Hospital Supplier Diversity Plans

1. Policy Statement

Supplier Diversity Policy Statement

The Impact Spending Department is committed to expanding economic opportunity by increasing engagement with qualified small, local, and mission-aligned businesses across Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals (KFHP/H). We partner with procurement teams and existing suppliers to foster growth through both Tier I and Tier II procurement opportunities, helping strengthen the communities we serve while ensuring supplier selections continue to meet Kaiser Permanente's standards for quality, service, and best overall value.

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

In 2025, the Impact Spending Team evolved its program strategy to place greater emphasis on expanding opportunities for qualified small and local businesses. In the near term, we are collaborating with procurement teams, internal markets, existing suppliers, and external organizations that share this commitment to broaden supplier participation, strengthen community partnerships, and increase local economic impact. As this transition continues, we remain focused on embedding these priorities into our business practices while ensuring procurement decisions align with Kaiser Permanente's operational and strategic objectives.

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

The long-term objective is to further integrate qualified small and local businesses into Kaiser Permanente's procurement strategy through continued collaboration with internal markets, suppliers, and community partners. Following the strategic transition in 2025, 2026 represents the first full year under the new program with established performance goals of directing $6.8 billion in spend to qualified small business enterprises or achieving 30% of total spend with qualified small business enterprises. We will continue to build on these goals in the years ahead to expand economic opportunity and strengthen the communities we serve.

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

Kaiser Permanente encourages qualified small, local, and mission-aligned businesses to register in the Impact Spending Supplier Portal at supplier.kp.org/impactspending. Registration enables procurement teams and business stakeholders to identify potential suppliers for sourcing opportunities and helps businesses remain visible for future consideration. Suppliers are encouraged to keep their company profile current and update their registration annually.

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

Employees with contracting and sourcing responsibilities are encouraged to: 1) Incorporate qualified small, local, and mission-aligned businesses into sourcing and contracting activities whenever opportunities exist. 2) Partner with Impact Spending to identify qualified suppliers for upcoming sourcing initiatives and purchasing needs. 3) Evaluate referrals from Impact Spending in a timely manner and provide feedback on sourcing outcomes. 4) Continue to develop relationships with high-performing small and local businesses to support long-term growth and community impact. 5) Participate in Impact Spending education and training to support Kaiser Permanente's small and local business strategy and community impact objectives.

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

Outreach efforts to identify and engage qualified small and local businesses include, but are not limited to, the following: 1) Maintain memberships and collaborate with organizations that support small businesses, veteran-owned businesses, local chambers of commerce, economic development organizations, and other business associations aligned with Kaiser Permanente's community impact goals. 2) Participate in and support trade shows, networking events, educational forums, and conferences that connect Kaiser Permanente with qualified small and local businesses. 3) Leverage partnerships with business organizations, chambers of commerce, industry associations, and supplier networks to identify potential suppliers and maintain resources that support sourcing opportunities across Kaiser Permanente.

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

Kaiser Permanente supports supplier development by encouraging qualified small businesses to obtain appropriate business certifications and registrations that enhance visibility and access to contracting opportunities. We subscribe and leverage information with organizations such as the U.S. Small Business Administration (SBA), Dun & Bradstreet, the National Veteran Business Development Council (NVBDC), the Maryland Department of Transportation (MDOT) in the Mid-Atlantic region, and other national and regional organizations that support small business growth and supplier engagement.

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

Kaiser Permanente is committed to reducing barriers that may limit qualified small and local businesses from participating in our procurement process. We strategically engage with suppliers to better understand their challenges, provide guidance where appropriate, and collaborate with internal stakeholders and external partners to improve access to education, capital and ultimately contracting opportunities. While maintaining our standards for operational excellence, compliance, and responsible sourcing, we are committed to fostering long-term supplier development and strengthening the communities we serve.

5. Diversity Commission Recommendations and Planned Implementations

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

Kaiser Permanente has implemented program recommendations by partnering with internal markets and business stakeholders to align procurement practices with the Impact Spending strategy. Since the program's transition in 2025, efforts have been focused on expanding engagement with qualified small and local businesses, strengthening community partnerships, and integrating these priorities into procurement planning and supplier outreach activities.

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

Kaiser Permanente will continue to implement the Impact Spending strategy by expanding engagement with qualified small and local businesses through collaboration with internal markets, suppliers, and community partners. Planned initiatives include strengthening supplier outreach, enhancing data and performance reporting, increasing stakeholder engagement, and identifying new opportunities to integrate small and local business participation into procurement activities across the organization.

6. Procurement Process and Certification

Please describe your hospital's procurement process

Kaiser Permanente's procurement process combines a centralized enterprise sourcing model with regional and local purchasing to meet the unique needs of the communities we serve. While many contracts are strategically negotiated at the national level to achieve consistency, operational excellence, and value, regional and local procurement remains an important component of our sourcing strategy. Through collaboration with procurement teams, internal markets, and suppliers, Impact Spending works to expand opportunities for qualified small and local businesses while supporting community economic growth and advancing Kaiser Permanente's mission to improve the health of our members and the communities we serve.

Website Link(s)

https://supplier.kp.org/impactspending/what-we-do/supplier-development/

Do you require suppliers to be certified?

No

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)?

$112,202,795

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: Ernie Flores

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

Name: Impact Spending

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
• https://www.vizientinc.com/

10. Other Relevant Information

No

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