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Royal University Hospital
Healthcare Case Study
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Hospital Upgrades Funded from Utility Savings


The Royal University Hospital (RUH) is a leader in providing acute-care services for the Saskatoon region, serving as the main trauma center for the entire region and housing many maternal and child, neurosurgery and cardiovascular surgery services.

Working with Johnson Controls, the hospital has invested CAD $13.6 million to provide critical facility upgrades that ultimately will save CAD $1.4 million per year, along with providing a healthier environment both inside the hospital and in the larger community.

The 1.6 million-square-foot facility was constructed in 1955, with a 1978 addition. In 2014, RUH entered an energy performance contract (EPC) with Johnson Controls aimed at facility improvements paid for over time by energy, water and operational savings. With the approval of the Ministry of Health, the Region borrowed the funds to pay for the project, and the annual cost savings will be used to make those loan payments. Support from the Government of Saskatchewan was integral to the completion of the project.
Minimizing Impact on Patients and Staff While Maximizing Results


Johnson Controls completed improvements in lighting, water use, building envelope, steam pipes and traps, hot water pumps along with speed drives, and ventilation systems by June 2016, about five months ahead of schedule. Through measurement and verification, the initial savings are almost double the guaranteed amount. In just the first two reporting quarters, the total savings is CAD $899,192, exceeding the savings target guarantee by CAD $433,304 or 48.2 percent. 

Once all the improvements were installed, Johnson Controls worked to optimize and attain even more savings by looking at equipment schedules, fresh air intake, equipment sequencing and other measures – always keeping patients and staff in mind.


Environmental benefits include these annual equivalents:

  • Saving about 29 Olympic size swimming pools of water. 
  • Turning off 10,509 60-watt light bulbs.
  • Reducing energy use of 933 homes.
  • Offsetting carbon emissions from 12,016 barrels of oil.

“We recognize that health care is a huge negative contributor to the environment, and that’s contrary to the ‘first do no harm’ philosophy of medical professionals. We have a duty to mitigate the environmental impact on public health, and we’re doing that by reducing energy and water waste,” according to Nilesh Kavia, vice president of finance and corporate services, Saskatoon Health Region. “Best of all, the project was done at no incremental cost to the taxpayer."

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