Healthcare Provider Saves $550,000 Through Strategic Natural Gas Procurement

The opportunity

A Florida healthcare provider sought a more coordinated approach to natural gas procurement as rising energy costs put pressure on its budget.

Referred to Tradition Energy by a global consulting firm, the healthcare product and service supplier operated four hospitals and eight clinics across Florida. With significant natural gas requirements across its facilities, rising costs created a need for greater visibility, control, and predictability.

Energy procurement was being managed inconsistently across individual locations, limiting the organization’s ability to leverage its combined purchasing power. The provider engaged Tradition to evaluate its existing approach, identify cost-saving opportunities, and establish a more centralized procurement strategy.

Tradition found that many facilities were purchasing natural gas on volatile variable utility rates, leaving the organization exposed to changing market prices and making future energy expenses difficult to predict.

Other facilities were operating under separate third-party supply agreements with little coordination across the portfolio. This decentralized approach prevented the provider from leveraging its total natural gas demand when negotiating with suppliers.

Tradition recommended aggregating the organization’s natural gas load and conducting a competitive RFP among qualified Tier-One suppliers. Based on the client’s objectives and market exposure, a fixed-rate structure was identified as an effective way to reduce volatility and strengthen budget predictability.

The Result:
Lower Costs, Greater Price Stability

Cost Reduction

The competitive procurement strategy secured a fixed-rate natural gas agreement that reduced the healthcare provider’s natural gas costs by approximately 30%.

Thousands In Savings

By aggregating demand and introducing competition among four Tier-One providers, Tradition helped generate approximately $550,000 in natural gas savings.

Improved Budget Certainty

Centralizing procurement and transitioning away from variable market exposure provided greater protection against future price volatility and established a more predictable approach to energy budgeting.

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 Saves $550,000 Through Strategic Natural Gas Procurement

The opportunity

A Florida healthcare provider sought a more coordinated approach to natural gas procurement as rising energy costs put pressure on its budget.

Analysis

The Result:
Lower Costs, Greater Price Stability

Cost Reduction

Thousands In Savings

Improved Budget Certainty

Client Testimonials

The Scale and Experience Behind Every Recommendation

Case Studies

Proven Results in Healthcare

Healthcare System Gains Better Pricing Through Greater Supplier Competition

Healthcare Provider Reduces Natural Gas Costs by $550,000

Hospital District Gains Greater Cost Control in Newly Deregulated Market