Margaret Mary Health’s Outpatient & Cancer Center Achieves Clean Energy Milestone with Completion of High-Performance Geothermal System and $413,000 in Federal Tax Credits
Batesville, IN – May 29, 2025 –Margaret Mary Health (MMH) has successfully completed the installation of a high-performance geothermal system at its Outpatient & Cancer Center that will cut natural gas energy costs by 80 percent, provide more reliable power to the community and significantly reduce carbon emissions. Federal clean energy tax credits totaling $413,046 proved critical for the planning and completion of this project. The Outpatient & Cancer Center also expects to save an additional $220,000 of the total cost through utility savings, a key component of the project’s financial strategy that has resulted in a remarkable five-year return on investment.
On Wednesday, May 28, MMH hosted a distinguished group of public officials, including Congresswoman Erin Houchin, State Senator Jean Leising and State Representative Lindsay Patterson, who toured the Outpatient & Cancer Center and the adjacent replacement hospital project currently under construction. Their visit underscored the importance of energy efficiency in healthcare and provided an opportunity to showcase how clean energy tax credits are being strategically leveraged to advance local healthcare and infrastructure goals.
“In healthcare, demand for energy is rising, and so are costs. By generating energy from the ground, we’re able to meet our electricity needs and provide better, more affordable care to the community we serve,” said Brian Daeger, Chief Operating Officer at Margaret Mary Health. “CMTA’s expertise in high-performance healthcare design and their understanding of clean energy tax credits have unveiled operational and financial opportunities that are revolutionizing our facilities.”
Completed in 2023, the geothermal system at the Margaret Mary Outpatient & Cancer Center is now fully operational. The project involves the removal of a 210-ton air-cooled chiller and installation of 68 geothermal wells at 300-feet deep. The installation of (3) 60-ton 6-pipe Water Furnace Tru Climate Modules not only reduces the usage of boilers for below freezing conditions but also efficiently heats the facility using the heat pump modules even when outside air temperatures drop as low as 25 degrees. The adoption of the geothermal technology provides a more sustainable energy solution, insulation from energy price volatility and an opportunity for cost savings.
“Before this renewable energy system was completed, we would occasionally lose power during extreme weather events,” said Dave Neff, Director of Facilities at Margaret Mary Health. “We treat cancer patients here, and they need their chemotherapy on a consistent schedule. This meant that our patients would have to brave uncomfortable conditions to ensure they got their medicine. Now, our patients will always receive the best possible care and the most comfortable of conditions.”
Looking toward the future, Margaret Mary Health is collaborating with CMTA, a Legence company, to move forward on plans for a new replacement hospital. Targeted to open in 2026, the new facility will also feature geothermal energy – demonstrating the model’s success. Margaret Mary Health plans to similarly apply for the usage of clean energy tax credits for this facility to support the construction of the replacement hospital.
Scheduled to open for patient care in 2026, the fully electrified replacement hospital will offer a wide range of services for the region, including Emergency Services, Surgical Services, an Imaging Center, Inpatient Care, Maternity Services, Cardiac Rehab, a Sleep Clinic, Public Café and Chapel. Located just north of the I-74 Batesville interchange on State Route 229, the 125,000-square-foot facility is set to enhance the patient experience, attract new providers and serve as the cornerstone of an expanded health and wellness campus.
In addition to providing top-quality care, the hospital will serve as the anchor for a larger wellness campus featuring walking trails and green spaces to further support the wellness of patients and the community alike. The estimated cost for phase one of this expansion is $115 million with anticipated tax credits of approximately $2 million, marking a major investment in the health and well-being of the surrounding community.
###
About Margaret Mary Health
Located in Batesville, Indiana, Margaret Mary Health is a not-for-profit, critical access hospital providing both inpatient and outpatient services. Employing nearly 800 team members, the hospital has experienced significant growth through the years, adding oncology and rehab centers, as well as expanding access to primary and minor care in nearby communities. MMH serves a population of more than 65,000 residents in Ripley, Franklin and surrounding counties. https://www.mmhealth.org/
About CMTA
CMTA, a Legence company, headquartered in Louisville, KY is a multi-service practice founded in 1968 with 50 offices and 1,200 employees nationally. Focused on mechanical, electrical and plumbing (MEP) and technology engineering, performance contracting and zero energy/zero carbon solutions, CMTA delivers decarbonization and occupant health and wellness through energy efficient, sustainable projects. It is a national leader for geo-exchange and geothermal solutions across a variety of markets, including healthcare, K-12, higher education, federal and local government and commercial real estate. www.cmta.com
Group Photo Cutline: Pictured from left: Paul Selking, WaterFurnace; Doug Fick, CMTA; Lindsay Patterson, State Representative; Liz Leising, MMH; Jean Leising, State Senator; Erin Houchin, Congresswoman; Doug Hundley, CMTA; Dave Neff, MMH and Molly Lauck, CMTA