How energy upgrades are helping one New Jersey hospital cut costs, improve comfort and refocus on patient care.
“Every dollar we’re not spending on energy is a dollar we can put back into patient care,” said Scott Reilly, director of maintenance and engineering at St. Joseph’s Health, which operates hospitals in Paterson and Wayne, New Jersey.
A top-rated health system, St. Joseph’s includes a tertiary care medical center and Children’s Hospital in Paterson, as well as an acute medical center in Wayne, and is recognized nationally for its innovative programs and cutting-edge services. Dating back to 2009, St. Joseph’s has partnered with PSE&G on energy efficiency upgrades, past projects across both campuses focused on lighting, heating, cooling, and pumping improvements, helping modernize aging systems and improving operational efficiency.
Like many health systems, St. Joseph’s faces the challenge of keeping older buildings running efficiently while managing tight budgets and providing high-quality care. To help address these challenges, the hospital enrolled in our Engineered Solutions Program, part of our business solutions portfolio.
The hospital is currently executing an $8.6 million energy project, supported in part by our direct incentives, which will cover nearly 48% of the total cost. The remaining balance will be financed through a five-year, zero-interest, on-bill repayment option. With the audit and design services now complete, delivered by our partners at H2M architects + engineers, a multi-disciplined consulting and design firm, the projects are set to enter the construction phase, expected to begin in late 2025. This phase will focus on replacing aging equipment, improving reliability, reducing maintenance needs, and creating more comfortable spaces for patients and staff. When the work wraps up between 2027 and 2028, both campuses will benefit from lower energy costs, fewer operational disruptions, and more resources available for patient care.
Comprehensive infrastructure improvements
“This isn’t just about replacing lights or motors,” said Scott. “It’s about making the hospital safer, more reliable, and more resilient.”
The project covers a broad range of upgrades to both campuses. At Paterson, lighting, chillers, and air handling units are being replaced with more efficient models, while pumps and steam traps are being modernized, and new heat recovery systems will capture and reuse waste energy. Wayne will see similar improvements. These upgrades are expected to save over 78,000 megawatt-hours of electricity and 240,000 therms1 of natural gas across the life of the equipment – significantly reducing both costs and emissions.
Fixing long-standing issues and enhancing safety and comfort
Some of Paterson’s buildings date back to the 1880s, and over time the campus has relied on temporary measures, such as renting cooling equipment in the summer, an inconvenience for staff and patients.
“That’s inefficient, costly and inconvenient,” said Scott. “Our patients depend on us to provide a comfortable environment, and these improvements will put an end to stop-gap fixes, reduce peak energy demand, and create infrastructure the hospital can count on.”
The benefits reach beyond the hospital, helping the broader Paterson community by easing strain on the local grid during extreme weather and enabling both campuses to continue delivering safe, high-quality care.
Reinvesting in care and benefiting the community
One of the biggest benefits of this project is how future energy savings can be reinvested. Over the life of the upgraded systems, the hospital is projected to save approximately $688,000 annually on energy costs, funds that can now support urgent needs, like updating medication pumps and enhancing cybersecurity protections.
“With this investment, we’ll be able to replace outdated clinical tools that could be vulnerable to ransomware,” said Scott. “That will have a direct impact on patient safety.”
As a mission-driven Catholic hospital, St. Joseph’s also provides support to underserved communities, and these savings will help sustain and expand the reach of outreach and wellness programs.
We’re proud to provide solutions that let hospitals focus on care, not infrastructure, while reducing energy use, improving reliability, and helping St. Joseph’s deliver a safer, more comfortable experience for patients and staff.”
– Rachael Fredericks, director of Energy Services at PSE&G.
“We’re proud to provide solutions that let hospitals focus on care, not infrastructure, while reducing energy use, improving reliability, and helping St. Joseph’s deliver a safer, more comfortable experience for patients and staff,” said Rachael Fredericks, director of Energy Services at PSE&G.
Looking to the future
St. Joseph’s leadership is already thinking about what’s next. They’re considering solar power, geothermal systems, heat pumps and thermal storage and they’re counting on us to be part of these renovations.
“If a clean energy solution helps us serve our patients better, we want to explore it,” said Scott.
This project is about more than equipment. It’s about transforming a hospital into an institution that operates more reliably and sustainably, supporting both patient care and daily operations. And it’s a clear example of how energy upgrades can drive better care, stronger operations, and meaningful community impact.
To learn more about how your organization or business can benefit from our suite of energy efficiency programs, visit bizenergy.pseg.com.
1 A therm is a unit of heat energy. One therm is equal to 100,000 British Thermal Units (BTUs), which is roughly the amount of energy needed to heat a home for a day in cool weather.
