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GeoInsighter Summer 2004 Newsletter

Forewarned Is Forearmed:
Region 1 Announces Enforcement Focus on New England Hospitals

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On April 13, 2004, the United States Environmental Protection Agency (USEPA), Region 1, announced that it was sending letters to many New England hospitals regarding its intent to increase enforcement activities within the healthcare sector, citing concerns regarding potential violations of environmental regulations. The initiative follows a similar Region 2 initiative announced in December of 2002.

The background of the Regional initiative is instructive and important for New England hospital administrators and environmental management staff to understand in considering actions to be taken in response to April’s announcement. In the mid-1990s, the USEPA undertook compliance and enforcement initiatives for specific enterprise sectors believed by the USEPA to represent particular risk of violations, such as metal finishing industries and, based upon a history of compliance difficulties, colleges and universities. During the college and university compliance and enforcement program, the USEPA recognized substantial barriers to compliance at colleges and universities, including the traditional diffused and independent management structures within institutions of higher learning, the variety of potentially regulated activities at such institutions, and a long-standing lack of focus on environmental compliance as a consequence of operating in an academic, non-industrial sector. Accordingly, the USEPA recognized a need for education and compliance incentives, which, in the first instance, involved allowing institutions to enter into self-auditing agreements with the USEPA in exchange for lower enforcement priority and penalty mitigation. The recognized need for education will, in all likelihood, carry through to the hospital initiative because the perceived barriers to compliance are quite similar. Our understanding of Region 1 intentions is that the initial phase of the initiative will be to raise awareness within the regulated community regarding the extent of the hospitals’ environmental obligations, provide compliance incentives and tools, and allow the regulated community a period of time to “get the house in order” before inspection and enforcement activities are increased.

We believe that the “get the house in order” period is an opportunity to be taken advantage of, and our discussion with members of the regulated community suggests that hospital management agrees and is coming to the recognition that because of the diverse activity within a hospital and the independence of much of the staff (for example, clinical staff from physical plant, where the latter typically has responsibility for environmental compliance), the magnitude of the environmental management burden is not trivial and is perhaps substantially larger than previously believed. To get the house in order, hospital management should be evaluating current environmental compliance performance and, importantly, the extent to which the management systems or structures currently in place are effective in assuring ongoing compliance. The importance of this second evaluation is a result of Region 1’s expressed intent that one outcome of the enforcement initiative will be increased implementation of “environmental management systems,” or management structures specifically designed to manage compliance and environmental performance. With an eye toward future inspections, facilities that have initiated an evaluation of their environmental management systems will be better positioned than those that have not.

Christopher M. Rawnsley
cmrawnsley@geoinc.com

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