Inside HFM

Focus on the bottom line

ASHE President Michael Hatton offers an alternative perspective on the benefits of reducing health care's utility footprint.
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Reflecting on the American Society for Health Care Engineering’s (ASHE’s) motto of “Optimizing health care facilities,” it’s impossible to ignore the inefficiency of health care’s utility footprint and its resultant impact on our bottom line. According to the 2018 Commercial Buildings Energy Consumption Survey, energy consumption across the health care sector was $10.8 billion annually.

As I consider this metric in terms of utility data from my own system, Memorial Hermann Health System in Houston, it’s apparent that this is a relevant (if underemphasized) topic in our field, given the impact of inflation on recent utility rates.

Current energy codes have implemented more stringent performance-based standards for efficiency. That said, health care has a huge opportunity (and an immediate need) to reduce operating expenses, with renewed focus on the basics of energy management.

The ASHE/Health Facilities Management 2025 Hospital Construction Survey reports that a disheartening 22% of survey respondents do not see value in commissioning, indicating a missed opportunity for energy efficiency in new and renovated health care spaces.

Reviewing outcomes from my own quest to improve energy efficiency, I am convinced health care could achieve 10% to 20% reductions in utility consumption with a simple focus on benchmarking consumption, commissioning every project, following design guides and other applicable strategies outlined in ASHRAE Standard 90.1, Energy Standard for Sites and Buildings Except Low-Rise Residential Buildings, and focusing on low- or no-cost tasks such as time-of-day schedules and seasonal setbacks for climate control systems. Additionally, we must emphasize the human element: goal setting, reward/recognition and ensuring outcomes related to utilities are highlighted at every team meeting.

Improving health care’s energy footprint has the potential to reduce annual operating expenses in the range of $1 billion across the sector. While we’re far from where we want to be, Memorial Hermann’s focus has improved our ENERGY STAR® portfolio rankings by 45%, accruing utility cost savings greater than $190 million to the bottom line.

We can do it — let’s get back to the basics on energy savings!