Healthcare Industry

The national healthcare industry is expected to see expenditure growth of 5.3% by 2033, according to CMS projections. The North American market spent over $4 trillion in 2024. Hospitals, clinics, and other facilities work to improve patient outcomes, increase provider and patient safety, and deliver value, while at the same time diversifying care delivery models to accommodate changing needs across a variety of geographies. But with this diversification come new challenges and considerations when it comes to conserving resources, managing risk and brand image, and delivering on sustainability goals.

What Challenges Is the Healthcare Industry Facing Today?

Facilities in this industry, including medical centers, free-standing clinics, and hospitals, have unique operational needs. Energy and water are critical, high-use resources and therefore more susceptible to price fluctuations, as well as disruptions from natural disasters and climate change. Waste management also carries a measure of risk as regulations on both patient records and medical waste become more stringent, carrying the risk of crippling fines and reputational damage.

Maintaining business continuity and regulatory compliance, creating financial sustainability, pursuing carbon neutrality, and adapting to changing consumer needs, demands, and expectations are all critical goals for hospitals and healthcare.

High resource use may seem like the cost of doing business in an industry where “cutting corners” can have detrimental, costly effects. However, the healthcare industry has plenty of opportunities to include sustainability in its operations and daily practices—as a result, the industry can become more profitable.

What Should the Healthcare Industry Be Thinking About?

• Financial resilience: In 2018 alone, healthcare buildings used 581 trillion Btu of energy. Despite accounting for 4% of total commercial floorspace, healthcare buildings accounted for 9% of energy consumption in commercial buildings. In an uncertain health economy where disruption is imminent, the healthcare industry must focus on creating financial sustainability and resiliency. By defining sustainability targets and commitments—and then tracking and managing resources through management software, audits, and analytics—facilities can reduce costs, reduce maintenance expenses, and minimize risk.
• Regulatory compliance: Each healthcare facility deals with unique hazardous waste and privacy regulations, from General Data Protection Regulation (GDPR) to industry-specific state, local, and federal regulations. Waste audits are an essential component of a strong privacy and compliance program. Proper documentation of your findings reveals the greatest areas of risk, provides evidence of implementation, and measures ongoing program effectiveness.
• Renewable energy strategy: Defining a renewable energy strategy as part of a long-term sustainability strategy can help facilities transition to a healthier backup energy supply and close the gap between zero-carbon commitments and goals.
• Improving brand image: Hospitals can transform from care centers to community resiliency centers and earn new revenue streams through supplying EV charging stations to campus employees and visitors as well as reliable electricity in times of crisis.