of energy expenses:

  • 25% of a prison energy expense is heating water.
  • 40% to 60% are for heating, cooling air.
  • Other equipment, lighting, computers, cooking represent 12% to 20% of a prison energy bill.

Impact of savings on Value:
The APPRAISAL JOURNAL says: “For every $1 saved, because of energy savings upgrades, the value of a building goes up 20 times!” Therefore, an energy savings of $10,000 per year, results in a value increase of $200,000.

Real estate experts and valuation models prove that a facility that has a lower electric bill increases the value of the real estate facility substantially. “Our most conservative valuation model indicates that an immediate value increase occurs to a facility that does not have the overhead of high energy bills.” said Ben B. Boothe, appraisal expert. “In most cases, $1,000,000 spent on renewable energy equipment, will indicate a value increase by a factor of 1.8 to 2.2 or $1,800,000 to $2,200,000, depending upon the specific application.”

For data and information on hospital values contact: BBAR Inc.http://www.benboothe.com

NOTE THE REAL NUMBERS THAT A BUSINESS EXECUTIVE OR INVESTOR WOULD CALCULATE IN COST/SAVINGS FOR A HOSPITAL FACILITY, WITH APPROXIMATELY 500 PATIENTS:


THESE ARE KEY ALTERNATIVES. A FACILITY CAN MIX AND MATCH OR SELECT THE ONES THAT ARE MOST RELEVENT TO THE UNIT. THIS UNIQUE “SYSTEM” APPROACH WILL UNIFY THE SOLAR WATER AND WIND SYSTEMS, PASSIVE HEATING SYSTEMS, WHILE STRONGLY RECOMMENDING KEY CONSERVATION MEASURES.

Hospital with a monthly energy bill of $35,000 per month.

  1. Install “Hospital Adapted” hybrid passive solar water heating system……………………………………………………20% savings = $7,000 per month
  2. Utilize either or both, white roof coating, and radiant barrier…………………………………………………….9% savings= $3,150 per month
  3. Shading, awnings, angular screening strategic landscaping to provide sun heat shielding………………………………………………….4% savings = $1400 per month
  4. Install one 250 kWh turbine, with Wind-Inc.’s sizing and modification for prisons,
  5. will produce enough electricity to save……………………..= $12,000 per month.

  6. Exchange or upgrade lighting, appliances, cooking, laundry, components to optimize energy savings on all electric equipment, including Energy Star to save 3%= $1,050 per month
  7. Increase insulation in ceilings and walls (recommend blow on material) 9%= $3,150 per month
  8. Utilize dump load heat (free by product of energy conversion with wind turbine) and passive heat from hot water circulation lines of solar system to heat large areas of facility. This is free air conditioning, system concept by Wind-Inc and very efficient. saving………………………………………………………………………15%= $5,250 per month

TOTAL SAVINGS PER MONTH…………$33,000 per month
TOTAL SAVINGS PER YEAR…………..$396,000 per year
TOTAL SAVINGS OVER 30 YEARS….$11,880,000 (NOT INCLUDING ANY ENERGY RATE INCREASES)
TOTAL SAVINGS OVER 30 YEARS INCLUDING RATE INCREASES….$17,800,000

    Economic Model

    Cost of implementing the above: Solar water heating system including installation……………..$ 800,000 Roof Coating and radiant barrier…………………………………$   82,000 External heat shielding………………………………………. ……..$   62,000 Wind Turbine including installation…………………………….$ 1,200,000 Upgrade internal electric devices and optimization…………..$   93,000 Insulation upgrade…………………………………………………….$   49,000 Internal Heating System”by product heat” from wind& solar $ 81,000 TOTAL COST………………………………………………………..$2,367,000 IF COMMERCIAL OR BUSINESS 30% GRANT REIMBURSAL ……………($710,000) DEPRECIATON EACH YEAR FOR 5 YEARS $473,400 (If in a 38% tax bracket then the actual cash saved per year is $179,892)………………………………….(179,892) NET COST AFTER GRANTS OR INCENTIVES IN FIRST YEAR..$1,477,108 Net annual income or savings in energy cost…………………….$396,000 Net annual return $396,000/$1,477,108 = 27% ROI YEAR TO PAY BACK WITH TAX INCENTIVES : 3.73 YEARS NET ANNUAL RETURN WITH NO TAX INCENTIVES:= 17%ROI YEARS TO PAY BACK WITH NO TAX INCENTIVES 5.98 YEARS (Note: these are conservative energy consumption figures, many hospitals use much more energy, and sizing to need is feasible, but Wind Inc offers declining costs as a percentage expense due to quantify of scale purchasing and savings on installation costs) ON A NATIONAL LEVEL, ESTIMATE ENERGY SAVINGS TO HOSPITAL  BUDGET FOR 10,000 HOSPITALS : ANNUAL SAVINGS: 10,000 X $396,000 = $3,960,000,000 (NEARLY 4 BILLION DOLLARS A YEAR) 4396,000,000 ON A STATE LEVEL, ESTIMATE ENERGY SAVINGS TO STATE TAXPAYERS of Texas FOR 1000 hospitals:   1000 x 396,000 = 396,000 = $396,000,000 per year. Over 30 years in Texas, as example could save the taxpayers , patients or communities billons of dollars. NOTE: PRIVATE OR BUSINESS OWNED FACILITIES HAVE THE ADVANTAGE OF TAX DEDUCTIONS AND INCENTIVES PUBLIC FACILITIES HAVE THE ADVANTAGE OF PUBLIC FUNDING, AND BONDING PROGRAMS FURTHERMORE, MUNICIPAL CAPITAL HAS FINANCING, BONDING, AND LEASE PURCHASE PROGRAMS AVAILABLE WORKING WITH THIS COLLABORATIVE TEAM CONTACTS AND DATA for more information or specific bids for a facility contact: Environmental Solutions (http://environment-solutions.com) BBAR Inc. and Boothe and Associates, Appraisers, Environmental Consultants: (http://www.benboothe.com) Wind-Inc. (http://www.wind-inc.com) CorPlan Corrections (http://www.corplancorrections.com)


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About benboothe

Business Executive, bank founder and president of banks for 20 years, as well as International World Bank consultant. Ran for US Congress and for Mayor of Ft.Worth. Publisher of: Global Perspectives (http://bootheglobalperspectives.com) and owner of several businesses. One of our businesses does appraisals and another environmental consulting. Wind-Inc., distributes Wind Turbines.
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