Design & Construction

Can Going Green Get You Into the Black?

By Tracy Granzyk Wetzel

Hospitals realizing short- and long-term benefits of eco-friendly design

As hospital administrators explore innovative measures to keep their institutions in the black, going green may generate cost savings for years to come. For hospital leadership teams, achieving the U.S. Green Building Council's Leadership in Energy & Environmental Design certification may seem a daunting undertaking, but those in the know say there are measureable financial and human benefits.

"We still hear anecdotal conversation at conferences that it costs 25 to 30 percent more to do a green hospital," says Gail Vittori, co-coordinator of Green Guide for Health Care and founding chair of the LEED for Health Care Core Committee. Results from her 2009 study, "Demystifying First Cost Green Building Premiums in Healthcare," however, show first cost premium variability to be 0 to 5 percent before financial incentives, such as utility rebates or foundation contributions were applied.

But don't just take GGHC's word for it. Ask those who have completed projects, like Bob Bonar, president and CEO of Children's Medical Center in Austin, Texas, a LEED Platinum facility.

"I would do it again in a minute with very little debate, and I was skeptical," he says, noting that there are both financial and staffing benefits. "We have done focus groups and surveys and our findings show the new work environment to be directly related to job satisfaction," he says referring to low staff turnover.

Financial payback accrues as well. Bonar predicts a 5.9-year payback period, thanks to reduced energy utilization.

Key to continued success of running a green hospital is management of the high-performance building once it is complete.

"People are getting their LEED certification and walking away, thinking the building will run itself," says Alan Bell, facility director at Dell Children's. "It took us three to four months to get the building running to meet our energy metrics, and if owners aren't staffing facilities to run the building the way it was designed, the building will not perform to the level intended."

Whatever the perceived challenges of LEED certification, the number of health care projects is multiplying. "Prior to 2009, there were 703 health care projects registered for LEED certification. In 2009 alone, there were more than 1,300 registrations," according to Vittori.

As related demand and experience increases, the cost of building green decreases, Vittori says.

For example, as the use of environmentally conscious building materials becomes business as usual, costs equalize, and hospital leadership, once indoctrinated, can streamline future projects, saving additional dollars.

Those who have successfully completed LEED projects are logical resources for others just starting out. Many individuals are willing to share their own experiences, helping to lower the slope of the learning curve with a resulting cost savings to the hospital.

This article 1st appeared in the July 2010 issue of HHN Magazine.

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