Healthcare Facility Energy Management Best Practices to Maximize Efficiency and Sustainability

There’s no such thing as downtime for healthcare facilities. Operating 24 hours a day, 7 days a week, contributes to their substantial energy footprint. This demanding schedule makes energy management difficult in healthcare settings.

Healthcare facilities—particularly hospitals—are among the most energy-intensive commercial buildings, consuming an average of 31kWh of electricity per square foot annually. The high electricity consumption translates to hefty operational costs, with the United States healthcare sector spending over $10 billion each year on electricity alone.

Certain energy management strategies can help healthcare facilities reduce their energy use without compromising the quality of patient care. This potential for improvement promises cost-savings and aligns with growing environmental concerns and sustainability initiatives within the healthcare industry.

Adopting best practices in energy procurement and management allows healthcare facilities to reduce their operational costs, improve patient comfort, and contribute to broader sustainability goals.

What are the unique energy management challenges in healthcare?

Healthcare facilities face unique energy management challenges that set them apart from other commercial buildings. The complex nature of their operations, coupled with their critical role in patient care, creates a distinctive energy landscape that requires careful management and innovative solutions.

Hospitals consume 2.5 times more energy per square foot than typical office buildings. U.S. hospitals use an average of 738.5 kWh/m² annually, approximately 2.6 times more than other commercial buildings. So significant is the healthcare sector’s energy consumption that it accounts for nearly 10% of the energy consumed by the commercial sector, despite representing only 5% of commercial floor space.

24/7 operations and specialized equipment requirements

The round-the-clock nature of healthcare operations contributes significantly to their energy demands. Unlike most commercial buildings with defined operating hours, hospitals must maintain full functionality 24 hours a day, 7 days a week.

This continuous operation necessitates constant lighting, heating, cooling, and ventilation. Additionally, healthcare facilities require specialized medical equipment that often has high energy demands. From imaging devices to life-support systems, these technologies are essential for patient care but contribute substantially to overall energy consumption.

Impact on patient comfort and healing

Energy management in healthcare facilities goes beyond mere cost considerations. It directly affects patient comfort and recovery times. Stringent climate control maintains optimal conditions for patient recovery and to prevent infectious diseases from spreading. Hospitals must maintain specific temperature ranges, humidity levels, and air quality standards, all of which require significant energy input.

Balancing these requirements with energy efficiency poses a unique challenge for healthcare facility managers. They must prioritize patient care while considering sustainability and cost-effectiveness.

What are some key energy management strategies for healthcare facilities?

As healthcare facilities consume 2.5 times more energy per square foot than typical office buildings, implementing effective energy management strategies is critical for managing annual budgets. Hospitals can reduce their energy consumption by up to 20% annually without compromising patient outcomes by adopting a comprehensive approach to energy efficiency.

Working with an energy procurement specialist can determine which of the following key energy management strategies will work best for healthcare facilities based on their energy use and other unique factors.

Conduct comprehensive energy audits

Energy audits are essential for identifying inefficiencies and opportunities for improvement in healthcare facilities. These audits typically involve a visual inspection of the facility, a review of utility bills, identification of immediate energy-saving measures, and estimation of potential savings.

More detailed audits can include a comprehensive analysis of energy consumption data across different departments, evaluation of major energy-consuming equipment, and recommendations for energy efficiency improvements. Investment-grade audits provide highly accurate data and financial analysis to support major investment decisions in energy efficiency projects.

Optimize HVAC systems

Maintaining consistent temperatures and high air quality is important for patient recovery and preventing the spread of disease in healthcare facilities. Optimizing HVAC (Heating, Ventilation, and Air Conditioning) systems helps balance the need for adequate ventilation with energy conservation without compromising patient outcomes.

Some strategies to consider:

• Demand-controlled ventilation (DCV) adjusts airflow rates based on occupancy levels and pollutant concentrations. Ventilation is provided only where and when it’s needed, minimizing energy consumption.
• Zone-based HVAC systems divide healthcare facilities into zones for tailored temperature control and airflow to specific areas. They reduce energy waste and maintain optimal comfort levels for patient rooms, operating theaters, and administrative areas.
• Energy-recovery ventilation (ERV) captures and exchanges heat and moisture between outgoing and incoming airstreams to improve energy efficiency and maintain indoor air quality.

Implement efficient lighting solutions

Efficient lighting strategies reduce energy consumption and contribute to a healthier and more comfortable patient and staff environment. One of the most popular healthcare lighting solutions is occupancy-based lighting control systems. They eliminate unnecessary energy expenditure in unoccupied spaces.

Some other options:

• LED lighting consumes less energy and has a longer lifespan, reducing operational costs and maintenance needs. It also provides the consistent illumination needed for patient care.
• Natural light maximization is a design process that maximizes natural light to reduce dependency on artificial lighting, decreasing energy demand.

Invest in on-site renewable energy generation

Renewable energy integration helps healthcare facilities meet sustainability goals, reduce operational costs, and ensure access to a reliable power supply for critical medical operations. Investing in on-site renewable energy generation can reduce dependence on non-renewable energy sources.

Solar energy is a popular choice. Microgrids with solar panels can produce clean energy and store it in batteries for emergency use to guarantee continuous power supply.

Wind turbines can be installed on-site or off-site to generate electricity. This solution particularly benefits facilities in regions with favorable wind conditions to reduce reliance on fossil fuels and lower carbon emissions.

Use energy management systems (EMS) for monitoring and control

Energy management systems can streamline operations, boost staff productivity, and deliver superior patient care experiences while reducing energy costs and improving sustainability. Here’s how they work.

• Real-time monitoring and analytics. EMS provides real-time monitoring and analytics capabilities to help facility managers identify inefficiencies, track energy usage, and make data-driven decisions to optimize energy consumption.
• Automated energy-intensive processes. Automating power-hungry processes and implementing predictive maintenance protocols ensures uninterrupted access to critical services while maintaining optimal environmental conditions for patient care.
• Regulatory compliance and reporting. EMS tracks energy usage, monitors performance metrics, and generates comprehensive reports to help healthcare facilities meet regulatory obligations.

How can energy procurement specialists help healthcare facilities?

Healthcare facilities, with their high energy-use intensity and critical need for reliable energy, benefit significantly from proactive energy procurement strategies. An energy procurement specialist helps facilities anticipate and prepare for energy contract renewals up to 60 months in advance, avoiding the pitfalls of last-minute decisions that can result in higher costs. This proactive approach allows facilities to take advantage of favorable market conditions, such as lower natural gas prices, secure better energy rates, and reduce operational costs.

Energy procurement specialists also bring a diverse pool of suppliers to the table, increasing competition and driving better prices.

Healthcare facilities have unique energy needs due to their 24/7 operations, backup power capabilities, and on-site generation options. An energy procurement specialist understands these complexities and can tailor energy products and programs to meet the specific needs of each facility. For example, they can help manage capacity charges (demand charges) by optimizing energy use during peak demand periods, which can significantly reduce a facility’s energy bills.

Beyond just procurement, energy specialists can provide a holistic approach to energy management. This includes conducting energy audits, identifying areas for improvement, and implementing energy management systems (EMS) that monitor and control energy usage in real-time. These solutions help facilities optimize their energy consumption, reduce waste, and maintain the high standards of patient care and comfort required in healthcare settings.

What are the best practices for energy management in healthcare?

Managing energy costs is a critical component of operational efficiency and financial sustainability. Healthcare facilities—with their round-the-clock operations and stringent requirements for patient care—face unique challenges in balancing energy expenditures with reliable and high-quality patient services.

Following best practices in energy procurement reduces energy spend without compromising the quality of patient care. These strategies optimize energy costs and redirect saved resources toward enhancing patient services and adopting sustainable practices.

Consider these four best practices for energy procurement to maximize savings.

1. Adopt a proactive approach to energy contract renewals
   A proactive approach to energy contract renewals is vital for healthcare facilities to avoid unwelcome surprises and ensure cost stability. This involves setting up contract reminders and engaging in negotiations well in advance of contract expirations. An energy procurement specialist can handle this process, negotiating more favorable terms, revisiting exit clauses, and aligning contracts with changing needs to prevent service interruptions and unexpected price hikes.
   
   
2. Explore demand response and on-site generation
   Exploring demand response programs and on-site generation opportunities can provide healthcare facilities with additional avenues for cost savings and energy reliability. Demand response programs offer incentives for facilities to curtail energy consumption or transfer their load to on-site generation during peak demand periods, helping to stabilize the grid and reduce energy costs. On-site generation, such as using backup generators or renewable energy sources, provides a reliable backup power supply and allows facilities to earn payments through demand response programs, enhancing their financial and operational resilience.
   
   
3. Align procurement strategies with sustainability goals
   Aligning energy procurement strategies with sustainability goals involves procuring energy from renewable or cleaner sources—solar, wind, or geothermal energy—and integrating these sources into the facility’s energy mix. By doing so, hospitals can reduce their carbon footprint, meet sustainability commitments, and redirect saved resources toward patient care and community benefits. This alignment also supports the broader social and environmental goals of the healthcare sector, contributing to a healthier and more sustainable future.

Reduce operational costs with energy management best practices

High energy costs can significantly impact a hospital’s operational budget, often accounting for up to 3% of the total budget and up to 15% of annual profits. Working with an energy procurement specialist to follow energy management best practices helps healthcare facilities reduce these costs. They can then reallocate those savings to improve patient care, invest in medical staff, and update equipment.

This collaborative approach ensures that healthcare facilities can optimize their energy management while maintaining or even improving the quality of patient care.