COMMUNITY MEMORIAL HOSPITAL-SAN BUENAVENTURA

1. Policy Statement

Supplier Diversity Policy Statement

Page 1 of 2 POLICY TITLE: NATIONAL SUPPLIER DIVERSITY APPLIES TO: x CMH x OVCH x CCC x AM Department: Materials Management Control Number: Board Approval Date: PURPOSE: This policy outlines the requirements to provide small, disadvantaged women-owned small businesses, veteran-owned small businesses, small businesses, service-disabled veteran-owned small businesses, HUBZone small business, and other diverse supplier’s equal opportunity to compete for CMHS subcontracts and provides the guidelines for diverse supplier participation in all CMHS’s purchases. The policy also outlines the sourcing requirements in accordance with Federal subcontracting plan commitments. POLICY: It is CMHS’s policy to prefer to use a qualified diverse supplier whenever one is both available and able to meet CMHS’s business terms and conditions at a competitive price. CMHS is not obligated to use as diverse supplier over others when they are not able to meet the business requirements including pricing. SCOPE: This policy applies to all employees who are employed by the following entities (collectively referred to as “CMHS”) (CMHS) and their subsidiaries. PROVISIONS: Federal Subcontracting Program: CMHS is required to comply with federal laws established to provide equal opportunity for small, small disadvantaged, women-owned small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone small business to compete for subcontracts. The Federal Subcontracting Plan is published on the NSD website. GOALS: The Federal Subcontracting Plan establishes annual goals, for the use of small, small disadvantaged, women-owned small businesses, veteran-owned small businesses, and HUBZone small businesses in each region. Authorized contracting groups should make every possible effort to meet the federal subcontracting goals by purchasing from these diverse suppliers. Supplier Diversity Strategies: Employees with contracting/sourcing responsibilities are required to: Conduct a thorough search using available tools to identify diverse suppliers for every applicable contracting and purchasing opportunity. Integrate diverse suppliers in all phases of the contracting/purchasing process and collaborate with NSD to define strategies to promote/enhance diverse supplier participation where opportunities exist. Continue to utilize and develop diverse suppliers who perform well DOCUMENTATION: (Optional- List where key items addressed in policy must be documented)

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

Strengthen staff knowledge and capacity by participating in supplier diversity roundtables hosted by Communities Lifting Communities and the Hospital Association of Southern California twice a year. Join/continue to participate in the quarterly Hospital Supplier Diversity Committee meetings hosted by Communities Lifting Communities and the Hospital Association of Southern California to stay informed of regional strategies, emerging best practices to engage diverse vendors, and policy updates, while fostering collaboration and shared accountability to advance equitable procurement across Southern California. Engage in the monthly peer mentorship group opportunity through the Hospital Supplier Diversity Committee, either by serving as a mentor to support hospitals building their programs or by joining a mentorship group to strengthen internal capacity and accelerate program development. Attend the annual supplier diversity in health care conference (Oct 2025) hosted by Communities Lifting Communities and the Hospital Association of Southern California to expand relationships with certified diverse vendors and increase the hospital’s visibility as an inclusive and accessible contracting partner. In 2025, Pilot the use of the Health Care Inclusive Procurement List with the hospital’s procurement team to encourage proactive outreach to certified diverse vendors for upcoming contract opportunities. This pilot aims to embed inclusive sourcing practices into day-to-day procurement workflows and expand access to underutilized but qualified vendors.

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

Participate in future regional initiatives led by Communities Lifting Communities and the Hospital Association of Southern California to provide technical assistance and capacity-building support to diverse businesses, increasing the number of businesses able to meet hospital contracting needs. Participate in the upcoming Southern California Regional Impact Purchasing Collaborative and commit to being an active part of a cross-sector ecosystem that connects the health care industry with economic development organizations supporting diverse vendors. Through this collaboration, the hospital will contribute to regional strategies that uplift, train, and connect diverse businesses with meaningful procurement opportunities, advancing inclusive economic growth and health equity.

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

Community Memorial Health System’s commitment is to make supplier diversity an integral part of our Supply Chain Management (SCM) strategy. CMHS looks to implement a purchasing policy for our hospital system that provides certified minority, women, service-disabled, veteran-owned, LGBTQ and small business enterprises the maximum opportunity to participate as suppliers of goods and services.

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

CMHS employees are expected to commit themselves to its implementation through integration into direct purchasing and distribution strategies. We are working with a third party to implement a process for capturing the diversity data within our ERP. We are also working with our GPO Vizient to develop a process / strategy for our team that will enable them to seek out potential suppliers to meet the diversity requirements. I also sit on our DEIB Committee for the health system.

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

Community resources are an integral part of CMHS outreach. We will work with identified community resources to get involved with certified minority, women, service-disabled, veteran-owned, LGBTQ and small business enterprises and contractors.

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

Community Memorial Health System (CMHS) supports and partners with key organizations in the supplier diversity space by leveraging relationships with Vizient and Captis to identify and promote certified diverse suppliers. These partnerships give us access to diversity classification tools and curated vendor lists that help integrate inclusive procurement practices into sourcing decisions. We also engage with Communities Lifting Communities and the Hospital Association of Southern California, participating in regional events and peer learning sessions that promote diverse supplier engagement. Additionally, I serve on the health system’s Diversity, Equity, Inclusion, and Belonging (DEIB) Committee, where I collaborate with leaders across departments to champion diversity initiatives both within and beyond the supply chain function.

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

CMHS is proactively addressing barriers for diverse suppliers through process improvement and systems alignment. We are working with Vizient and our ERP partner to better capture supplier diversity data and integrate it into our procurement workflows. We also plan to utilize the Health Care Inclusive Procurement List to support outreach and engagement with underutilized vendors. When challenges arise, we engage cross-functional teams—including supply chain, legal, and DEIB leaders—to resolve issues collaboratively and ensure equitable access to contracting opportunities. As a member of the DEIB Committee, I work alongside other system leaders to identify and remove institutional barriers that may affect diverse supplier participation.

5. Diversity Commission Recommendations and Planned Implementations

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

CMHS has adopted several strategies in line with past recommendations from the Hospital Supplier Diversity Commission. This includes active participation in supplier diversity roundtables, peer mentorship programs, and quarterly Hospital Supplier Diversity Committee meetings through Communities Lifting Communities and the Hospital Association of Southern California. These engagements have strengthened our awareness of inclusive procurement strategies and helped guide our internal program development. I also represent the supply chain on the CMHS DEIB Committee, where I help ensure that supplier diversity goals are aligned with broader system-wide equity efforts.

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

CMHS plans to continue building upon recommendations by increasing our internal tracking and use of certified diverse vendors through our GPO (Vizient) and supply chain systems. We are working to highlight diverse suppliers in our vendor catalog and identify high-impact categories where these vendors can be considered for primary or secondary sourcing. We also plan to participate in the upcoming Southern California Regional Impact Purchasing Collaborative to expand our reach and contribution to regional equity-focused procurement strategies. As part of my role on the DEIB Committee, I am actively involved in guiding and supporting these initiatives in partnership with other hospital leaders, ensuring that supplier diversity remains a shared and visible priority across the organization.

6. Procurement Process and Certification

Please describe your hospital's procurement process

Procurement is done at the national level with Vizient as our primary group purchasing organization (GPO). We are also part of a group purchasing coalation through Vizient as a participating member of Captis, which is mostly composed of hospitals in the midwestern United States and chaired by the Mayo Clinic for sourcing, contracting, and value analysis. New product requests are reviewed at the item-level and product spend category level by hosptial supply chain and value analysis team, both chaired by myself. All items are reviewed for contracted status, pricing verificaiton, reimbursement and clinical outcome performance metrics. This is facilitated by a new product screening tool called Symplr Spend. Physician and clinical justification is required to bring in a new product. Commitments to existing agreements, validating product validity and value propositions are all taken into consideration. All suppliers are reviewed, regardless of active status and contracted status.

Website Link(s)

https://www.mycmh.org/

Do you require suppliers to be certified?

Yes

Do you accept self-certification

Yes

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)?

$72,321,584

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: Michael Alfaro

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

Name: Michael Alfaro

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
• vizientinc.com

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