Blog

Healthcare versus Health-Cost

Is there an Answer?
“More than half of the respondents (52%) said that they would stay longer than they otherwise might with a company that had made stretching ESG commitments and also recommend it to others as a good place to work.”
Bupa Research

With the new year upon us, many Investors, Owners and Care Providers are still looking at 2024 strategies with question marks over budgets. Utility costs are still a significant outgoing for Senior Living and Healthcare facilities, and the cost of care is already a tough ask for many families and loved ones looking for the best quality care available in the UK. So, is there an answer for Care Providers when it comes to finding cost savings?

While freeing up money isn’t a simple task in this day and age, and interest rates alongside inflation are only rising – Utopi do offer a solution to those outgoings that can be in the control of care facilities, in the form of utility costs.

We’ll break down some key areas that could ease the financial strain for your utility costs and how smart technology can make a difference to the bottom line:

1. Real-time Insights & Operational Savings.

Smart technologies like Utopi can drive operational efficiency by enhancing data-driven decision making; and data-driven operations. Collecting data in real time on how your assets are being used, being lived in, and being managed can flag unnecessary waste and allow you to react quickly to reduce overheads and consumption. This could be gaining more granular data on heating in private rooms and/or shared spaces, it could be better understanding energy consumption and carbon emissions, or it could be monitoring occupancy in communal areas of a care facility.

Data is just the beginning, and at Utopi we believe the real impact comes from turning that data into actionable insights. Taking granular data and using that to make a real impact – this is where that data and insights can drive cost savings. For example, we have clients using the Utopi heatmap to monitor average temperatures in spaces, and with an understanding that 20-22°C is a comfortable level, anything above that should be addressed. It could be reducing heating from 25°C and above, or simply turning heating off in unoccupied spaces to help save energy waste. Because ultimately energy costs money, and every small change can make an impact on those utility bills. But the key is using the real-time data to enhance operational efficiency and uncover operational savings, in other words using data for root cause analysis and make targeted interventions.

2. Return on Investment & Cost Savings.

When costs are high and savings are a key priority, return on investment for new smart technologies and data solutions is key. Utopi has been designed with the focus on generating an ROI as quickly as possible – because we understand the challenges available to the sector. That ROI is proven to be achieved within 12-36 months, depending on site, and is based off the reduction in energy consumption and associated utility bills.

Of Utopi’s innovative solutions, Jonathan Burridge – CEO and Co-Founder says:

“The great news is our product does have a really clear return on investment. With the energy control methods we’ve deployed, things like control of thermostatic radiator valves and various different alerts and capabilities that we have in our platform; there is a direct cost saving on energy.

And naturally in a care setting, we need to keep these spaces warm, and in the winter the challenge is not overheating to the extent that it either becomes uncomfortable, or there is a significant amount of waste,  so with our products you can be confident that those thresholds have been set and managed by the platform and by the technology which will also underpin a very clear savings profile throughout the period.  We’ve modelled this for all the clients in all the various different settings that we are active in, and a 24-month payback is always achievable, sometimes it’s much quicker than that.” (ESG in Healthcare: Care Providers and Operators)

3. ESG Performance & Resident Satisfaction.

While operational costs and NOI are a key focus for Care Providers, it’s also important to remember the importance of ESG and why it’s such a key aspect of Senior Living and Healthcare assets in 2024. Not only is it a key sign of caring for your residents and your staff, but it’s also proven to positively affect the attraction and retention of residents. Because a stamp of ESG performance, and of prioritising doing better in the sector, is a winning factor in people choosing a care facility. And at the end of the day, the numbers don’t lie around how it can engage a workforce:

“More than half of the respondents (52%) said that they would stay longer than they otherwise might with a company that had made stretching ESG commitments and also recommend it to others as a good place to work. The figure rose to 60% among respondents from generation Z (those aged 18 to 22).” (Bupa Research)

The Utopi x Delphi Care Partnership:

Utopi and Delphi Care bring together innovative technology solutions and long-standing service in the Healthcare sector. Together we know the market, we understand the needs of real estate Investors and Care Providers and can ensure you are given the advice and guidance you need to always ensure top quality care is in sight. And ultimately, we don’t see sustainability or the reduction in energy and quality care as being a trade off on cost.

For more information on Utopi and Delphi Care, and how our partnership can help you with reducing operational costs in 2024 and beyond, make sure to get in touch.

See our ‘ESG in Healthcare’ series on YouTube for more context on ESG and saving potential, with Oakland Care offering their advice on what’s possible.

Author: Matthew Taylor, Alternative Markets Lead.

Speak to our expert team today on how Utopi can help you leverage the benefits of ESG solutions in Healthcare. Click here, or email Matthew, Alternative Markets Lead: matthew.taylor@utopi.co.uk.

?> ?>