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24.06.2015

Energy procurement in hospitals

Tender energy online and use maximum competition in the market.

When procuring goods, hospital operators often work with purchasing consultants. In many cases, they also procure electricity and gas and receive a pro rata commission depending on the savings - the critical point is: the prices for electricity and gas have been falling for years, so that hospitals are guaranteed to make savings on today's energy purchases even without consultants. However, some consultants are taking advantage of these lower market prices to make a name for themselves - and to cash in. The high commissions are not matched by anything in return, but only by a better exchange price. Thus, hospital operators end up paying more for their energy than they should. What can they do to avoid these costs? For one thing, energy purchasing should be separated, and for another, energy should be put out to tender online. Around 200 hospitals, 4 university hospitals and numerous old people's homes in Germany use the web-based tool from enPORTAL for this purpose and reach around 500 suppliers in the market as well as the best energy price at the time of purchase.

Do not confuse falling exchange prices with a price reduction

When you enter a hospital, you can imagine how many goods have to be bought regularly. From syringes and containers to light bulbs, there is a lot to get. Hospital operators often work together with purchasing consultants who take over this service. In many cases, however, electricity and gas are also purchased through purchasing. However, the latter are products whose prices are traded daily on the Leipzig Electricity and Gas Exchange (EEX) and are thus subject to sometimes strong fluctuations. The decisive difference to other goods is that for the exchange-traded goods electricity and gas the price does not depend on the quantity, but on the profile of consumption and the time of purchase. Especially in the last three years, the prices for power and gas on the EEX have fallen sharply. However, many consultants take advantage of this price drop to charge themselves a commission of sometimes more than 30 percent for their "service". For the hospital, this ultimately means additional costs for a saving that the consultant has not achieved through his own earnings. Sales representative Wilfried Rademaker from the company enPORTAL in Hamburg says: "It is frightening that some purchasing advisors claim that they have saved a lot of money when buying energy, although the lower prices have only come about due to the drop in prices on the stock exchange. There can be no savings compared to a worse price on the stock exchange. There is often a lack of knowledge on the part of hospital operators here." In the worst case, the operators even pay more for their energy than they would without consultants.

Lack of competition and opaque market

While smaller hospitals consume about 5 GWh, large university hospitals consume about 50 GWh. Here, for example, a considerable savings sum arises from the lower electricity price alone and thus a commission for the purchasing consultants, which hospitals can save themselves. In addition, some consultants often only request a few suppliers. "There is no trace of competition in the energy market in the offline procedures. Today, individual market opportunities can best be seized online by reacting immediately to the current exchange price development for electricity and gas. We make this possible for our customers with just a few clicks," says Clemens Graf von Wedel, Managing Director of enPORTAL.

Recommendation: Separate energy purchases and put them out to tender online

There are two simple ways for hospital operators to avoid extra costs. Wilfried Rademaker of enPORTAL recommends: "Separate electricity and gas purchasing from the rest of the goods purchasing. That way they save commission and ultimately money. Plus: put your energy out to tender online." enPORTAL offers companies and tradespeople as well as clinics just that: an online tool for energy purchasing that offers maximum competition, transparency and the best price at the time of tender. "Within the framework of an online tender with us, hospital operators only really see how high the savings amount is and how easily they can procure energy. We stand by them as a professional partner with advice and support," says Rainer Otto, Managing Director of enPORTAL. The business model of enPORTAL is different from the grey sheep. There is an annual flat rate for all services related to purchasing and energy data management, which is based on the number of purchase points and consumption.

Practical success in the clinic sector

There are already hospitals that do without purchasing consultants when buying energy and put out to tender online. Almost 200 hospitals, including the Helios clinics, have been working successfully with enPORTAL for years. As Full Service customer, they benefit from a personal account manager who takes care of energy data management and provides support for online tenders. "We no longer want to do without the online tool from enPORTAL and the fast processes for procurement. Today we can see which supplier makes us the best offer and how much money we can actually save thanks to the great competition in the portal," says Detlef Wachhals, Energy Buyer at KMG Clinics. Other hospital operators can also achieve these practical successes.

 

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