Geisinger Health System Saves $6.3 Million Annually with Energy Efficient Practices

The Premier healthcare alliance releases white paper on Geisinger’s success with investments in energy management

CHARLOTTE, N.C.--()--Energy efficient initiatives including reducing greenhouse gas emissions and water use, and maintaining green construction practices help Geisinger Health System of Danville, Pa., save more than $6.3 million annually.

In a recent Action For Better Healthcare blog post, former Palmetto Health CEO Kester Freeman discusses a newly released Premier healthcare alliance white paper by Alan R. Neuner, CHFM, associate vice president of facility operations at Geisinger, giving insight into the importance of energy efficiency.

As energy costs soar nationwide, valuable dollars are consuming up to 3 percent of a hospital’s total operating budget – and up to 15 percent of their annual profits. This money could be used instead to improve the quality and safety of care delivery.

Neuner says that “Investment in energy efficiency lowers cost and increases profitability while improving the environment and health of the communities we serve – a perfect ‘win-win.’”

According to Neuner, healthcare executives should take a leadership role in investing in energy efficiency with proven initiatives that can positively and quickly impact a hospital’s bottom line.

Through a successful energy reduction program, Geisinger has been able to:

  • Achieve more than $6.3 million annual savings;
  • Hold an average return on investment of 3.7 years on investments;
  • Reduce greenhouse gas emission by 80 percent annually (more than 42,000 tons);
  • Reduce water use by 20 percent annually (25 million gallons); and
  • Double its campus square footage since 1988 with no increase in electrical demand.

On March 2, from 2-3 p.m. ET, Neuner will speak on the first in a series of teleconferences to discuss energy management and reduction. The 2011 Energy Leadership Forum will be a part of Premier’s complimentary, open to the public Advisor Live® teleconferences that inform participants on key healthcare topics. In January, Neuner spoke with a group of healthcare experts at Premier’s annual Governance Education Conference about energy management.

The teleconference series is part of Premier’s energy program, SPHERE® (Securing Proven Healthcare Energy Reduction (for the) Ecosystem), a collaborative with alliance members and industry partners to have a positive impact on climate change and public health while reducing energy costs.

Michael Georgulis, Premier vice president of strategic sourcing said, “Premier’s SPHERE energy program provides the tools necessary to support members in their energy management to reduce energy costs, use, and their carbon footprint, as well as their public health impact. It also offers a portfolio of contract categories promoting energy conservation, energy management and renewable energy solutions.”

About Geisinger Health System

Geisinger is a $2.5 billion integrated health services organization widely recognized for its innovative use of the electronic health record, and the development and implementation of innovative care models including advanced medical home and ProvenCare ("warranty") program. The system serves more than 2.3 million residents throughout 42 counties in central and northeastern Pennsylvania. For more information, visit

About the SPHERE collaborative

SPHERE – Securing Proven Healthcare Energy Reduction (for the) Ecosystem – builds on Premier's award-winning environmental leadership program, GreenHealthy®, which includes the organization's Environmentally Preferable Purchasing™ program, as well as its internal employee-led, corporate-wide Yes to Green program. SPHERE helps Premier alliance members support patient care and public health through cost-effective, environmentally sensitive energy procurement, use and management practices. It also brings healthcare energy leaders together to share best practices and benchmark their energy use to positively impact climate change and public health. For more information, visit

About the Premier healthcare alliance, Malcolm Baldrige National Quality Award recipient

Premier is a performance improvement alliance of more than 2,500 U.S. hospitals and 72,000-plus other healthcare sites using the power of collaboration to lead the transformation to high quality, cost-effective care. Owned by hospitals, health systems and other providers, Premier maintains the nation's most comprehensive repository of clinical, financial and outcomes information and operates a leading healthcare purchasing network. A world leader in helping deliver measurable improvements in care, Premier has worked with the Centers for Medicare & Medicaid Services and the United Kingdom's National Health Service North West to improve hospital performance. Headquartered in Charlotte, N.C., Premier also has an office in Washington. Stay connected with Premier on Facebook, Twitter and YouTube.


Premier healthcare alliance
Alven Weil, 704-816-5797

Release Summary

Geisinger Health System saves $6.3 million annually with energy efficient practices


Premier healthcare alliance
Alven Weil, 704-816-5797