Technology, Sustainability, and Benchmarking: Three Pillars for Optimizing Healthcare Facility Performance
Healthcare facility managers are confronting multiple demands, including improving patient care, enhancing operational efficiency, advancing sustainable development, and ensuring financial performance. Experts point out that technological upgrades, sustainability concepts, and benchmarking must become core priorities, and only through their synergy can more efficient and cost-effective operations be driven. This article is the third in a series, synthesizing practical insights from leaders at EY, Trinity Health, Cape Fear Valley Health Systems, and JLL.
Amid the multiple calls for improved patient care, operational efficiency, sustainability advancement, and financial performance optimization, healthcare facility managers are often pulled in many directions at once. Faced with so many competing demands, how can they make progress? Experts say three priorities must take center stage—technology, sustainability, and benchmarking—which work together to deliver more efficient, cost-effective operations.
Technology Adoption and Skills Upgrading: The Digital Path for Facility Management
Richard Taylor, a managing director at Ernst & Young, has created facility knowledge centers at multiple healthcare organizations. In an interview, he outlined three steps facility managers can take to accelerate digital skills upgrading. The first step is understanding the demand for technology applications that can provide the data needed to improve patient convenience. The second step is clarifying the scale of capital required to invest in AI-driven tools and equipment that can deliver reliable data points. The third step is providing analytical training to facility teams so they can derive insights from these data points.
"Hospitals and outpatient facilities are using automation to improve the experience, from installing sensors in soap dispensers to more complex aspects such as monitoring air pressure in operating rooms," Taylor said.
This automation-driven "patient experience" strategy is also more likely to attract younger patients to choose the same specialist again after their first visit. A recent JLL report noted that younger generations have a growing interest in additional healthcare amenities, which serve as a driver of a positive first-visit experience.Results from JLL's 2023 Patient Consumer Surveyshow that patients and visitors at healthcare facilities—especially those in urban areas—often experience long waits in crowded areas and encounter difficulties with wayfinding or finding parking.
"People are using apps on their iPhones to navigate within facilities," Taylor said. "Most health systems today understand that even in healthcare, the world has become more consumer-centric. And this applies equally to facility managers."
Sustainability Thinking: From Smart Buildings to Decarbonization Practices
Mark Grinis, who leads EY's Americas real estate digital transformation practice, noted that building management systems equipped with smart technology are critical—such systems can automatically turn off lights in unoccupied rooms and adjust temperatures based on usage. "Understanding how a building is used, and then adjusting energy consumption accordingly, is essential," he said.
As head of facilities management and construction systems at Trinity Health, Andy Woommavovah is undertaking the upgrade of facility lighting at some locations from fluorescent to LED systems. He is also working to replace aging chillers and refrigerants with high-efficiency products. He said that building automation systems and remote fault detection make it easier to phase out old, energy-intensive, high-emission equipment and replace it with modern equipment.
"The entire technology segment will bring disruptive change—provided we can afford the cost of layering this investment into daily operations, because it allows us to remotely monitor hundreds of assets, ensure they operate within set parameters, and help us detect faults and failures," he said.
As corporate engineering director at Cape Fear Valley Health Systems, Robert Melton manages 75 facility staff members. He believes that for healthcare facility managers, sustainability is more of an opportunity than an obstacle. "We must decarbonize as much as possible to reduce our carbon footprint and lower energy costs," he said. "We don't view it as a stumbling block. We are actively addressing it, and I think that's the right approach."
However, many facility managers in the field are still struggling with how to get started. Woommavovah noted that while some health systems that began decarbonization efforts before the COVID-19 pandemic are performing well, most that had not acted previously are now trying to find a path to decarbonization in the post-pandemic financial austerity vacuum.
The Energy Star program, administered by the U.S. Environmental Protection Agency, offers thePortfolio Managerenergy benchmarking tool, which healthcare facility managers can use to improve sustainability efforts.
"The tool is free to use," said Jennifer Leitsch, a managing director of climate change and sustainability services at EY. "You register an account and enter basic information about the building, such as square footage, occupancy, and use. Then you can connect directly with utility companies and have them import data into the Energy Star Portfolio Manager tool."
According toa primer from the Agency for Healthcare Research and Quality, the tool provides a score showing your building's energy performance relative to similar buildings in the United States, taking into account factors such as annual energy use per square foot, climate, geographic location, imaging equipment, and the number of staffed beds. For example, an Energy Star score of 75 means the building performs better than 75% of buildings nationwide with the same primary use.
Budget Management and Benchmarking: Seeking Efficiency Amid Resource Constraints
Given labor shortages and resource constraints, facility managers are redoubling efforts to improve net income and cash flow.
Melton said facility managers need to prioritize benchmarking to uncover operational efficiency and cost optimization opportunities. "Some teams, such as administrative staff, may leave at 5 or 6 p.m. A hospital with 2,000 employees may have teams working in shifts," he said. Facility leaders need to determine how to reduce energy costs in these spaces.
"We want more capital to carry out more projects," he added, emphasizing that since a large portion of existing budgets goes to salaries, it becomes critical to clearly identify and allocate spending and expected investment for non-labor activities such as repairs, upgrades, and preventive maintenance.
Mark Kenneday, director of healthcare market strategy and development at Gordian, noted that most healthcare provider networks are large in scale, increasing the complexity of facility planning and maintenance—especially in the context of continuous improvement, new construction, and renovations needed to improve patient care and remain competitive.
Modern Healthcare recently reportedon Kenneday's views about the importance of facility condition assessments in streamlining facility planning decisions and driving value for healthcare organizations. "The result is a validated, accurate, and reliable inventory of the institution's facility infrastructure, including all physical assets that require funded maintenance," Kenneday told Modern Healthcare.
Alison Flynn Gaffney, who leads JLL's healthcare division, emphasized that healthcare organizations must recognize and elevate facility managers as strategic partners. "I believe this trend will continue to scale," she said. "Investing in facility managers improves patient safety and the caregiver experience. For those systems that truly recognize the value of facility managers, this is a competitive advantage."