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

Hand, Foot and Mouth Disease on the Rise

A number of states are reporting an uptick in HFMD, a highly contagious viral illness that primarily affects infants and young children.


Preparing for the Hazards of Winter Weather

Winter is here and healthcare facilities must be ready for inclement weather to prevent slips and falls.


BayCare Reveals Pagidipati Children's Hospital at St. Joseph's

It is a freestanding facility scheduled to open in 2030.


Why Identity Governance Is Becoming a Facilities Management Issue

As healthcare buildings grow more connected, weak identity controls can expose HVAC, security and other critical systems to serious risk.


Habitat Health Opens South Los Angeles PACE Center

The new center strengthens the local care infrastructure, delivering integrated medical, social and in-home care.


 
 


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.

 
 
 
 

Healthcare Facilities Today membership includes free email newsletters from our facility-industry brands.

Facebook   Twitter   LinkedIn   Posts

Copyright © 2023 TradePress. All rights reserved.