Governor Signs Bill to Promote Supplier Diversity Across California’s Hospital Industry
AB 962 Requires Hospitals to Report Their Supplier Diversity Starting July 1, 2021
Over the weekend, Gov. Gavin Newsom signed AB 962, introduced by Assemblymember Autumn Burke (D-Inglewood) and coauthored by Assemblymember Rob Bonta (D-Oakland). This bill establishes California’s first-ever reporting requirement for hospitals’ contracting with businesses owned by people of color, women, veterans, and LGBT individuals to the Office of Statewide Health Planning and Development. This bill will shed light on the degree to which California’s $230 billion hospital sector contracts with and outreaches to diverse businesses for various products and services.
“AB 962 is the embodiment of some of the values that are at the core of our state: transparency, economic opportunity, and diversity,” said Assemblymember Burke. “The signing of this measure furthers California’s storied history of promoting opportunity for the communities that comprise the backbone of our economy, and shows that we value diversity across all levels of this state, whether it is in the hospital industry, utility industry, or in the makeup of the legislature. Continuing this history of promoting diversity is crucial because when our diverse communities thrive, all Californians thrive.”
“AB 962 introduces a proven formula to increase diversity,” said Greenlining Institute Health Equity Director Anthony Galace. “Requiring hospitals to report their supplier diversity will lead to significant contracting opportunities for diverse businesses, which will directly benefit the populations and communities those businesses serve. We applaud Assemblymember Burke’s leadership on this important issue and look forward to working with hospitals across the state, and with OSHPD to ensure proper implementation of this bill.”
This bill, sponsored by The Greenlining Institute, is modeled on several successful supplier diversity programs overseen by the California Public Utilities Commission and the California Department of Insurance. After both programs were enacted, the number of contracts going to diverse businesses skyrocketed, and advocates credit the reporting and transparency requirements created by these programs. They anticipate similar results from AB 962.
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