The opportunity is clear: hospitals that act now can convert a passive expense into a strategic advantage.  The average hospital spends $1.5M on electricity with rates increasing at 5-7% ($90,000) per year or more!

Over the past decade, U.S. hospitals have collectively paid their utilities millions—often tens of millions—of dollars for electricity alone. On average, hospitals spend approximately $2.00–$3.50 per square foot annually on electricity, translating to roughly $1 million to $2 million per year for a typical 500,000-square-foot facility. Yet this cost center remains largely unmanaged at a strategic level. Electricity prices across investor-owned utilities are rising at approximately 4–7% annually, with some regions experiencing increases approaching 10%. Without a plan, this will be another cost that  erode hospital operating margins over the next five years.

This is no longer a passive budget issue where finance takes last year’s expense and adds 4%, it is a capital strategy imperative. Leading organizations are now developing long-term electricity strategies that include renewable power purchase agreements (PPAs) and a plan to capture utility-funded incentives. These levers can materially reduce cost and advance your decarbonization goals.

Execution remains the barrier. In over 20 hospitals we have supported as a Certified Energy Auditor, we have found facility and finance teams are consistently understaffed and focused on immediate operational demands. Strategic energy management is deprioritized due to lack of capacity.

Notably, in multiple cases where utilities were engaged directly, they proved highly responsive and eager to support—yet had never been contacted.  We can help you take control and build a long-term cash saving plan, immediately.