Bernhard and Midland Health announced today a 15-year energy asset concession arrangement which will address significant capital renewal, deferred maintenance, and energy optimization priorities at Midland Health’s main and west campuses. The transaction, which marks the continuation of a 10+-year old working relationship between Bernhard and Midland Health, will deliver substantial upfront cash and year-over-year cost savings to the health system.
“We are thrilled to continue building our partnership with Midland Health,” said Bernhard’s Vice President of Business Development Rob Guthrie. “Bernhard’s Energy-as-a-Service program will create notable cost savings for the hospital system, enabling Midland to continue to enhance its patient care and better serve the community.”
The improvements to Midland Health facilities will generate a minimum of $664,000 in annual utility cost savings guaranteed by Bernhard. Once the improvements have been made, the health care facility will join an A-rated peer group comprised of Ochsner Health, Franciscan Missionaries of Our Lady Health System, East Alabama Medical Center and several other southeastern health systems that have each executed recent agreements with Bernhard.
“Bernhard has long been a trusted partner to Midland Health,” said Midland Health Senior Vice President COO/CFO Stephen Bowerman. “Advancing our partnership through an Energy Asset Concession Arrangement just made sense. This transaction aligned with Bernhard’s expertise will provide significant improvements to our utility plant, provide long term energy efficiency and position the hospital to continue to provide high quality care to Midland and our surrounding community for years to come.”
Bernhard’s innovative energy asset concession program transfers the risk of energy asset renewal to Bernhard over the full 15-year term, eliminating over $3 million from Midland Health’s future budgets. At the conclusion of the agreement, the energy assets are to be handed back to Midland Health in good working order and at no cost to Midland Health. The agreement represents another milestone in Bernhard’s extensive history in Texas, following more than 100 energy optimization projects across the state with nearly 40 healthcare entities.
To learn more about the project, click here.