How Propane Can Reduce Healthcare Facility Costs, Improve Reliability

As extreme weather events grow more frequent, healthcare facilities are seeking efficient and sustainable energy solutions.

Propane-powered cooling and combined heat and power (CHP) systems offer a promising path forward—delivering reliable on-site power, cutting energy costs, and reducing greenhouse gas emissions.

“Propane-powered cooling and CHP systems provide unmatched reliability and efficiency, especially in today’s evolving energy landscape,” says Bert Warner, director of commercial business development at the Propane Education and Research Council (PERC).

Propane cooling technology can support a range of healthcare facility needs—from comfort conditioning and process cooling to dehumidification, medium-temperature refrigeration, and extreme ambient operations. These systems function similarly to traditional cooling technologies but use propane to power compressors or burners, cutting electricity usage by up to 90%. This translates into substantial cost savings, environmental benefits, and a reduced load on the electrical grid—without sacrificing performance.

To encourage adoption and innovation, PERC launched the Alternative Technology Demonstration and Research Program earlier this year. The initiative promotes the use of propane cooling and CHP systems while collecting data to refine and expand propane’s role in addressing modern energy demands. CHP systems, in particular, boost efficiency by capturing and repurposing heat that would otherwise be wasted during electricity generation.

Warner recently spoke with Healthcare Construction + Operations News about how healthcare facilities can leverage these technologies—particularly through the new demonstration program—to build more resilient, adaptive operations in the face of climate change.

HCO: In recent years, extreme weather events have become more frequent. How does that trend put communities and critical infrastructure, like healthcare, at risk?

Bert Warner: You can hardly turn on the television without seeing something weather-related happening somewhere. It’s unfortunate, but it’s something we have to deal with. Instead of being reactive, we need to acknowledge that it’s not if something happens, it’s when. These events are happening more frequently, they seem to be bigger, and they’re incredibly more costly. And it’s not limited to one part of the country. Another thing that ties into this is the instability of the electric grid. When you combine extreme weather and grid instability, you have to start thinking about resilient power solutions—not just for convenience, but for health and safety. Especially in healthcare, you need resilient, responsible power, and propane is able to deliver that.

HCO: Healthcare facilities are large energy users. How are they uniquely affected by power outages?

Bert Warner: It’s mission critical. You’re talking about life-sustaining equipment—breathing machines, ventilators, MRI machines, CT scanners—all of which require a lot of power. Whether there’s a storm or not, this equipment needs to run. It’s not just about keeping the lights on. It’s about keeping medications at the right temperature, preserving blood samples, and making sure there’s hot water for hygiene and sanitation. These are baseline requirements in any healthcare setting, and they all depend on reliable energy.

HCO: Have any healthcare facilities recently made the switch to propane, and what does that process look like?

Bert Warner: That’s actually a big part of my job—starting those conversations and changing the default from diesel to propane. A lot of times we don’t know exactly where the equipment ends up, but we’re working to change that with a new PERC-sponsored funding program that promotes the installation of CHP units in healthcare and hospitality facilities. This program lets us gather data and create case studies so we can go to specifiers and engineers and say, ‘Hey, look what we did at this facility in Nashville or Dallas.’ We just launched the program on Jan. 1, and have seen good interest. We will share case studies and more information once installations are complete.

HCO: Is this program viable for healthcare facilities of all sizes and types?

Bert Warner: Absolutely. From small clinics to large hospitals with multiple satellite buildings, it’s viable. Maybe a facility has a building that’s off the main power supply and wants to run it independently—that’s a great fit. There’s really no size limit. One big change in the propane world is that manufacturers are making larger equipment now, so we’re not talking about just a backyard grill tank anymore. These are substantial systems with above-ground or buried tanks that can handle large energy loads.

HCO: What kind of infrastructure is required for a propane backup system? Is it easier to implement in new builds or retrofit into existing facilities?

Bert Warner: The infrastructure needs are really the same either way. You need a storage system—a tank of some sort—but it doesn’t look any different from other backup systems. Of course, it’s a little easier to implement in new construction because you can plan it from the start rather than work around existing structures like parking lots. But as far as system setup, it’s essentially the same whether it’s a retrofit or a new build.

HCO: Are there any common misperceptions about propane?

Bert Warner: anymore. Today, we’re talking about systems that power large healthcare facilities and campuses. There’s also a perception that propane isn’t as clean or modern as other fuels. The EPA has approved propane as a clean energy source. That’s not us saying it—it’s a third party, and a pretty respected one at that. So, when they say, ‘This is clean, this is okay to use,’ that’s powerful.

HCO: What do you see as the most compelling environmental benefits of using propane over alternatives?

Bert Warner: Aside from the EPA approval, propane has a very low carbon intensity compared to diesel and the average U.S. grid electricity, depending on how that electricity is generated. Propane systems also have lower emissions, including nitrogen oxides and particulate matter, which means better air quality, especially in dense or sensitive environments like hospitals. And propane doesn’t degrade over time like diesel, so it’s always ready when you need it.

HCO: Is there anything else you would you share with those responsible for designing and maintaining resilient healthcare infrastructure?

Bert Warner: Don’t wait for the crisis. Plan for resilience now. Whether you’re building from scratch or updating existing infrastructure, consider all your options. Propane isn’t just a backup plan—it’s a reliable, clean, and scalable energy solution. If you’re concerned about uptime, emissions, cost, or flexibility, propane should absolutely be part of the conversation.

Source: HC+O News