BUFFALO GROVE, Ill., March 20, 2003 — Ohio’s Summa Health System is undergoing a $4.2 million building infrastructure upgrade to reduce operating costs and improve patient and staff comfort.
Remarkably, Summa will accomplish these improvements with no capital outlay, thanks to a $4.2 million one-year boiler and lighting system upgrade financed through an innovative performance contract arrangement with Siemens Building Technologies Inc.
Siemens is guaranteeing $5.8 million in energy savings and $2.3 million in labor savings over a 10-year-period at Summa’s Akron City and St. Thomas hospitals. Most of the savings will result from new highly efficient, labor-saving boilers just installed at St. Thomas.
Siemens used the project’s guaranteed savings to finance the $4.2 million project, which Summa will repay within seven years. The balance of the $8.1 million projected savings should leave Summa with substantial funds for future infrastructure improvements.
“As important as cost savings, improving patient and medical staff comfort and safety were also necessary goals for this project to achieve,” said David Jean, Summa’s director of facilities engineering. He added that improved boilers and heat distribution throughout facilities will better regulate temperatures. In addition, once conventional ballast fluorescent lighting is replaced with energy-efficient electronic ballast fluorescent lamps, brighter lighting will improve visibility and make interior spaces more cheerful.
“Our mission has always been to provide the best health care possible, and the Siemens performance contract is an innovative approach that helps Summa Health System accomplish its capital improvement projects without having to make any capital outlay to achieve these results,” said Bob Harrigan, Summa’s executive vice president and COO.
After a careful analysis of the steam heat distribution system at St. Thomas Hospital to identify opportunities to reduce waste, new energy-efficient package boiler systems went on line in January to replace ones in operation since the early 1950s.
The Akron City Hospital Campus has a boiler plant, but it has been unused for some time. Instead, the facility is heated by steam heat purchased from a privately owned steam plant. Purchased steam costs will now be going down, due to a purchased versus in-house steam cost analysis performed by Siemens that helped Summa negotiate a better rate.
The performance contract also specifies replacement of obsolete energy management systems at Akron City and St. Thomas with the Siemens APOGEE Building Management System to automatically control heating, ventilating, air conditioning and lighting systems to maximize energy and operating efficiencies and interior comfort even more. The net result will be standardized, state-of-the-art building management systems at Akron City, St. Thomas and Summa’s community hospital Cuyahoga Falls General where the most current Siemens system is already in place.
Summa officials said Siemens was selected for the project after a careful evaluation of competitive proposals and because of Siemens’ proven performance over the years with other energy-related projects within the Summa Health System. Siemens has performed similar energy performance projects for Metro Health Medical Center, Cleveland, and St. Elizabeth’s Hospital, Youngstown.
About Siemens and Summa
Siemens Building Technologies Inc. is one of Siemens’ operating companies in the United States and is the North American affiliate of Zurich-based Siemens Building Technologies (SBT) AG, the leading single-source provider of cost-effective facility performance solutions for the comfort, life safety, security, energy efficiency and operation of some of the most technically advanced buildings in the world. In North America, SBT employs more than 8,500 professionals and provides local service from more than 400 locations coast-to-coast. Worldwide, SBT employs 36,000 and serves customers in more than 125 countries.
Siemens AG, headquartered in Munich, is a global electronics and engineering company. It employs 426,000 people in 192 countries and reported worldwide sales of more than $77.8 billion in fiscal 2002 (10/1/01 – 9/30/02).
The United States is Siemens’ largest market in the world, with sales of more than $21.5 billion in fiscal 2002 and more than 74,000 employees in all 50 states. Corporate headquarters for Siemens’ U.S. businesses are located New York City. For more information: www.usa.siemens.com.
Summa Health System is one of the largest integrated health systems in Ohio. The health system encompasses a network of hospitals, including Akron City, St. Thomas and Cuyahoga Falls General Hospitals, three community health centers, SummaCare Health Plan, Akron City Health System and the Summa Foundation.