Healthcare leaders across the U.S. are turning to a transformative model for energy management and infrastructure delivery: Energy-as-a-Service (EaaS). ENFRA, formerly known as Bernhard, pioneered this model in 2017 and remains the market leader, with more than 250 hospitals currently in active due diligence.
Healthcare organizations are increasingly adopting EaaS to preserve debt capacity, realize substantial cost savings, and build a foundation for long-term sustainability. This shift is revolutionizing how hospitals manage energy, allowing them to redirect capital toward enhancing patient care while also meeting environmental goals.
To explore how Energy-as-a-Service is reshaping healthcare, we spoke with industry leaders about the financial, operational, and environmental advantages driving the rapid adoption of this innovative approach.
Q: Brandon Seibold, Senior Finance Officer at Adventist Health System – Can you speak to the financial impact of Energy-as-a-Service on your organization?
“Adventist Health was the first system to capitalize on a tax-exempt basis under the Energy-as-a-Service model. This led our organization to execute the largest EaaS partnership on record. From a financial perspective, this partnership has been a game-changer. By leveraging off-balance-sheet financing at no cost of capital premium, we were able to significantly reduce the upfront capital expenditures required to improve energy infrastructure. This model allowed us to preserve debt capacity, which we can redirect towards patient care, technology, and other critical priorities. The savings are substantial, and the financial flexibility it provides is a huge advantage, particularly in an environment where every dollar matters.”
Q: Jose Lozano, EVP, Chief Growth Officer at Hackensack Meridian Health – What are some of the high-level benefits that drove your decision to enter into this partnership?
“At Hackensack Meridian Health, we’re always looking for ways to improve operations while reducing costs and increasing sustainability. The Energy-as-a-Service model provided an opportunity to do all of that at once. Partnering with ENFRA not only allowed us to enhance our energy efficiency but also provided an opportunity to future-proof our facilities with a sustainable infrastructure. We are no longer simply reacting to rising energy costs but taking proactive steps to drive long-term value. In addition, the financial structure of the deal aligns well with our strategic goals of building stronger, more resilient healthcare systems without overextending our balance sheet. It’s a win-win for the entire organization, from a financial, operational, and sustainability standpoint. As part of our sustainability mission, this partnership is a critical step toward reducing our carbon footprint and achieving our goal of carbon neutrality in the coming years.”
Q: Ray Satterfield, VP, Facilities Management at CHRISTUS – Can you describe the operational advantages of this partnership from a facilities management perspective?
“At CHRISTUS Health, our priority is to ensure that our facilities run smoothly and efficiently, without disruption to patient care. The Energy-as-a-Service model allows us to partner with Bernhard to renew and enhance our energy infrastructure, ensuring that everything is continually optimized for performance. This means less risk for us when it comes to system maintenance and performance, and more focus on the overall patient experience. Furthermore, it’s not just about reducing costs; the partnership improves operational reliability and allows our teams to work more efficiently across the board. From a facilities perspective, we’re benefiting from a holistic energy solution that adapts to our needs and supports the hospital’s broader operational and sustainability goals.”
Q: Terry Shirey, Managing Director, Kaufman Hall – Looking ahead, how do you see Energy-as-a-Service evolving in the healthcare space?
“Hospitals and health systems continue to face significant financial and operational headwinds, which are impacting operating expenses, debt capacity and the balance sheet. At the same time, many organizations have lagged in making energy infrastructure improvements and are missing out on efficiency and sustainability opportunities. Energy-as-a-Service is emerging as a critical tool for helping providers enhance infrastructure, boost sustainability, and create long-term savings.”
Q: Rob Guthrie, CEO, ENFRA– What excites you most about the future of Energy-as-a-Service in healthcare?
“In every EaaS transaction, our primary goal is to increase the net worth of our customer. Our EaaS model is the perfect vehicle for this goal: it reduces the customer’s energy consumption and demand; increases the resilience of the customers’ infrastructure; transfers and eliminates long-term operational risk; and provides liquidity at a very attractive cost. The data from our healthcare segment reflects the value that we bring—subscriptions have increased at an annual rate of 40% since 2017, and over 70% of our first-mover customers in healthcare (2017-2022) have pursued a second or third EaaS transaction with us in the years following. We could not be more excited about broadening our impact in U.S. healthcare—by far our #1 market segment—in the years ahead.”
As healthcare leaders nationwide continue to explore and adopt Energy-as-a-Service, the future of energy management in the sector looks brighter than ever. For more information on how Energy-as-a-Service can benefit your healthcare system, contact David Krauss, Executive Vice President of Development at ENFRA at 973-985-2782 or dkrauss@enfrasolutions.com or visit www.enfrasolutions.com.
