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Green initiatives deliver ROI for payers

By Patty Enrado

Payers are incorporating green initiatives into everything from facilities to office equipment.

It’s the right thing to do, but now advocates can also point to ROI.

Blue Cross Blue Shield of Rhode Island moved into its new LEED-certified headquarters in Providence in October. Tom Bovis, assistant vice president of corporate real estate and administrative services, got the board to buy into the project despite reservations and the 1 percent construction surcharge – $1 million for the $90 million construction project – because the upfront cost paid for itself.

BCBSRI will receive a one-time rebate of $400,000 for energy efficiency, and an independent study revealed annual savings in utility use of $160,000.

The new headquarters boasts other efficiencies as well, Bovis said, including harvesting rainwater to use in its cooling towers, which eliminates the purchase of 350,000 gallons of water a year.

Building codes are changing, and being LEED (Leadership in Energy and Environmental Design)-certified will likely be the norm in the next 10 years, Bovis said.

“It’s great for the environment and our employees,” Bovis said. While harder to quantify, studies have documented productivity improvements and absenteeism reduction among employees, he said.

Blue Cross Blue Shield of Tennessee opened its new headquarters campus outside of Chattanooga this year. BCBST expects to get LEED certification in the first quarter of 2010.

“Part of our corporate mission is sustainability,” said Dan Jacobson, vice president of properties.

In addition to environmental and employee health benefits, BCBST will see a reduction in building maintenance costs. More than 20 million gallons of water will be saved annually through energy-efficient equipment. The building’s raised floor system will lower building lifecycle energy costs from 30 percent to 60 percent, and the building design will reduce energy costs by 20 percent, or $265,000 annually, said spokeswoman Mary Thompson.

Cigna has mandated that all new construction projects be LEED-certified. It has green initiatives in numerous areas, including real estate, printing and distribution, IT, office supplies and equipment, food services and fleet.
“Cigna’s mission is to help the people we serve improve their health, well-being and sense of security. One important component of this mission is the protection of the environment,” said spokesman Joe Mondy. A voluntary group of employees formed Green STEPS (Sustainability Team for Environmental Protection & Stewardship) and has been planning, tracking, implementing and reporting on Cigna’s green initiatives since 2008.