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Managing Hospital Energy Costs

Updated: Aug 14, 2019

By increasing energy efficiency, hospitals can improve the bottom line and free up funds to invest in new technologies and improve patient care.



According to the U.S. energy Information Administration, an average U.S. hospital uses 27.5 kWh of electricity and 109.8 cubic feet of natural gas per square foot annually.


“A typical 200,000 sqft, 50-bed hospital in the U.S. annually spends $680,000 - or roughly $13,611 per bed - on electricity and natural gas.”

Using average commercial energy prices of $0.10 per kWh and $8.59 per hundred cubic feet, the average cost of power per square foot for hospitals in North America is approximately $2.84 for electricity and $0.94 for natural gas.


By increasing energy efficiency, hospitals can improve the bottom line and free up funds to invest in new technologies and improve patient care.


Harmonics in Healthcare


Harmonics are by-products of modern electronics. To function, new power electronic devices produce more energy consumption than older technology. Over the last 25 years Harmonics, have become common not only in industrial but also in commercial, residential, and public sector applications. Specifically, Harmonics are generated mainly due to the widespread use of new power conversion technologies.


The typical savings we see from clients in the Healthcare vertical (Acute Care Hospitals, Rural Access Hospitals and LTPAC) range between 15% and 24%

The savings are due to the high use of technology such as Monitoring equipment, Scanning equipment along with the normal contributing factors such as cooling.


The reduction of harmonics within these facilities not only reduces overall electrical consumption but it also helps to extend the lifespan of the equipment leading to a reduction in overall CAPEX spend for new equipment

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