Managing Utility Costs in a Health Care Facility

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Managing Utility Costs in a Health Care Facility

With recent changes in health care funding, every organization is looking for ways to slash operating costs and manage energy usage, especially in today’s competitive market. Pinpointing methods to control energy costs has been a priority for facility managers for years, and energy management has been a concern since the energy crisis of the late 1970’s (Cotton,1999). In fact, hospitals spend an average of 14.9 euros on electricity and 4.3 euros on natural gas per square meter (m2) (Managing Energy Costs, 2004).

The good new is utility costs can be managed and controlled by performing the following six cost saving steps, including careful bill auditing, implementation of energy management systems, surveillance of equipment maintenance, improvements in lighting efficiency, increased employee awareness, and the introduction of electrical deregulations. In turn, facility managers will be able to cut utility costs and gain a financial advantage for their hospitals.

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