Not-for-profit health systems are navigating one of the most challenging financial environments in recent memory. Rising labor costs, intensifying reimbursement pressures and expected Medicaid headwinds are forcing management teams to rethink how best to allocate capital. Against this backdrop, energy infrastructure has emerged as a surprising strategic lever — one that can reduce enterprise level costs, unlock funding for deferred maintenance, and preserve opportunistic capital for clinical priorities.
In this audiocast, you’ll hear what energy-as-a-service (EaaS) is, how tax-exempt financing has fundamentally changed the economics of these partnerships, how cash flows move between health systems and their partners, the risks organizations need to understand before committing, and where the model is headed next — including its expansion beyond healthcare. The Novant Health transaction, the largest public tax-exempt EaaS deal to date at $855 million, is examined as a landmark case study.
If your organization is evaluating an energy-as-a-service partnership or you would like to discuss EaaS in greater detail, please reach out to Blake, Samadhi, or your RBC coverage team.
