Childress Regional Medical Center (CRMC) and McKinstry, a local leader in design, construction and energy services, have announced the completion of their energy savings performance contract (ESPC) to update aging equipment, resulting in total operational savings of $189,219 per year. 

This project consisted of a number of improvement measures designed to upgrade the facility’s energy performance, reduce maintenance costs and improve occupant comfort. Upgrades included infrastructure replacements, installation of new air control and chilled water systems, HVAC and VAV box replacements and improvements to the hot water system.

“Because CRMC serves a large rural population as the primary healthcare facility of the region, we saw these improvements as a critical investment in the community,” said John Henderson, CRMC CEO. “We’re also excited to announce that these much-needed upgrades were completed at no cost to taxpayers thanks to performance contracting.”

Operating within a predefined budget, the ESPC provided a cost-effective way to improve hospital systems by using energy savings to help pay for the upgrades.

McKinstry worked closely with hospital administrators to optimize equipment and update systems for the most automated and efficient energy use, achieving $33,830 in guaranteed annual utility savings and $189,219 in annual operations savings and capital cost avoidance. In the eight-month period while construction was being completed, the hospital accrued more than $25,000 in energy savings, putting it on trajectory to surpass the guaranteed savings results in the next year.

“Childress Regional Medical Center has been a trailblazer for rural Texas hospitals,” said Skip Woessner, McKinstry project director. “Their decision to forge ahead with energy upgrades demonstrates their long-term vision for the health and sustainability of the region.”