RETROFIT IN HVAC
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Getting the New Hospital Programme right – save energy & self-fund
The UK government’s revised New Hospital Programme (NHP) promises a long-awaited transformation for the NHS estate. Drawing on his own company’s experience creating the UK’s first Net Zero Community Hospital in Rye, Steve McGregor, Executive Chairman for the DMA Group, discusses how sustainable, cost-effective building transformation is key to upgrade success
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any of the UK’s hospitals are in a state of disrepair, and overall, we do not have enough healthcare establishments to
service the growing demands on the NHS. To meet this challenge, the NHP was launched in 2020, with a promise of 40 new hospitals by 2030. Sadly, the scheme quickly ran into difficulty. By 2024 it was clear the programme was not achievable as originally planned. Labour has reset the NHP model, committing to the delivery of the originally proposed hospital upgrades. The priority is to focus on unsafe hospitals first, namely seven autoclaved aerated concrete (RAAC) hospitals. Overall, more than 70 hospitals will benefit – 40 new ones, and 30+ retrofits. The unrealistic 2030 deadline has been scrapped, with a credible timeline introduced that reduces stop-start risk: of benefit to contractors as well as the hospitals. Instead of bidding for one-off projects, suppliers can commit capacity to a progamme of hospitals over many years, supported by standardised design and multi-scheme frameworks. The hope is that this approach sustains skills, encourages investment and strengthens delivery confidence.
Service & sustainability
A key aim of the NHP is to also reduce the carbon footprint of the healthcare estate; to cut running costs, improve resilience and of course, contribute to Net Zero. In our own experience, factoring sustainability in from the start can lead to savings early, helping fund future upgrades. This approach is demonstrated through our work with Rye Community Hospital – the UK’s first carbon neutral hospital of its type. Showcasing what’s possible when trusts take
a future-ready approach, the savings made at Rye have contributed to improved hospital services, benefiting patients as well as bottom-lines. The results speak for themselves: 40% less energy use, 260 tonnes of CO2 saved every year, and cost savings reinvested into a lifecycle plan. The steps to achieve these results could provide a blueprint for all hospitals being upgraded under the NHP:
Step 1: Energy audit: This really is a crucial first step to understanding high energy users. Establish a clear kWh and carbon baseline, mapping Energy Conservation Measures (ECMs) by payback, risk and
16 November 2025
clinical impact. Aim for a staged, fundable roadmap focusing on quick, low investment wins that will immediately save money.
Step 2: Implement ECM recommendations: Following on from the energy audit, implement recommended ECMs to upgrade the hospital’s energy profile. Choose cost-effective, high-yield solutions first to quickly recover some capital, such as: ¡ LED Lighting: Replace traditional lighting with energy-efficient LED lights throughout. Implement automatic controls on all internal and external LED lighting to prevent energy waste. ¡ Pumps and fan motors: Upgrade to high- efficiency models and replace radiator valves to optimise ventilation systems, water circulation systems and reduce energy consumption. ¡ Electrical metering: Implement advanced electrical metering systems to accurately monitor energy usage, enabling data-driven decision- making and further energy-saving opportunities. ¡ Energy efficiency enhancements: Clean hospital heating systems and replace radiator valves to enhance heating system operational efficiency. ¡ Building Management Systems (BMS) configuration: All hospitals will have BMS ,but many will not be configured correctly. By setting up time of day scheduling and zoning, for example, heating and cooling is based on actual occupancy, immediately saving energy if these parameters have not been properly set. Integration with utility pricing can further reduce costs. In some cases, BMS systems will need replacing - particularly
where legacy technology is incompatible with AI. ¡ Electrify heating: Reduce carbon emissions by replacing outdated gas boilers with electric flow boilers, remove gas-fired kitchen equipment opting for energy efficiency electric alternatives. ¡ Solar PV & battery installation: In almost all cases, generating and storing electricity on site by installing solar PV paired with battery storage will offer a relatively quick return on investment, reducing grid dependency and enhancing resilience through outages.
Step 3: Reinvest savings: Use operational savings to fund ongoing lifecycle and maintenance plans. In the case of Rye, energy and cost savings have allowed the hospital to develop a five- year plan, with an annual budget drawn from money previously spent on fuel bills. Planned upgrades include EV charging points, increasing solar capacity, insulation improvements and the expansion of services, such as new minor injuries and diagnostic units.
Step 4: Measure, verify, repeat: Monitor energy usage and associated costs (and savings). Validate results, publish successes and feed lessons learned into the next stage. The NHP presents a real opportunity to create a better performing more cost-effective and less carbon intensive NHS. Now is not the time for cutting corners; if the right steps are taken, on- going funding can in part be self-generated and therefore less draining on ever stretched public finances.
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