Hospital Saves Over $400,000 Annually with HVAC Performance Optimization Program
EH&E conducts comprehensive energy-savings study, identifying multiple energy conservation measures.
A New Hampshire hospital set out to aggressively reduce its energy emissions and operational costs. However, doing so meant overcoming the financial and resource constraints common across the healthcare sector.
EH&E offered an approach to performance optimization that addresses these realities. Our program relies on fine tuning existing systems – not major capital expenditures – and utilizes a pay-for-performance contract model, significantly reducing risk and allowing the hospital to confidently move forward with meeting energy-reduction goals.
The seven-story, 415,000 square-foot hospital achieved more than $400,000 in calculated annual savings from the program. Expectations were exceeded when the organization saw measurable energy reductions that were double the originally projections and a short-term payback within seven months.
From Strategy to Results
With a complex mix of legacy and modern systems, reflecting multiple expansions since the hospital’s original construction in 1956, our client required a targeted approach to identify cost-effective energy conservation opportunities that would not disrupt critical hospital operations.
EH&E conducted a comprehensive energy optimization study and collaborated closely with the client’s staff, performing onsite assessments and system performance analyses. This work identified key opportunities to optimize HVAC operations, improve controls, and repair underperforming components to enhance both energy efficiency and comfort.
By implementing various energy conservation measures (ECMs), our client significantly improved the efficiency of its mechanical systems and reduced its energy footprint. The project progressed through multiple phases: Study, Analysis, Implementation, and Verification, with an additional implementation phase added to address interdependencies among identified ECMs.
Beyond the measurable reductions in energy use and cost, the project established a strong foundation for continued optimization, enabling the hospital to reinvest savings into patient care and facility enhancements.
Key Measures and Results
During the study and analysis phase, EH&E identified six high-impact ECMs. Each was evaluated for potential energy reduction, cost savings, and implementation feasibility. Together, the implemented measures deliver substantial operational and financial benefits for the hospital:
While the table above summarizes each measure implemented and its savings, the results were achieved through careful sequencing, room-by-room system review, and close coordination with the facility management team. The examples below take a closer look at several key measures and how and why they were implemented.
Occupancy Scheduling
Many hospitals assume HVAC systems must run 24/7 to maintain safe conditions, but not every space requires continuous operation. EH&E conducted a room-by-room analysis to determine which areas were served by each air-handling unit and identify administrative and non-critical spaces that were unoccupied after hours. By implementing occupancy-based scheduling, these systems now power down when not needed, cutting wasted energy while maintaining comfort and reliability in patient care areas. The change delivered about $32,000 in annual savings.
Discharge Air Temperature (DAT) Resets
Many hospitals’ air-handling units maintain the same supply air temperature year-round, regardless of outdoor conditions. EH&E adjusted these controls so discharge air temperature now responds to the weather, running warmer in mild conditions and cooler on hot days. This simple change eliminated simultaneous heating and cooling, reducing chiller and reheat use and saving about $194,000 per year.
Variable Air Volume (VAV) Flow Setbacks
Hospitals often repurpose spaces and rooms, but ventilation settings don’t always keep up. EH&E’s assessment found several areas still controlled to exam-room standards despite being converted to non-clinical uses, and zones maintaining fixed airflow in both heating and cooling modes. After correcting static pressure, economizer, and discharge air temperature controls, EH&E adjusted VAV setpoints to match each space’s current and applicable ventilation requirements under ASHRAE and FGI guidelines. Air flow was reduced during steady and heating conditions, improving efficiency without affecting comfort, delivering over $95,000 in annual savings.
Looking Ahead
The hospital’s success demonstrates how data-driven performance optimization can deliver measurable savings without major capital investment. EH&E’s team helps hospitals and research facilities identify practical, low-risk opportunities to reduce energy use, improve system performance, and reinvest savings where they matter most. Learn how EH&E can help your facility achieve similar results.