Frequent listeners of this podcast are well aware healthcare emits an immense amount of carbon pollution at over 600 million metric tons annually. This is substantially due to energy waste or inefficiency. For example, hospitals, that account roughly 35% of the industry’s GHG emissions, loses or forgoes tens billions in annual revenue or explicit and implicit lost opportunity costs. Healthcare pays in several ways for its energy inefficiency. Among other reasons, though one of the world’s most high tech sectors, healthcare still largely consumes electricity produced by burning fossil fuels. Heat-generated electricity is significantly less efficient than use of renewable energy technology that avoids converting heat to electricity or work. Renewable energy is increasingly more price efficient (that explains why 92% of new electricity produced in 2024 was via renewables). Healthcare utilization or demand is increased as a result of healthcare’s carbon pollution and hospitals already face market headwinds, moreover the fact inflation-adjusted payment rates have been stagnant to negative for several years.
Information on Eneration can be found at: https://www.eneration.com
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The Healthcare Policy Podcast ® Produced by David Introcaso