How Energy Efficiency Impacts Healthcare Operations

How Energy Efficiency Impacts Healthcare Operations

Navigating the Complexities of Healthcare Energy Efficiency

In the realm of healthcare, where efficiency is paramount and downtime is not an option, the importance of optimizing energy efficiency cannot be overstated. According to the Department of Energy, “Hospitals tend to have a high energy use intensity (EUI) compared to other building types, nearly three times the average commercial building.” Healthcare facilities stand as bastions of constant activity, where patient care never ceases, and any interruption in power can have dire consequences.

Although the primary repercussions typically affect patient welfare, it’s crucial for any healthcare facility to recognize that the vitality of its business operations is paramount for optimal functionality. Both are important considerations when factoring in an energy efficiency upgrade. Thus, energy management stands out as a top challenge in operating healthcare organizations, crucial for supporting the team, the business, and the patients alike.

To secure funding for efficiency and sustainability efforts, it is crucial to present a strong business justification. Like in any other sector, business choices in the healthcare industry are influenced by the organization’s health and growth strategy. For organizations to thrive, they must boost their yearly earnings and provide services with a healthy profit margin. By conserving energy, expenses can be reduced, and ENERGY STAR effectively outlines how energy cost savings can enhance the financial stability of hospitals:

  • 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 (ENERGY STAR).
  • Assuming a 20 percent annual energy savings, implementing a $100,000 energy conservation project (resulting in $20,000 savings) would be the equivalent of generating $400,000 in new revenue per year (Healthcare Facilities Today).

Healthcare energy savings equals revenue

Healthcare Energy Upgrades Equal Smart Business

Energy upgrade projects in healthcare facilities require careful consideration of financial implications and regulatory compliance. Competing priorities and resources only increase the complexity of decisions. There are two primary approaches for financing such endeavors: capital investment and as-a-service solutions.

The capital investment route involves an initial expenditure from the facility’s capital expenditure (Capex) budget. After conducting a thorough audit and defining the scope of work, technology solutions are implemented to drive energy savings. Through meticulous commissioning and ongoing measurement and verification, the result is tangible reductions in energy costs, directly impacting the bottom line of hospitals. This method requires upfront payment from the facility’s budget but provides a clear path to long-term savings.

Alternatively, the Energy-as-a-Service model presents an attractive option for healthcare facilities with limited capital resources. Under this arrangement, all aspects of the project are handled without any upfront capital cost to the facility. Instead, hospitals make regular payments over time, often structured as operating expenses (Opex). This approach allows facilities to allocate their capital towards core business needs while still benefiting from energy efficiency upgrades.

When it comes to navigating the complexities of healthcare energy efficiencies, find a partner that is well-versed in addressing the unique challenges faced by hospitals. From aging infrastructure to stringent regulatory requirements, it is important to adopt tailored solutions that meet the specific needs of each facility. By modernizing outdated systems and ensuring compliance with regulations, those managing a healthcare facility not only enhance operational efficiency but also improve safety standards for patients and staff.


Healthcare facilities rank among the most energy-intensive environments globally, but the financial margins in the healthcare sector can be slim due to the complexities of insurance and operational dynamics. Consequently, securing ample capital for energy initiatives isn’t always straightforward. While some facilities may have substantial resources, many face constraints in funding. Moreover, the intricate nature of implementation, compounded by the necessity to maintain patient care standards, adds more complication. However, with a well-defined process, these challenges can be navigated effectively, ensuring successful energy efficiency initiatives despite the built-challenges inherent in healthcare environments.


Jim Dore, VP of Service Solutions    Chateau Energy Solutions

Maximizing Efficiency without Compromising Quality

Healthcare organizations that partner with energy consultants to delve into the intricate dynamics of tackling a multi-tiered energy audit and subsequent upgrade within healthcare infrastructure are finding ways to transform the impact of energy usage.

As it pertains to maximizing efficiency, specifically in a hospital or health facility, the same question often emerges: Does the inefficiency of one building impact the entire organization? As a Chief Operating Officer or board member, it’s a fair ask. Does one need to overhaul the entire organization or can it be done over time. It’s important to understand the complexity of the ask, and the need to categorize and prioritize facilities and implement comprehensive upgrades rather than isolated improvements.

Look for a partner that has finetuned their process and can highlight the transformative impact of energy efficiency initiatives – whether it is a multi-tiered long-term process or the overhaul of an entire health system. In this example, Encompass Healthcare was able to show ROI, based on improved reliability, reduced power consumption, and enhanced patient satisfaction.

Why Choose Chateau Energy Solutions

The Impact of Reliable Energy Systems on Healthcare Operations

Power outages and unreliable energy systems pose significant challenges to healthcare facilities, affecting critical operations and patient care. Chateau Energy emphasizes the importance of robust backup generation systems, where modernized generators and battery backups ensure uninterrupted power supply during surgeries and data management processes. By leveraging cutting-edge technology and expertise, Chateau Energy empowers healthcare providers to mitigate risks and safeguard patient well-being. As experts within the healthcare industry and having serviced, multi-million dollar, multi-state energy upgrades, we are confident in stating why we lead the field in energy efficiency solutions.

1.      A History of Building Trust through Past Success and Expertise

Building trust with clients in the healthcare sector requires a track record of success and a deep understanding of their unique challenges. Chateau Energy leverages past achievements and industry expertise to demonstrate the tangible benefits of energy efficiency initiatives. By showcasing real-world case studies and testimonials, we convey confidence to our clients in our ability to deliver results while minimizing disruption to critical operations. “…Chateau Energy’s expertise in energy efficiency and sustainability will provide Encompass Health a variety of benefits such as increased energy savings, improved maintenance savings, reduced GHG, enhanced aesthetics, and most importantly, elevated patient, visitor, and staff comfort in our facilities across the country,” stated Josh Rhodes, Encompass Health, Director of Design and Construction.

2.      Investment Strategies for Sustainable Growth

The path to energy efficiency in healthcare often involves significant capital investment. Chateau Energy offers flexible financing options, including capital investments and as-a-service models, to align with clients’ budgetary constraints. By integrating energy upgrades with capital projects, healthcare providers can optimize their financial resources and achieve long-term sustainability goals.

3.      Experts in Navigating Complex Regulatory Requirements

Healthcare facilities operate within a highly regulated environment, necessitating compliance with stringent safety and regulatory standards. Chateau Energy has a long history of working with regulatory restrictions. We recognize the intricacies of these requirements and work very closely with clients, boards of directors, and in-hospital teams, to navigate the obstacles seamlessly. By implementing energy-efficient solutions that align with regulatory guidelines, healthcare providers can enhance operational efficiency while maintaining compliance with industry standards. Having successfully collaborated with boards on multimillion-dollar projects, including those backed by major investors, we bring unparalleled expertise to the table.

Josh Rhodes quote on Chateau Energy

Leveraging our extensive experience collaborating with expansive multi-state healthcare entities, Chateau Energy has established itself as a trailblazer in innovation, providing customized energy efficiency solutions tailored to meet the distinct requirements of healthcare providers. Our track record speaks volumes about our ability to navigate the complexities of large-scale projects and deliver tangible results.

Chateau Energy Solutions offers comprehensive energy efficiency solutions tailored to the unique needs of healthcare facilities. At the audit phase, our inspection allows us to create a financial and multi-year plan, to save money, optimize energy usage, navigate regulatory requirements, and secure approval from governing boards. Building trust with our clients is our strength and has become the core of our mission. In each case, we are committed to helping hospital boards and their officers achieve their sustainability as well as their financial goals.

Our latest case study showcases how an operationally challenging healthcare location reaped the rewards of their investment, boasting improved reliability, reduced power consumption, and enhanced patient and employee satisfaction.

Additionally, Chateau Energy created a robust national LED lighting program for 75 Encompass Health facilities. This program not only led to substantial energy and maintenance savings but also enhanced patient and staff comfort.

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Energy Solutions: The Future of a Thriving Healthcare Infrastructure

As healthcare continues to evolve, the importance of energy efficiency and resiliency cannot be overstated. Chateau Energy stands at the forefront of this transformative journey, offering innovative solutions to address the complex challenges faced by healthcare providers. Through strategic partnerships, technological innovation, and unwavering commitment to excellence, we continue to pave the way for a brighter, more sustainable future in healthcare infrastructure. If you are interested in a consultation to investigate how we can manage a complex energy efficiency upgrade for your facility or multi-hospital systems, contact us today.

Chateau Energy Solutions Making Energy an Asset®

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