Developing a business case for investing in an energy strategy

Top management executives make decisions to invest in these improvements because someone has made a persuasive business case in support of the expenditure

By Healthcare Facilities Today


Facility managers know that significant savings can be achieved through investments in better air-handling systems, improved meter and monitoring systems, lighting modifications, variable-frequency drive (VFD) motor controls, demand-side management techniques, high-efficiency chillers and a variety of measures enumerated in the U.S. Green Building Council’s Leadership in Energy and Environmental Design criteria and standards, according to an article on the Health Facilities Management magazine website.  

But managers also need to remember that top management executives make decisions to invest in these improvements because someone has made a persuasive business case in support of the expenditure, not because someone has made a persuasive technology case to invest, the article said.

The article also included eight best practices managers should adopt when developing a business case for investing in a comprehensive energy strategy:

1. Create a concise, well-constructed proposal that zeroes in on the plan’s attractive return on investment and does not focus excessively on the proposal’s technological attributes.

2. Explain that the investment will reduce owner risk.

3. Demonstrate how an upgraded energy management system enhances the healing environment and improves the comfort of patients and other occupants.

4. Where possible, cite independent sources or bring in outside experts who can provide guidance and data that demonstrate the financial benefits of the investment.

5. Before preparing a presentation, meet with a top institutional financial executive to identify and assess prospective sources of financing.

6. Research past energy usage and spending and project future usage and spending.

7. Use language that corporate executives understand: speak in terms of dollars and risks, and focus on the investment’s contribution to the institution’s financial viability and long-term financial strength.

8. Show how the plan promotes compliance with regulatory requirements.

Read the article.

 

 



December 4, 2013


Topic Area: Energy and Power


Recent Posts

AI Adoption on the Rise Among Leaders

AI usage increased in all markets in the fourth quarter of 2025.


TriasMD Officially Opens DISC Surgery Center at Tarzana

At 10,930 square feet, DISC Surgery Center at Tarzana includes three high-technology operating rooms and 11 patient care bays.


Goshen Health Announces Partnership with Parkview Health

Through this partnership, Goshen anticipates becoming Parkview's largest hospital outside of Fort Wayne and will serve as a regional hub for care, access and growth.


Severe Winter Weather: What Healthcare Facilities Must Prioritize

Prioritizing critical systems and strategies is key to protecting patients, staff and operations during severe winter weather.


Recovery Centers of America Opens New Facility in Florida

Spanning 19 acres, the campus will include seven buildings, a pond, an outdoor recreation area with a pool, a full basketball court and a rock-climbing wall.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.