Energy Procurement for Senior Living & CCRCs

Energy Costs for Communities Where Comfort Isn't Optional

For senior living communities and continuing care retirement communities (CCRCs), energy is more than another operating expense. Heating, cooling, lighting, hot water, kitchens, laundry, medical equipment, and other essential systems have to support residents around the clock.

A campus may include independent living, assisted living, memory care, skilled nursing, dining facilities, common areas, administrative buildings, and other specialized spaces. Each may have different operating requirements, meters, account numbers, and usage patterns.

Predictability Matters

Senior living operators often plan budgets well in advance, while resident fees and other sources of revenue may be established on annual or longer planning cycles. An unexpected increase in energy costs can put pressure on operating margins that were calculated months earlier.

A well-structured energy contract can provide greater predictability by establishing the commodity rate for a defined period rather than leaving the community exposed to changing market or utility pricing.

The right contract isn't necessarily the lowest rate available on a particular day. It is the rate and structure that make sense for the community's usage profile, operating requirements, market, and budget objectives.

Multi-Building Campuses Add Complexity

A senior living campus may have numerous electricity and natural gas accounts spread across multiple buildings. Those accounts may have different renewal dates, usage levels, and contract terms.

Managing them independently can make it difficult to see the full picture.

A procurement review across the entire campus can identify upcoming renewals, compare supplier options, and create a more coordinated approach to energy purchasing.