BOSTON – Boston Medical Center Health System (BMCHS), an integrated health system that combines clinical and operational excellence with health equity and access, has partnered with Omicelo, a sustainability-focused investment group, to form Oakwell, a comprehensive solution for health system sustainability and real estate optimization. The new company partners with hospitals and health systems to develop custom energy efficiency and consumption reduction programs that reduce spend, improve balance sheets, and free up capital that can be reinvested in patient care.
Healthcare organizations are spending more than $60 billion annually on construction costs to meet patient demands, preserve fiscal wellbeing, increase real estate portfolio sustainability, and mitigate environmental hazards while considering changing regulations. Oakwell offers health systems custom sustainability and real estate strategies that reduce energy consumption and yield value and significant cost savings, freeing up capital that can be reinvested in clinical care and health system operations. Oakwell’s offerings can help mitigate challenges currently facing health systems, including patient access and capacity constraints. By 2035, Oakwell aims to create pathways for one million more people to gain access to quality care with the savings that the company will have produced for clients.
Oakwell will leverage proven methods to empower health systems to conceptualize, implement, and meet climate and fiscal goals by leveraging BMCHS’ extensive experience and Omicelo’s data-driven approach to financial sustainability. To date, BMCHS’ sustainability-focused efforts have resulted in over $500 million in reduced costs and averted capital spending. Oakwell can support health systems in replicating this model.
BMCHS is a nationally recognized leader in sustainability and environmental excellence as recognized by the Practice Greenhealth Top 25 Environmental Excellence Award. In 2023, BMCHS piloted Clean Power Prescription, a first-in-the-nation program that leverages the Low-Income Communities Bonus Credit of the federal Inflation Reduction Act to enable BMC providers to write patients a prescription for a reduced utility bill, supporting economic and environmental health and bringing low-income households the benefits of renewable solar power. Additionally, BMCHS was the first non-profit healthcare organization in the nation to issue sustainability bonds with a $232 million bond sale that financed extensive renovations to better support patient care.
“At BMCHS, we recognize that sustainability is healthcare. Environmental initiatives are not only a critical extension of our mission to improve the health of our communities, but they are an innovative approach to health system sustainability,” said Alastair Bell, president and CEO of BMCHS. “Our robust environmental programming has generated cost savings which we have reinvested into expert patient care, cutting-edge research, and our communities. Oakwell provides us with the opportunity to share key learnings and collectively work towards a more sustainable nation.”
Omicelo is a private investment group leveraging its capital and experience to scale a diverse portfolio of companies that are actively driving sustainability forward. Sustainability, as Omicelo defines it, is the ability to safeguard and increase access to high quality healthcare, viable housing, economic mobility opportunities, and a thriving environment.
Oakwell’s founding board members include seasoned executives from Omicelo and BMCHS: Bob Biggio, senior vice president and chief sustainability and real estate officer of BMCHS; Joshua Pollard, managing partner and chief executive officer of Omicelo; and Kathy Feeney, managing partner and chief operating officer of Omicelo.
“Solving environmental challenges in healthcare requires transformative thinking. Health systems need experts across engineering, finance, real estate, sustainability, technology and healthcare to meet our industry’s critical climate goals,” said Biggio. “Oakwell offers hospitals and health systems a roadmap, proven approaches, fiscal guidance, and long-term partnership.”
“Omicelo is committed to creating partnerships and investing in innovative companies that create financial success and produce environmental sustainability. Through Oakwell, we will be able to scale that commitment and offer hospitals and health systems increased access to sustainable solutions that can ultimately improve their balance sheets and their ability to keep us all healthy,” said Pollard.
Oakwell offers real estate optimization services and holistic sustainability management services across six key areas, including: energy, climate resilience, water, waste, food, and sustainable procurement. Oakwell will support health systems by providing financing to organizations that desire to accelerate their costs savings and sustainability opportunities.
About Boston Medical Center Health System
Boston Medical Center Health System provides world-class care to all, with an emphasis on health equity, clinical and research excellence, and the treatment of complex conditions through a value based, coordinated continuum of care.
BMC Health System includes Boston Medical Center, with one million patient visits annually; WellSense Health Plan, a Medicaid managed care organization with 740,000 members in Massachusetts and New Hampshire; Boston University Medical Group, with 800 physicians, non-physician clinicians, educators and researchers across 18 clinical departments at BMC; Boston HealthNet, a network of 12 affiliated community health centers; Boston Accountable Care Organization; Clearway Health, a pharmacy solutions company that helps third-party health systems build and expand specialty pharmacies; Brockton Behavioral Health Center, a dedicated 106-bed behavioral health center in Brockton, MA, serving patients with complex mental health and substance use disorder conditions; and a partnership with Oakwell, a sustainability management and real estate optimization firm that supports health systems in advancing energy efficiency and consumption reduction goals.
About Omicelo
Omicelo is a private investment group leveraging its capital and its experience to scale a diverse portfolio of companies that directly increase the “SustainAbility” of humanity. “SustainAbility,” as Omicelo defines is the ability to safeguard and increase access to high quality healthcare, viable housing, economic mobility opportunities, and a thriving environment.