Over the last decade, healthcare facilities around the world have faced increasing financial challenges as margins and profitability have decreased. Both private and public healthcare system administrators are challenged with similar budgetary constraints: The recent and ongoing increases in energy costs have led to losses for many for-profit hospitals and has squeezed margins in others.

And by the year 2050, the world population aged over 60 years will nearly triple from 700 million to 2 billion.

♦  Energy use in the healthcare market has increased 36 percent since 1995, due to changes in technology and data center requirements, as well as an increase in patient volume.

♦  Energy costs typically represent only 2–5 percent of a healthcare facility’s total operating budget, management remains focused on traditional cost-cutting measures – and hence why energy spend continues to be a financial drain on their profits.

♦  A 30% savings in energy costs has the potential to improve profitability by up to 1 percent. That can translate to a savings of nearly $1 million in 30 patient days for a typical 235-bed facility with a 60 percent maintained bed occupancy.