Post by Walt Vernon

Through the years, I have often been challenged to justify what I do by somehow defining its ROI. About 15 years ago, Eric Berzon and I designed Kaiser Permanente's first 5 MW of fuel cell installations. The vendor had never done a California hospital. The learning curve was painful. I'm pretty sure Mazzetti lost money. Then fracking hit. Gas prices collapsed. Our economic model fell apart. People called the project a failure. Eric said something I never forgot: people who think this is a failure don't understand. This is a long-term hedge. You can't measure ROI on a year or two of results. But where was the ROI for anybody? Based on those "failed" projects, I changed NFPA 99, NFPA 70, and NFPA 110 to accept fuel cells as alternatives to diesel generators. No compensation. Where was the ROI? We won Kaiser's Small Hospital Big Idea competition using fuel cells as the primary power source. We spent far more than the stipend. Where was the ROI? We helped demonstrate long-duration energy storage at Kaiser Ontario. That led to changing the codes again — permitting microgrids in lieu of diesel — and helping CMS issue a Categorical Waiver so hospitals wouldn't lose reimbursement. Most of that work, unpaid. Where was the ROI? Today, Valley Children's Hospital is building a microgrid that will cut energy costs, reduce emissions 50%, improve electrical reliability, and improve air quality in the county with the worst air in America. It will help them care for their kids. Now there's an ROI. The problem with innovation is that it does not happen at one moment, with one investment, and a determinate return. Maybe the return is more than dollars. Maybe it happens over time. Each step is uncertain. True innovation demands courage and a commitment to something beyond ROI. Maybe it's BOI. Benefit on Investment. This is Part 3 of a series on innovation. Link in the comments. #Innovation #HealthcareInfrastructure #BOI #EnergyResilience