By: Angie Stokes, Healthcare Market Leader
Quantifying and accounting for avoided costs is an elusive art. Of course, controlling budgets and ensuring cost overruns are controlled and eliminated is hugely important to any business, but how do we take cost savings endeavors and make them work for us?
I like to think about it in two ways: short term and long term. In the short term, if I spend less this month in my utility expense line item, I have some funds available in that budget. I can use those funds on other things, such as a cost savings measure being discussed in quarterly consultations with my energy engineer from Harshaw Trane. That investment will, in turn, provide more savings in the expense line going forward.
But what about long term? What if it was possible to develop your budget, knowing that you will avoid hundreds of thousands of utilities expense in the coming fiscal year? Would you take that money and use it elsewhere? Would it disappear? Just as you might squirrel away a tax break to build an investment fund, you can squirrel away energy cost avoidance to use on clinical or infrastructure investment. At a Kentucky Hospital, Harshaw Trane Intelligent Services has helped a small facility avoid more than $10,000 in energy alone, in only a quarter’s time. Now, multiply that by the number of facilities you have and by about a year’s time. Are those real dollars? Now you’re thinking like we do.
Harshaw Trane not only helps Kentucky Healthcare clients with energy sustainability on the building side, we are also here to help with your rates and pay structures. Harshaw Trane helped develop the Kentucky Commercial Utility Customers organization. It was developed to represent commercial rate payors, including the healthcare sector, in Utility Rate Cases across the Commonwealth. Their goal is to minimize the impact of rate increases to a sector that is often under-represented. Learn more about how Harshaw Trane can help you capitalize on avoided budget increases and provide real savings.