Healthcare: An Overview of Energy Use
and Energy Efficiency Opportunities
Energy Use in Healthcare
Healthcare organizations spend over $6.5 billion on energy each year, and that amount is rising to meet patients' needs.
By being more energy efficient, hospitals around the country can save money, help prevent greenhouse gas emissions, improve the air
quality of their communities, and support their commitment to public health.
Hospitals protecttheir bottom line by being more energy efficient — every $1 a non-profit healthcare organization saves on energy is
equivalent to generating $20 in new revenues for hospitals or $10 for medical offices. For-profit hospitals, medical offices, and nursing
homes can raise their earnings per share a penny by reducing energy costs just 5 percent. By being more energy efficient and saving
money, hospitals can reinvest savings from improved energy performance.
Energy Efficiency Opportunities
Healthcare organizations can find energy savings through multiple efforts.
Low-Cost Measures
> Measure and track energy performance.
> Ensure all equipment is functioning as specified and designed.
> Retrofit inefficient lighting.
> Adjust thermostats for seasonal changes and occupancy.
> Install variable frequency drives (VFDs) and energy-efficient motors.
> Balance air and water systems.
> Educate staff and patients about how their behaviors affect energy use.
> Use ENERGY STAR Target Finder to integrate efficiency goals into the design of
new properties.
Cost-Effective Investments
> Work with an energy service providerto help manage and improve
energy performance.
> Investigate capital investments such as highly efficient HVAC systems.
> Purchase energy-efficent products like ENERGY STAR qualified office, electronic, and
Healthcare Organizations Making a
Difference:
New York Presbyterian Hospital (NYPH)hasset
and implemented rigorous energy savings targets
and projects since 2003, resulting in approximately
S1.77 million in annual savings. Because of its
exceptional and continuous achievements, NYPH
is the first healthcare system to earn the ENERGY
STAR Partner of the Year Award three times.
Providence Health and Services, a Seattle-based
healthcare system serving the Pacific Northwest
and Southern California, leveraged their 2004
ENERGY STAR Partner of the Year Award to further
embed energy management into their
organizational structure by establishing a
corporate Office of Energy Management. Their
energy savings have increased from $700,000 in
2003 to S3.4 million in 2006.
commercial cooking equipment.
How to Talk to Healthcare Organizations About Energy Efficiency
There are several key individuals to contact when seeking to improve the energy efficiency of healthcare
organizations. You will need to gain the support of senior administrators (e.g. the CEO, chief financial officer,
chief operations officer) as well as the facilities manager and/or director of engineering. Working with senior
executives can be the most effective path to follow since top level support for energy management will drive
organization-wide participation.
However, hospitals have many urgent and pressing needs, such as maintaining a safe environment for
patients, budget constraints, inspections, or staff retention issues. Energy management is often a low priority
for executives who have many competing priorities and who may believe energy is just a fixed cost of doing
business.
ENERGY STAR Offers
- Guides and manuals
- Facility benchmarking
- Training
- Institutional purchasing
- Technical support
- Financing resources
- Emissions reporting
- Third-party recognition
- Motivational campaigns
ENERGY STAR® is a government-backed program helping businesses
and individuals protect the environment through superior energy efficiency.
LEARN MORE AT
energystar.gov
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Healthcare: An Overview of Energy Use
and Energy Efficiency Opportunities
How to Talk to Healthcare Organizations About Energy Efficiency (cont.)
Nonetheless, CEOs consistently list financial challenges as their number one concern. Senior executives will most likely respond
favorably when efficiency programs are presented as cost containment or strategic risk reduction initiatives. Showing that energy
management can add value to the bottom line and reduce a hospital's vulnerability to energy price hikes provides CEOs greater
incentive to support energy efficiency initiatives. Improving community public health through pollution prevention is another compelling
reason for healthcare institutions to improve building efficiency.
Engaging representatives from Facilities Management or Engineering is a slightly different matter. When hospital administrators ask
them to lookfor savings, often the two largest categories in their operations budget are utilities and salaries. In many respects, saving
energy helps save jobs in facility operations. The good news is facility managers don't have to procure new technologies to start.
Significant savings can be made by focusing on improving the energy performance of existing equipment. Recalibrating thermostats
and occupancy sensors, adjusting operating schedules, and rebalancing the air and water flows of the HVAC system are just a few
ways to improve occupant comfort and save energy costs in the near term.
ENERGY STAR Resources
Guidelines for Energy Management: Based on the successful practices of ENERGY STAR partners, these guidelines can assist
healthcare organizations in improving their energy and financial performance while designating themselves as environmental leaders.
www.energystar.gov/guidelines
Portfolio Manager — Measure and Track Energy Performance: By measuring, setting goals, and tracking energy use, hospitals can
gain control of energy expenses. Eligible hospital campuses and medical office buildings can rate their energy performance on a scale
of 1 to 100 relative to similar buildings nationwide. To date, EPA's energy performance rating system has been used to measure and
trackthe energy use of more than a third of U.S. hospitals.
www.energystar.gov/benchmark
Perform Cost-Effective Building Upgrades: Plan systematic building upgrades using the 5-stage approach in EPA's Building Upgrade
Manual. This online handbook offers guidance for each stage, from commissioning to plant upgrades.
www.energystar.gov/bldgmanual
Recognition for Achievements
Earn the ENERGY STAR: Buildings that rate in the top 25 percent of energy-efficient
buildings in the nation may qualifyforthe ENERGY STAR label.
www.energystar.gov/eslabel
Become an ENERGY STAR Leader: ENERGY STAR Partners who demonstrate continuous
improvement system-wide, not just in individual hospitals, may qualify for recognition as
ENERGY STAR Leaders. EPA will recognize systems that have achieved reductions of 10,
20,30 percent, or more.
www.energystar.gov/leaders
Visitwww.energystar.gov/healthcare for more information on ENERGY STAR resources and recognition.
Other Resources for Healthcare:
American Society for Healthcare Engineering's
Energy Efficiency Commitment (ASHE E2C)
(www.ashe.org/ashe/facilities/e2c/): This
healthcare engineering association has partnered
with ENERGY STAR to launch an energy efficiency
initiative to share fundamental concepts, proven
strategies, financial tools, local success stories by
ASHE E2C members, and recognition.
Hospitals for a Healthy Environment (H2E)
(www.h2e-online.org/): H2E aims to create a
national movement for environmental sustainability
in healthcare.
ENERGY STAR® is a government-backed program helping businesses
and individuals protect the environment through superior energy efficiency.
LEARN MORE AT
energystar.gov
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