Return on Investment
Hospital Case Studies
Click here for CGHI Return on Investment Calculator Framework
Return on Investment Project Calculations
| Number/Metric | Shriners Hospital: Linkage-less Burner Controls | Northwestern Hospital: Kitchen Demand Control Ventilation | St. Bernard Hospital: Lighting Retrofit |
|---|---|---|---|
| Project Numbers | |||
| - Total Project Cost | -$38,686 | -$85,045 | -$9,447 |
| - Incentives |
$16,892 | $49,233 | $4,723 |
| - Project Cost after Incentives |
-$21,794 | -$35,812 | -$4,724 |
| - Annual Savings | $16,800 | $33,824 | $5,117 |
| Financial Metrics | |||
| - Simple Payback (Yrs) | 1.30 | 1.06 | 0.92 |
| - Net Present Value of Project | $125,772 | $261,091 | $14,641 |
| - Internal Rate of Return | 336.4% | 1,701.4% | N/A |
| - Net Present Value of Savings | $147,035 | $296,030 | $19,250 |
| - Yearly Return on Investment | 67.47% | 82.66% | 101.87% |
| - Cost of Delay (5 Years) | $162,847 | $330,484 | $35,343 |
| Net Patient Revenue Equivalent | |||
| - Incentives (Loss if not leveraged) | $844,600 | $2,461,650 | $236,150 |
| - Project | $6,288,612 | $13,054,565 | $732,062 |
| - Total (Loss + Project) | $7,133,212 | $15,516,214 | $968,212 |
Shriners Hospital
Linkage-less Burner Controls, 4 Boilers (see above for detailed calculations)
| Measure | Amount |
|---|---|
| Estimated Project Cost |
$38,686 |
| Incentive Amount |
$16,892 |
| Estimated Payback |
1.3 years w/incentive |
Northwestern Memorial
Kitchen Demand Control Ventilation (see above for detailed calculations)
| Measure | Amount |
|---|---|
| Project Cost |
$85,045 |
| Gas Incentive | $32,608 |
| Electric Incentive | $16,625 |
| Net Project Cost |
$35,812 |
| Energy Savings |
$33,824 |
| Estimated Payback |
1.1 years w/incentive |
St. Bernard Hospital
Lighting Retrofit (see above for detailed calculations)
| Measure | Amount |
|---|---|
| Project Cost |
$9,447 |
| Incentive Amount |
$4,723 |
| Net Project Cost |
$4,724 |
| Energy Savings |
$4,117 |
| Estimated Payback |
0.92 years w/incentive |