Three ways to improve sustainability in healthcare technology management

by Agapito E. Morgan, March 2024

<p>Three ways to improve sustainability in healthcare technology management</p>

Because the healthcare industry is ever-evolving, providers must make near-constant investments in equipment, technology, and other resources to provide the highest level of patient care and remain competitive, while also being mindful of their environmental impact.

The healthcare sector is a major contributor to the causes of climate change. In the U.S., healthcare accounts for nearly 20% of gross domestic product, making it a major consumer of resources, as well as a major producer of waste and greenhouse gases — 8.5% of all U.S. carbon emissions stem from the healthcare sector.

Thankfully, medical advancements keep coming, and the industry needs to balance these advancements with maintaining natural resources. Here are three eco-friendly actions healthcare technology managers can take — and everything starts with a plan.

Create a sustainability strategy

For a sustainability plan, practicality is key. A realistic plan for implementation is as important as the strategy itself. Begin with defining the organization’s sustainability objective. Then identify any potential issues and determine the human and equipment resources needed for success. Which decision-makers and workers will most likely get the job done — and how will they do it? Who will manage the project? How will the work be accomplished? How will you measure and communicate the results?

Engagement is another important element of a sustainability strategy. Is a top-down approach or a grassroots campaign best for your organization? Or maybe a committed task force?

Taking ownership of the negative environmental impacts related to providing quality healthcare presents a complicated, costly dilemma for the sector. Furthermore, an effective carbon reduction plan requires significant capital and human resources. While investing in sustainability has proven, positive results, how do you pay for it and where do you begin?

Embrace telehealth to reduce transportation emissions

Transportation is one of the biggest opportunities for hospitals and other healthcare organizations to reduce greenhouse gas numbers. A study by the U.S. Government Accountability Office found that the transportation sector is the largest source of greenhouse gas emissions in the country. Transportation activities accounted for 29% of total U.S. emissions in 2021, according to the latest information from the Environmental Protection Agency.

Consider the sheer number of patients traveling to and from medical appointments daily. Healthcare organizations can make huge strides in their sustainability goals with a few transportation upgrades.

The more obvious options for improvement are replacing gas-powered fleet vehicles with electric vehicles, installing onsite charging stations for staff and patrons, and offering commuting incentives that promote carpooling or using public transportation.

Creating or expanding telehealth programs is another option for healthcare providers to mitigate their carbon footprint. Large providers, such as UC Davis Health in California, embrace technology and the benefits of virtual care. Research teams from UC Davis conducted a study to assess the reduced carbon footprint offered by telehealth visits during the pandemic, as compared to in-person visits.

The study found that eliminating the need to commute prevented more than 53 million miles’ worth of emissions — or the equivalent of about 113 round trips from Earth to the moon. Use of telehealth also saved an estimated 204 cumulative years of travel time and more than $33 million in travel-related costs.

A Wall Street Journal article on the topic reported that CommonSpirit Health in Chicago saved 7,662 metric tons of carbon dioxide in 2022 through telehealth, and Kaiser Permanente’s Northwest region recently reduced its carbon footprint by about 7,500 metric tons a year.

Leverage integrated robotics technology

Artificial Intelligence (AI) technology is growing rapidly within the healthcare industry. The global AI in healthcare market size was estimated at $22.45 billion in 2023 and is expected to expand at a compound annual growth rate of 36.4% from 2024 to 2030. This factor creates an opportunity for healthcare organizations to leverage machines, drastically shifting operating models, while still prioritizing patient care.

AI can help providers gather, store, and analyze information, creating large datasets from which to glean information. AI can also be used to optimize machine performance, reducing energy use and medical waste.

AI technology in the form of software and hardware has the capacity to transform the healthcare industry and make it more efficient and sustainable. More than 200,000 industrial robots are installed annually around the world. In healthcare, they are used to perform integral work in operating rooms, as well as delivering supplies throughout hospital facilities. Robotic process automation uses computer programs to make repetitive tasks more efficient and accurate, such as billing, obtaining prior authorization, and similar work.

Selecting a finance team

Modern healthcare technology is a large investment, so many providers choose to finance — allowing them to reap the benefits of state-of-the-art technology with minimal impact to capital budgets. When financing healthcare technology solutions, healthcare companies should consider return on investment, the financing structure, and the lending team’s capabilities.

Here are qualifications to look for when choosing a financing provider:

  • A clear understanding of your business and the overall healthcare technology arena
  • A proven track record in customizing sustainable, scalable financing structures to support your goals
  • A trusted, reliable source of capital
  • Experience in creating strategic plans to reduce your organization’s energy consumption
  • A well-established team that has survived economic ups and downs, and are experienced in financing healthcare equipment

To learn more, visit key.com/healthcarebanking, or contact:

Agapito “Aga” Morgan

  • Commercial Healthcare Leader, KeyBank

This article is for general information purposes only and does not consider the specific investment objectives, financial situation, and particular needs of any individual person or entity.
KeyBank does not provide legal advice.

All credit products are subject to approval, terms, conditions, and availability and subject to change.

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