ensuring that savings are made
“Changing the converters was something that the hospital’s general
management and its environmental management teams had
wanted to pursue for quite some time. But higher priorities always
seemed to arise and the investment was deferred. The benefit of
working with Salix Finance has been that the money was ring-fenced
and so could not have been diverted to any other purpose.”
though testing on a limited scale will One of these has far-reaching implica- It is highly unlikely, however, that all - or
produce the data on which the case can tions for the way that staff ‘on the ground’ indeed many - of them would have pro-
be made. Installing reflective panels can assume greater responsibility for ceeded. “Changing the converters was
behind radiators is one such example of a energy usage. “When the hospital was something that the hospital’s general
small investment which has exceeded ex- built in the 1970s, it had been designed management and its environmental
pectations by reducing the amount of heat earlier and employed ‘60s energy tech- management teams had wanted to pur-
lost by being absorbed into adjacent wall nology, based on four steam ring ‘mains’ sue for quite some time.
surfaces and reflecting it into the room. around the building. “But higher priorities always seemed
Energy consumption has fallen signifi- “Our aim is to divide the hospital into to arise and the investment was deferred.
cantly: an estimated payback within 2.72 smaller heating zones in which staff are The benefit of working with Salix Fi-
years was seen as sufficiently short for able to adjust the temperature independ- nance has been that the money was
the case to be made had the actual sav- ently of the rest of the building: they ring-fenced and so could not have been
ings fallen short of those expectations. would not have to leave windows open diverted to any other purpose.”
The initiatives taken with the support and wasting energy as their only way of
of the Salix-backed loan fund achieved lowering the temperature. This particu-
a saving of approximately 288 tonnes of lar initiative is on the drawing board and
Applying principles elsewhere
carbon by the end of 2008: financial sav- will be sought.” Notwithstanding the high independent
ings will continue at an annual rate of ratings which Frimley Park has earned
around £24,454 for the economic life of for the quality of its services, the hospi-
the investments.
Additionality conditions
tal is not untypical of foundation trust
Salix Finance has defined its role as pro- hospitals in its management and busi-
Apply loans to further projects
viding ‘additionality’. The organisation ness ethos.
applies public funds primarily to enable Reducing carbon emissions is an ob-
As the examination of Salix Finance’s investment which could not otherwise jective which all of these institutions
operating principles discovers (page 24 be put in to practice: the loan funds that have had to take on board alongside their
of this edition), the loan made by the or- it established are not to be regarded just health and commercial objectives.
ganisation to a qualifying institution is as a cheap source of capital. The Salix Finance contribution to this
ultimately repayable by the institution In the case of Frimley Park Hospital equation has been the ability of the team
but may be applied to subsequent rounds NHS Foundation Trust, could any of the at Frimley Park to assign the same pri-
of approved investments. improvements which it has made have orities to carbon reduction as they have
The same criteria for payback period been funded without the involvement of clearly done over the years to delivering
and total energy cost remain in place, Salix? clinical excellence within a not-for-
however. Frimley Park has been prepar- In strict accounting terms, it is wholly profit business environment.
ing to build on the base of carbon sav- reasonable that the Trust – which has The Frimley Park ‘model’ for estab-
ings achieved in its first round. extensive control over the funds at its lishing a Salix Fund is one which lends
According to Kwan Cheng, there are disposal – could have financed every itself readily to the more than 120 Foun-
three new projects waiting to be one of the carbon reducing measures dation Trusts which are currently in
implemented. identified by Ms Cheng. place. §
34
34
The Informed Executive
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