CHILDREN’S HOSPITAL OF LOS ANGELES

1. Policy Statement

Supplier Diversity Policy Statement

Children's Hospital Los Angeles (CHLA) is committed to diversity, belonging, and health equity. The hospital aims to create a community and that fosters and supports an inclusive environment free of discrimination based on sex, age, race, color, religion, national origin, sexual orientation, gender identity, disability, veteran status, or any other characteristic protected by federal, state, and local law. CHLA values relationships with vendors that share CHLA’s mission, vision and values. As such, CHLA requires its vendors to prohibit discrimination based on any protected characteristic in accordance with applicable laws and encourages its vendors to promote antidiscrimination to support this important goal. Vendors may be required or asked to report their diversity spend to CHLA or provide other information requested by CHLA. CHLA will not tolerate or condone harassment, discrimination, or retaliation. Vendors shall create and foster a work environment where employees and business partners feel valued and respected. All verbal, visual, or physical abuse that creates or fosters intimidation or a hostile work environment is strictly prohibited, and removal will be enforced.

2. Goals and Timetables

Please describe your hospital's short-term goals and timetables, but not quotas, for increasing procurement from women, minority, LGBT, and disabled veteran business enterprises

CHLA will continue to advance initiatives that are in alignment with the various goals and initiatives throughout the hospital in accordance with local, state and federal laws and regulations.

Please describe your hospital's long-term goals and timetables, but not quotas, for increasing procurement from women, minority, LGBT, and disabled veteran business enterprises

CHLA will maintain its commitment to sourcing from local, diverse, and minority suppliers when such opportunities are mutually beneficial.

3. Outreach and Communication

Please describe the methods in which the hospital encourages and seeks out both prime and subcontract suppliers from women, minority, LGBT, and disabled veteran business enterprises to become potential suppliers

CHLA seeks out prime and subcontract suppliers through attending events both locally and nationally. The networking events provide opportunities for both the hospital and suppliers to meet and make meaningful connections. Through these events, CHLA has onboarded and utilized three diverse suppliers. Vizient (GPO) contracts are another way CHLA seeks out and encourages diverse suppliers. Vizient validates and vets suppliers who provide best pricing and will identify diversity statuses, however, CHLA does not discriminate or provide advantages based on any identified classifications.

Please describe the methods in which the hospital encourages its employees involved in procurement to seek out women, minority, LGBT, and disabled veteran business enterprises to become potential suppliers

Collaborating with sustainability efforts, cost-saving initiatives, distribution services, and other relevant areas enhances the purpose and effectiveness of our supplier diversity initiative. When cross-discipline initiatives are fully implemented, an internal article is published, detailing the supplier diversity initiative in partnership with other areas to continue the conversation and create togetherness within the organization. An internal Supplier Diversity policy was also approved this year, and it encourages the organization to be aware of the diverse businesses in the community.

Please describe the methods in which the hospital conducts outreach and communication to women, minority, LGBT, and disabled veteran business enterprises

Outreach and communication are done through various outlets, which include, but are not limited to events, conferences and references. Last year, CHLA hosted a Supplier Diversity Event with the Hospital Association of Southern California (HASC) where over 50 suppliers and hospital members attended to connect. In addition, CHLA participates in HASC's Annual Supplier Diversity Day along with local supplier diversity events that other hospitals host.

4. Support and Supplier Resolutions

Please describe the methods in which your hospital supports, partners with, or interacts with organizations and other entities in the procurement ecosystem that promote, certify, or contract with women, minority, LGBT, and disabled veteran business enterprises

CHLA does not currently maintain direct partnerships with certifying or contracting agencies; however, these agencies are encouraged to be resources. The Hospital Association of Southern California (HASC) and Communities Lifting Communities (CLC) have been significant partners in the supplier diversity initiative. Through these partnerships, CHLA has been able to conduct a successful networking event for hospitals and suppliers. A supplier diversity committee was also established and CHLA was appointed to be one of the co-chair. Nationally, CHLA has a seat on the Responsible Sourcing Committee at Vizient Inc. In addition, CHLA serves as an active member on the Children's Hospitals Supplier Diversity Coalition, a group established by a group of children's hospitals and are not affiliated with any one organization. The Coalition strives to share best practices, resources, and work through solutions together.

Please describe the methods in which your hospital resolves any issues that may limit or impede an enterprise from becoming a supplier

Issues are taken case-by-case and are resolved internally with the procurement, distribution teams and stakeholders. Solutions are explored to reflect the needs of CHLA.

5. Diversity Commission Recommendations and Planned Implementations

Please describe the past implementation of relevant recommendations made by the Hospital Supplier Diversity Commission

Past implementation of relevant recommendations included: 1. A supplier diversity policy was created 5. Develop and implement an inclusion policy 7. A supplier diversity webpage was developed with resources for vendors 8. Prime vendors provided Tier II spend 10. New diverse/minority vendors are tracked internally as part of the process to add new vendors to the system. Tracking diversity statuses is intended solely for monitoring the participation of diverse vendors and is not the sole criterion for decision-making.

Please describe the planned implementation of relevant recommendations made by the Hospital Supplier Diversity Commission

Planned implementation of relevant recommendations include: 2. Outreach will continue to remain a priority in efforts to connect with new vendors 5. The internal policy will continue to be in effect 8. Prime vendors will continue to provide Tier II spend 10. New diverse/minority vendors will continue to be tracked. Tracking diversity statuses is intended solely for monitoring the participation of diverse vendors and is not the sole criterion for decision-making. 12. Certification will continue to be encouraged, but not required by CHLA

6. Procurement Process and Certification

Please describe your hospital's procurement process

1. Request for approval by the Enterprise Value Analysis committee 2. Trial period 3. Enterprise Value Analysis committee re-approval 4. Supplier onboarding 5. Contracting 6. Supplies/services purchased and maintained

Website Link(s)

https://www.chla.org/

Do you require suppliers to be certified?

No

Do you accept self-certification

No

7. Diverse Supplier Spending

Diverse Procurement Spending by Minority

For the reporting period, enter the dollar amounts procured by your hospital from those business enterprises that employ the majority of their workforce in California.

Diverse Procurement Spending by Other

For the reporting period, enter the dollar amounts procured by your hospital from those business enterprises that employ the majority of their workforce in California.

What is your hospital's total procurement (including diverse and non-diverse suppliers)?

$855,066,956

Procurement means the purchase or lease of supplies, services, equipment, and capital expenditures related to buildings and fixed equipment during the previous calendar year. Procurement does not include items such as employee salaries and wages, fixed asset depreciation, amortization, or taxes.

8. Supplier Point of Contact

Enter the contact information for the individual that business enterprises who are interested in contracting with your facility can reach out to.

Name: Audrey Chang

Enter the contact information for the individual of the diverse business outreach liaison of your hospital.

Name: Audrey Chang

Hospital Contacts for Diverse Business Enterprises are available upon request. Please send request via email to supplier.diversity@hcai.ca.gov

9. Third Party Procurement

Third Party Procurement

• Vizient Inc.
• vizientinc.com

10. Other Relevant Information

We accept both direct and indirect spend from our prime suppliers. To the extent possible and best efforts, this may include spend with suppliers who have a majority of the workforce in California.

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