Healthcare Facility Energy Solutions

Commercial Energy for Healthcare Facilities

Healthcare facilities—from community clinics to major hospital systems—depend on electricity and natural gas for heating, sterilization, hot water, and backup power. In deregulated markets, healthcare organizations can significantly reduce energy costs while maintaining the reliability that patient care demands.

Understanding your options helps balance cost savings with the operational requirements of healthcare delivery.

Electricity & Natural Gas: Dual Energy Strategy

Most healthcare operations use both electricity and natural gas to power their facilities. Understanding how to optimize both commodities is essential for comprehensive cost management:

Electricity Usage

• Lighting and HVAC systems
• Electric motors and equipment
• Refrigeration and cooling
• Office equipment and computers
• Backup power systems

Natural Gas Usage

• Process heating and steam generation
• Space heating systems
• Hot water heating
• Cooking equipment
• Emergency generators

By managing both energy commodities strategically through competitive procurement in deregulated markets, businesses can reduce overall energy costs by 15-30%.

How Healthcare Facilities Use Commercial Energy

Commercial energy serves multiple critical functions in healthcare settings:

HVAC and Climate Control

Precise temperature and humidity control is essential:

• Patient room comfort and recovery
• Operating room temperature standards
• Infection control environments
• Laboratory conditions
• Pharmacy storage requirements

Sterilization and Sanitation

High-temperature processes require reliable energy:

• Central sterile processing
• Instrument sterilization
• Laundry sanitization
• Kitchen sanitation

Domestic Hot Water

Healthcare facilities consume substantial hot water:

• Patient care and hygiene
• Kitchen and dietary services
• Laundry operations
• Cleaning and sanitation

Backup Power Generation

Many facilities use electricity and natural gas generators:

• Emergency power systems
• Peak shaving generators
• Combined heat and power (CHP)

Typical Healthcare Gas Usage

Application	% of Total	Criticality
HVAC / Heating	50-65%	High
Hot Water	15-25%	High
Sterilization / Laundry	10-20%	High
Kitchen / Dietary	5-15%	Medium
Backup Power	0-10%	Critical

Cost Reduction Strategies for Healthcare

1. Competitive Supplier Procurement

In deregulated markets, healthcare facilities can choose their gas supplier:

Fixed-Rate Contracts

Budget certainty is crucial for healthcare:

• Lock in rates for 12-36 months
• Protect operating budgets from market volatility
• Align with fiscal year planning
• Support grant and funding applications

Volume-Based Pricing

Healthcare systems can leverage size:

• Aggregate usage across facilities
• Negotiate portfolio discounts
• Coordinate contract timing
• Standardize procurement processes

2. Rate Class Optimization

Ensure you're on the optimal rate schedule:

Firm vs. Interruptible Service

• Firm service: Guaranteed supply, higher rates—essential for patient care areas
• Interruptible service: Lower rates, potential curtailment—consider for non-critical facilities

Large Customer Rates

Major medical centers often qualify for:

• Industrial rate schedules
• Direct connect options
• Custom contracts
• Aggregated billing

3. Equipment and Operational Efficiency

Reduce consumption without compromising care:

HVAC Optimization

• Upgrade to high-efficiency boilers
• Implement building automation systems
• Optimize outside air requirements
• Install heat recovery systems

Combined Heat and Power (CHP)

Many hospitals benefit from CHP systems:

• Generate electricity on-site
• Capture waste heat for HVAC and hot water
• Improve reliability with islanding capability
• Reduce overall energy costs

Energy Management Programs

• Continuous commissioning
• Retro-commissioning projects
• Utility incentive programs
• Energy Star benchmarking

Healthcare-Specific Considerations

Reliability Requirements

Patient care cannot be interrupted:

• Firm service contracts recommended for critical areas
• Dual fuel capability for backup
• Emergency supply arrangements
• Load shedding plans for non-critical systems

Regulatory Compliance

Healthcare facilities face additional requirements:

• Joint Commission standards
• CMS Conditions of Participation
• State health department regulations
• Fire and life safety codes

Campus and System Operations

Healthcare systems with multiple facilities:

• Medical office buildings
• Ambulatory surgery centers
• Senior care facilities
• Administrative offices

Each may have different procurement options and priorities.

Industries We Also Serve

Healthcare organizations often operate related facilities:

• Office Building Commercial Energy Solutions - Administrative buildings
• Hotel Commercial Energy Solutions - Patient family lodging
• Restaurant Commercial Energy Solutions - Hospital cafeterias
• Education Commercial Energy Solutions - Medical schools

Get Your Free Healthcare Energy Analysis

Commercial Energy Advisors understands the unique requirements of healthcare energy procurement. Our services include:

1. Usage Analysis: Review consumption patterns across your facilities
2. Rate Evaluation: Ensure optimal rate classifications
3. Supplier Comparison: Obtain bids from creditworthy suppliers
4. Contract Negotiation: Secure favorable terms with reliability provisions
5. Ongoing Management: Monitor markets and manage renewals

No cost to your organization—suppliers compensate us directly.

Whether you manage a single clinic or a multi-hospital health system, Commercial Energy Advisors can help you reduce energy costs while maintaining the reliability that patient care demands.

Contact us today for your complimentary healthcare energy analysis.