Hospital Supplier Diversity Reporting Program

Overview#

Health and Safety Code Section 1339.85-1339.87 requires the Department of Health Care Access and Information (HCAI) to develop and administer a Hospital Supplier Diversity Reporting Program to collect and post hospital supplier diversity reports explaining the hospital’s supplier diversity statement and procurement efforts regarding certified minority, women, lesbian, gay, bisexual, transgender (LGBT), and disabled veteran business enterprises.

Hospitals, with operating expenses over a specified amount, are required to annually submit a report to HCAI on their minority, women, LGBT, and disabled veteran business enterprise procurement efforts. HCAI is required to maintain a link on the HCAI website that provides access to the content of hospital supplier diversity reports to the public. All submitted hospitals and system/regional network reports can be downloaded from CalHHS Open Data Portal.

Individual Hospital Supplier Diversity Reports: Hospitals licensed under subdivision (a), (b), or (f) of Health and Safety Code section 1250, with operating expenses of fifty million dollars ($50,000,000) or more, and each licensed hospital with operating expenses of twenty-five million dollars ($25,000,000) or more that is part of a hospital system or regional network, shall submit a Hospital Supplier Diversity Report.

System/Regional -Level Hospital Supplier Diversity Report: Two or more hospitals owned, sponsored, or managed by the same organization may submit a System/Regional-Level Hospital Supplier Diversity Report if there are suppliers that provide services or goods to all hospitals within the hospital system or regional network.

Spend disclaimer: If $0 were spent on procurement for a category, hospitals were instructed to report $0. If the procurement data is not readily accessible, hospitals were instructed to leave the category blank. In addition, $0 or blank may be reported due to procurement data reported on hospital system/regional network’s report when the hospital’s procurement was performed at the hospital system/regional network level.

Submit Hospital Supplier Diversity Reports#

Hospital Supplier Diversity Reports must be submitted annually by July 1 in the report collection system, the Hospital Disclosures and Compliance (HDC) System. HCAI will no longer accept emailed or mailed hard copy reports. Report submitters should register through the HDC System. The instructions for creating an account and associating with a facility can be located in the HDC System and Hospital Supplier Diversity Report Resource Manual under the Additional Resources section below.

To submit a report, click the link below.

Request an Extension #

A hospital may request, a 30-day extension to file the report due to unintended or unforeseen delays in the Hospital Disclosures and Compliance System.

Late Submission #

Health and Safety Code Section 1339.87 authorizes HCAI to impose a civil penalty of one hundred dollars ($100) per day for failure to file a timely report.  Penalties imposed may be appealed pursuant to current appeals processes described in California Code of Regulations Sections 95009 – 95014.

Find Hospital Supplier Diversity Reports#

Submitted Hospital Supplier Diversity Reports and HCAI’s data summary can be accessed using the links below.

• 2021 Supplier Diversity Reports
• 2021 Supplier Diversity Data Summary
• 2020 Supplier Diversity Reports
• 2020 Supplier Diversity Data Summary

Additional Resources#

• Regulations for Hospital Supplier Diversity
• HDC System and Hospital Supplier Diversity Report Resource Manual
• Hospital Supplier Diversity FAQ’s
• Hospital Supplier Diversity Blank Individual Template
• Hospital Supplier Diversity Blank System/Regional Network Template
• Hospital Contacts for Diverse Suppliers
• Hospital Operating Expenses (The operating expenses are based on submitted Annual Financial Disclosure Reports for hospital fiscal years ended in 2021.)
• Find HCAI ID number by clicking on facility finder and search for hospital profile.

Upcoming Activities#

2023 – JANUARY TO MARCH#

• Convene Hospital Supplier Diversity Commission on March 21, 2023.

2023 – APRIL TO JUNE#

• No actives currently scheduled.

2023 – JULY TO SEPTEMBER#

• 2022 Hospital Supplier Diversity Reports due July 1, 2023.
• Finalize collection of 3^rd year hospital reports. 
• Convene Hospital Supplier Diversity Commission.

Hospital Supplier Diversity Commission (HSDC)#

As required by Health and Safety Code Section 1339.88, HCAI is responsible for convening a hospital supplier diversity commission comprised of the public and health care, diversity, and procurement stakeholders to advise HCAI and the hospital industry on best methods to increase procurement with diverse suppliers within the hospital industry and to promote and provide outreach to hospitals that are actively engaged in supplier diversity issues.

To learn more about the HSDC and upcoming activities click the button below.

HSDC First Year Recommendations Report#

The commission has been meeting regularly since March 2021 and during its meetings has reviewed baseline data from the first year Hospital Supplier Diversity Reports, heard from hospitals with more mature supplier diversity programs on some best practices in the hospital industry, and learned more about hospital procurement and supplier diversity. This report documents the 26 first-year recommendations developed by the Commission through discussion and public comments.

The HSDC developed these recommendations with the intention of promoting the use of diverse suppliers as well as encouraging healthy competition in health care and reflecting the position of an active role in government. The recommendations were finalized during a series of public meetings held between May 2022 and September 2022. This report also provides a summary of key items of discussion that the Commission raised during the development of the recommendations and a summary of the process undertaken to finalize the recommendations.

These 26 first-year recommendations include

• 12 recommendations for the hospital industry
• 7 recommendations for the HCAI director
• 7 recommendations for other relevant entities within the hospital procurement ecosystem including Group Purchasing Organizations (GPO), manufacturers and distributors, and business associations and chambers. 

Follow the hyperlink to review the HSDC First Year Recommendations Report.

Contact#

For all inquiries related to the Hospital Supplier Diversity Reporting Program, please contact us via email at supplier.diversity@hcai.ca.gov or via phone at (916) 326-3830. The Hospital Supplier Diversity inbox is supported Monday – Friday 8:00 a.m. to 5:00 p.m. PST, excluding State of California observed holidays.

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