The healthcare industry faces a daunting challenge and an unprecedented opportunity: balancing its critical mission of delivering the best patient care with thin margins and an expanding environmental footprint. Traditional healthcare facilities are notorious for their high energy and water consumption, significant waste generation, equipment and supply needs, and production of greenhouse gas emissions. Hospitals rank behind only food service and food sales facilities as the most energy-intensive commercial operations in the country.
However, a major paradigm shift is underway. Healthcare sustainability is no longer a “feel-good” initiative; it’s a strategic imperative and smart financial investment for forward-thinking health systems.
Benefits of Sustainability in Healthcare
Although the scientific data behind how decarbonization and sustainable practices are essential to protect health and planetary systems is becoming more irrefutable, the practical and economic benefits are driving operational changes among health system executives. Many people are unaware of the practical, tangible benefits of sustainability in healthcare that leading peers are realizing, which include:
Significant Cost Savings
Optimizing energy and water usage, building operations, waste management and reduction, and sustainable procurement practices translates to substantial financial savings. Upgrading to energy-efficient technologies, reducing water consumption, and implementing waste reduction programs can provide immediate cost savings and compound into significant reductions in operational costs over time. Boston Medical Center Health System — an organization pioneering best practices in healthcare sustainability management — is projecting to save more than $500 million by 2030, with $150 million of that attributed to energy related savings, through employing industry-leading practices and strategic interventions.
Boston Medical Center’s Energy Costs and Square Footage, 2011–2030
Source: Martha Hostetter and Sarah Klein, Greening the Health Care Safety Net: How Boston Medical Center Reduced Its Carbon Footprint Without Compromising Patient Care (Commonwealth Fund, Aug. 2023). https://doi.org/10.26099/0na0-8v90
Environmental Stewardship
The U.S. healthcare sector accounts for roughly 8.5% of the nation’s greenhouse gas emissions. By embracing sustainability practices that complement hospital operations, healthcare systems can minimize their carbon footprint, conserve natural resources, create more resilient supply chains, reduce staff and patient exposure to hazardous chemicals, and create more equitable access to health services across communities. This aligns well with growing public concern about climate change and its impacts on human health, positioning them as responsible corporate citizens.
Increased Asset Value
Sustainable building design and construction using energy-efficient systems, smart building controls, materials with lower embedded carbon, and features with lower environmental impact are increasingly attractive to patients, staff, and investors. This leads to improved property values and potentially increased revenue streams through building certifications (such as LEED or WELL) or attracting sustainability-focused partners. They also create ideal conditions for state-of-the-art healing environments.
Freeing Up Funds for Enhanced Patient Care
The cost savings achieved through healthcare sustainability management initiatives can be reinvested in areas that directly improve patient care and support health systems’ missions. This could include acquiring advanced medical equipment, expanding patient services, or recruiting, retaining, and training staff.
By focusing on less resource-intensive operational practices and energy consumption, healthcare systems can create a virtuous cycle: They can save money, improve the environment, protect human health, and improve their margins to invest in patient care delivery.
Strategies for Complete Healthcare Sustainability Management
Transforming a healthcare system into a sustainability leader requires a multi-pronged, strategic, long-term approach involving the following key steps:
Reducing Energy Usage
Lower energy consumption is the starting point for healthcare sustainability management. Hospitals may conduct a comprehensive energy audit to identify areas of high energy consumption by analyzing lighting systems, HVAC equipment, and capital equipment for opportunities to upgrade to more energy-efficient models and leveraging technology, like installing occupancy sensors in rooms to automatically adjust lighting, air exchanges, and temperature based on usage.
Audits and Engineering Evaluations
Another step is to engage qualified engineers and sustainability experts to perform detailed building audits. These professionals can analyze energy consumption patterns and recommend specific steps to optimize a building’s envelope, identify opportunities for natural lighting or ventilation, and assess the viability of integrating renewable energy sources into system portfolios.
Retro-Commissioning
This process involves reassessing and recalibrating existing building systems to ensure they operate at peak efficiency — in other words, a system tune-up. Retro-commissioning can significantly reduce energy consumption and improve system performance without requiring major infrastructure upgrades.
Identifying Electrification Opportunities
Engineering and facility leaders will also explore the feasibility of converting fuel-based equipment and building systems to electric alternatives. This can include replacing gas-powered boilers with electric heat pumps, transitioning to electric vehicle fleets for patient transport or facility maintenance, and using electric equipment and appliances. Electrification reduces reliance on fossil fuels and can result in increased energy efficiency, decreased carbon emissions, and lower operational costs across the life cycle — all critical steps toward decarbonization.
Green Building Design and Sustainable Construction
If new construction is unavoidable, it’s important to leverage proven green building principles to create resource-efficient structures that optimize energy and water efficiency, improve indoor air quality, use sustainable materials, and take advantage of natural light and ventilation to create healthier and more productive spaces for occupants while reducing operating costs.
Water Conservation
Energy use is only one facet of healthcare sustainability management. Health systems should also consider implementing monitoring and water-saving strategies, including low-flow fixtures, leak detection systems, and stormwater management, and educating staff on water conservation practices.
Waste Management
It’s also critical to minimize waste generation through careful purchasing, source reduction strategies, staff education on proper segregation, and implementing reprocessing, product take-backs, and recycling programs for appropriate waste streams. Prioritizing products with minimal packaging and encouraging responsible disposal can significantly reduce the environmental impact of your operations.
Sustainable Procurement
Supply chain and procurement leaders should integrate responsibly sourcing and sustainable procurement best practices into RFX processes. Efforts can include purchasing equipment with a lower total cost of ownership and energy-efficient design, buying supplies with high recycled content or bio-based materials, and working with vendors that use lower carbon manufacturing practices. These leaders should also look for products with third-party certifications, such as Energy Star, EPEAT, Ecologo, or GreenSeal certifications that meet environmental and social responsibility standards.
What’s Your Plan?
Doing nothing or business as usual is not an option. As the effects of climate change become more apparent and increasing regulations require businesses — hospitals included — to take steps toward more environmentally responsible operations, it’s important to formulate strategies now. The sooner, the better.
Keep two key considerations in mind:
- Done correctly, healthcare sustainability is an investment with significant, measurable ROI and long-term profitability.
- You don’t have to do it alone. The right experts with the right experience can help you identify opportunities and guide you through the process.
Embracing sustainability management in healthcare operations is much more than an environmental imperative; it’s a strategy that can significantly improve your financial performance, enhance your reputation, and position your health system for a more successful future.
Navigating the increasing complexities of healthcare sustainability can be challenging. To unlock your healthcare system’s full potential for sustainability, partner with an experienced sustainability solutions provider like Oakwell. Our experts can work with you to develop a customized plan, identify funding opportunities, and guide you through the implementation process, ensuring a smooth and successful transition toward short- and long-term wins and a more sustainable tomorrow. Contact us to learn more.
