Hospitals and health systems are increasingly focused on cutting costs, and with some large health systems spending tens of millions of dollars on energy costs annually, utility bills are one area many organizations are looking to achieve cost savings, according to a Crain's Detroit Business report.
Some hospitals, such as Evanston, Ill.-based NorthShore University HealthSystem, are attempting to reduce the amount of energy their facilities use. NorthShore is improving its operating rooms to ensure they require less energy.
Although NorthShore and other organizations are making large-scale overhauls to their systems, any healthcare organization can achieve cost savings by simply turning off unneeded lights, as lighting accounts for roughly 43 percent of hospital electricity usage, according to the report.
Another way hospitals can achieve utility savings is by enlisting the help of a company that reviews their current utility bills and identifies areas they can achieve cost savings. For instance, SIB Development & Consulting — a consulting firm focused on reducing fixed costs for businesses — has helped 98 percent of its customers, including hospitals and health systems, identify areas of savings.
More articles on healthcare finance:
For-profit hospital stock report: Week of Aug. 18-22Banner Health revenue up, surplus down in first half of FY 2014
Texas Health Resources surplus down 16% in first half of FY 2014