Healthcare Provider Reduces Natural Gas Costs by $550,000

The opportunity

A Florida healthcare provider sought to reduce rising natural gas costs and improve procurement across its hospitals and clinics.

Referred to Tradition Energy by a global consulting firm specializing in areas including performance improvement, the healthcare provider needed expert guidance to address rising natural gas expenses. Its energy requirements spanned four hospitals and eight clinics, creating a sizable and complex portfolio.

With procurement managed differently across individual facilities, the organization lacked a consistent strategy for purchasing natural gas and managing market risk. Tradition was engaged to evaluate the portfolio, identify opportunities for savings, and establish a more coordinated approach across all locations.

Tradition found that portions of the portfolio were purchasing natural gas through variable-rate products. Because these rates fluctuate with market prices, the provider faced increased exposure to unexpected cost spikes and budget uncertainty.

The review also found that some facilities operated under third-party supply agreements while others remained on default utility rates. This fragmented structure made it difficult to maintain a consistent approach to pricing and risk management.

Tradition identified an opportunity to centralize procurement and aggregate the natural gas load across the provider’s facilities. Combining demand created a more attractive opportunity for suppliers and positioned the organization to generate greater competition for its business.

The Result:
Lower Costs, Greater Procurement Control

Cost Reduction

Tradition recommended a fixed-rate product that reduced the provider’s natural gas costs by 30% compared with its previous agreement while protecting against future market volatility.

Natural Gas Savings

Tradition solicited competitive pricing from four Tier-One natural gas suppliers, resulting in a new agreement that generated approximately $550,000 in savings.

Centralized Procurement

Aggregating the provider’s natural gas demand and centralizing procurement created a more efficient and consistent purchasing process across its four hospitals and eight clinics.

Client Testimonials

I’ve really enjoyed working with Tradition Energy. I appreciate their diligence, follow-up, and expertise in helping us navigate our utility needs in open markets. I also value the updates and resources Tradition provides—they’re always helpful and informative.

Asset Manager,
Healthcare Data Center

My Energy Advisor had me sold on Tradition Energy during my initial reach-out. Their attentiveness to not only our company but also our 5000 employees was over the top! Energy deregulation is new to Lubbock, and the learning curve was huge. They were timely in answering all of my questions, assisting me in preparations to present to our Board of Managers, creating an educational video for our staff, and working closely with our legal team to ensure we were prepared to lock in as soon as the opportunity came. Lubbock had multiple delays which pushed out our timeline, but I was never worried because they kept me in the loop on all the happenings in the market. I have referred Tradition Energy to many others, and they too are extremely pleased with the service and the insight Tradition Energy provides. Well Done!

Decision Maker,
Medical Center Facility

Congratulations to the whole Tradition Energy team for hosting an exceptional client training seminar. The information was invaluable and presented in a really fun way. Please extend my gratitude to folks who took time from their schedules to prepare and then present to us.

Director of Facilities,
Regional Hospital

Tradition Energy was knowledgeable, quick to react, and easy to work with through the entire procurement process.

Director of Strategic Sourcing,
Regional Hospital

I’ve really enjoyed working with Tradition Energy. I appreciate their diligence, follow-up, and expertise in helping us navigate our utility needs in open markets. I also value the updates and resources Tradition provides—they’re always helpful and informative.

Asset Manager,
Healthcare Data Center

My Energy Advisor had me sold on Tradition Energy during my initial reach-out. Their attentiveness to not only our company but also our 5000 employees was over the top! Energy deregulation is new to Lubbock, and the learning curve was huge. They were timely in answering all of my questions, assisting me in preparations to present to our Board of Managers, creating an educational video for our staff, and working closely with our legal team to ensure we were prepared to lock in as soon as the opportunity came. Lubbock had multiple delays which pushed out our timeline, but I was never worried because they kept me in the loop on all the happenings in the market. I have referred Tradition Energy to many others, and they too are extremely pleased with the service and the insight Tradition Energy provides. Well Done!

Decision Maker,
Medical Center Facility

Congratulations to the whole Tradition Energy team for hosting an exceptional client training seminar. The information was invaluable and presented in a really fun way. Please extend my gratitude to folks who took time from their schedules to prepare and then present to us.

Director of Facilities,
Regional Hospital

Tradition Energy was knowledgeable, quick to react, and easy to work with through the entire procurement process.

Director of Strategic Sourcing,
Regional Hospital

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Healthcare Provider Reduces Natural Gas Costs by $550,000

The opportunity

A Florida healthcare provider sought to reduce rising natural gas costs and improve procurement across its hospitals and clinics.

Analysis

The Result:
Lower Costs, Greater Procurement Control

Cost Reduction

Natural Gas Savings

Centralized Procurement

Client Testimonials

The Scale and Experience Behind Every Recommendation

Case Studies

Proven Results in Healthcare

Healthcare System Gains Better Pricing Through Greater Supplier Competition