Fueling Change

HealthTrust offers Energy-as-a-Service to reduce energy costs

Healthcare facilities across the country face an emerging need to reduce their energy consumption from both an expense management and a sustainability standpoint. To meet this need, HealthTrust has entered into a national agreement with Bernhard ProStar (BPS) to provide Energy-as-a-Service (EaaS) solutions for HealthTrust members.

What is EaaS?

EaaS provides an alternative to the typical customer-funded or financed project. “In the EaaS model, healthcare providers partner with us to manage their complete energy infrastructure needs,” says Caleb Haynes, VP of Business Development for BPS. “BPS offers HealthTrust members a comprehensive choice of services, including engineering design, construction, operations and maintenance, and financing that will reduce energy consumption and their carbon footprint while providing unique financial and operational benefits.”

How will EaaS help members?

Rising costs, tighter margins and competing needs for capital continue to prevent many healthcare providers from proactively addressing deferred maintenance, energy infrastructure upgrades, large-scale renovations or new construction projects. By shifting these capital needs to an operational expense, BPS EaaS solutions provide clients with efficient and resilient infrastructure coupled with the long-term guaranteed benefits of budget certainty and risk transfer. Whether an organization’s goals include enhancing patient delivery to the local community or sustaining environmental resources, the EaaS program can be tailored to guarantee results and allow the provider to focus resources on core healthcare operations.

The program impact

“EaaS is a truly custom solution developed to create impactful value to each organization,” explains Haynes. BPS strives to meets clients’ key objectives in all aspects of the program with brand-neutral delivery. “The solution is attractive for all providers because it delivers alternative, off-balance sheet capital that doesn’t compete with the capital investments needed for hospital operations,” says Haynes. “BPS raises the capital required for the project and can also raise excess capital that the provider can reinvest back into their core business.” While potential savings vary by facility, BPS customers typically realize utility savings of 30%-40% each year.

How the program works

“We begin by engaging with a healthcare organization in a risk-free due diligence process to identify key objectives, infrastructure needs and operational savings potential,” says Haynes. “BPS will then develop a unique scope of work, including infrastructure renewal and optimization services that aim to reduce energy usage and demand (gas, electric and water) and provide the greatest financial benefit to the facility.” Typically, within 60 to 90 days of the due diligence period, BPS will deliver a comprehensive first offer to the health system’s leadership that aligns with key objectives for each facility.

“We are excited about the future of this program and the additional opportunities the BPS partnership will bring to the HealthTrust membership,” says Allen Wright, SVP of Commercial Products Strategic Sourcing for HealthTrust. “BPS can also partner with the HealthTrust Energy team for a collaborative approach that addresses both the supply and demand aspects of utilities. While BPS focuses on demand, the HealthTrust Energy team looks at the supply side and how a facility purchases its utilities, how it hedges risk and manages the utilities. We look forward to seeing the impact of these complementary services for our membership,” says Wright.

Member spotlight

Louisiana Children’s Medical Center (LCMC) recently entered into a 15-year agreement to provide EaaS solutions at seven of its regional facilities. It transfers the risk of operations and maintenance of LCMC Health’s central utility system to BPS and allows for state-of-the-art infrastructure upgrades. This 15-year EaaS agreement has a projected life-cycle cost savings of $96 million. HealthTrust awarded LCMC with its 2021 Member Award for sustainability for this project.

Another Louisiana-based health system entered a 20-year agreement with BPS to implement an energy asset concession that provides capital renewal, deferred maintenance, energy improvements, and ongoing operations and maintenance of the hospital’s energy infrastructure. The scope of the project spanned 1.4 million square feet of the organization’s main campus, and the organization exceeded its $2.1 million energy savings guarantee.

Determine the potential savings & sustainability impact an EaaS solution could have on your organization. Email BPS VP of Business Development Caleb Haynes at chaynes@bernhard.com