COMMUNITY MEMORIAL HOSPITAL – OJAI

1. Policy Statement

Supplier Diversity Policy Statement

Purchasing Supplier Diversity Policy PURPOSE: The purpose of this policy is to formalize Community Memorial Health System’s commitment to supplier diversity by promoting equitable access to procurement opportunities for qualified diverse suppliers. This policy supports compliance with applicable federal requirements and California Assembly Bill 1392, which expands the Hospital Supplier Diversity Program and emphasizes transparency, planning, and measurable efforts to increase procurement from diverse business enterprises, while maintaining quality, value, and operational efficiency. POLICY: It is the policy of Community Memorial Health System (“CMHS”) to promote supplier diversity by providing qualified diverse business enterprises equitable opportunity to compete for procurement and contracting opportunities. In accordance with applicable federal requirements and California Assembly Bill 1392, CMHS shall maintain a transparent, data-driven supplier diversity program that supports documented plans, measurable progress, and accountability for increasing procurement from diverse suppliers while ensuring all sourcing decisions are based on best value, quality, service, regulatory compliance, and patient care considerations. CMHS is not obligated to select a diverse supplier if business requirements cannot be met. SCOPE: This policy applies to all CMHS employees, contractors, and affiliates engaged in sourcing, contracting, purchasing, value analysis, or supplier management activities across all CMHS facilities and subsidiaries. DEFINITIONS: Diverse Supplier: A business that is at least 51% owned, operated, and controlled by one or more individuals from a recognized diverse classification, including but not limited to: Small Business Small Disadvantaged Business Minority-Owned Business Enterprise (MBE) Women-Owned Business Enterprise (WBE) Veteran-Owned Small Business (VOSB) Service-Disabled Veteran-Owned Small Business (SDVOSB) HUBZone Small Business LGBTQ+-Owned Business Certification: Formal validation of supplier diversity status issued by recognized federal, state, or third-party certifying agencies. Supplier Diversity Program: CMHS’s structured approach to identifying, tracking, reporting, and improving participation of diverse suppliers in purchasing and contracting activities. PROCEDURE: A. Supplier Identification and Sourcing Employees with sourcing or contracting responsibilities shall conduct reasonable and documented searches for qualified diverse suppliers for applicable purchasing and contracting opportunities. Approved tools and platforms shall be used to identify diverse suppliers, including but not limited to: Vizient Captis SupplierGateway Other approved supplier diversity databases B. Integration into Contracting and Purchasing Diverse suppliers shall be considered during all applicable phases of the contracting and purchasing lifecycle, including: Request for Proposal (RFP) Request for Quotation (RFQ) Value Analysis Contract renewals and sourcing events New product requests Materials Management shall collaborate with internal stakeholders and group purchasing organizations to identify opportunities to enhance diverse supplier participation where clinically and financially appropriate. C. Federal and State Compliance CMHS shall comply with applicable federal subcontracting plan requirements and California HCAI hospital supplier diversity reporting obligations. Annual supplier diversity performance shall be reviewed to ensure alignment with established goals and reporting standards. D. Supplier Development CMHS shall continue to utilize and support diverse suppliers that demonstrate strong performance. Where feasible, CMHS may participate in outreach, education, and development efforts to expand the availability of qualified diverse suppliers. DOCUMENTATION: A. Metrics and Data Tracking Supplier diversity metrics shall be documented and maintained through approved purchasing and supplier management systems, including: Vizient purchasing catalogs and reporting tools Captis contract and item master data SupplierGateway diversity certification records Tracked data may include: Supplier diversity classification Spend by supplier category Contract participation Certification status and expiration dates B. Outreach and Engagement Records Documentation of outreach efforts, supplier engagement activities, and community partnerships shall be retained by Materials Management as applicable. C. Reporting Supplier diversity data shall be maintained in a manner that supports internal review, leadership reporting, and external regulatory or HCAI reporting requirements.

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

Community Memorial Health System (CMHS) is committed to accelerating supplier diversity through targeted education, active regional engagement, and workflow integration. Our short-term goals and timetables include: Staff Education & Capacity Building: Participating in supplier diversity roundtables hosted by Communities Lifting Communities (CLC) and the Hospital Association of Southern California (HASC) twice a year to strengthen staff knowledge and capacity. Regional Collaboration: Joining and continuing participation in the quarterly Hospital Supplier Diversity Committee meetings hosted by CLC and HASC to stay informed of regional strategies, share emerging best practices, and foster shared accountability. Peer Mentorship: Engaging in monthly peer mentorship groups through the Hospital Supplier Diversity Committee to support program development, both by serving as a mentor to other hospitals and strengthening our own internal capacity. Market Outreach: Attending the annual supplier diversity in health care conference in October 2025 to expand relationships with certified diverse vendors and increase our visibility as an inclusive, accessible contracting partner. Process Integration (Pilot): Piloting the use of the Health Care Inclusive Procurement List within our procurement team workflows in 2025 to encourage proactive outreach to certified diverse vendors for upcoming contract opportunities. This pilot aims to embed inclusive sourcing practices into day-to-day operations and expand access to underutilized but qualified vendo

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

CMHS’s long-term strategy focuses on sustainable economic impact, expanding the diverse supplier ecosystem, and ensuring equitable procurement. Our long-term goals include: Supplier Capacity Building: Actively participating in future regional initiatives led by CLC and HASC to provide technical assistance and capacity-building support to diverse businesses, thereby increasing the number of businesses capable of meeting hospital contracting needs. Strategic Regional Ecosystems: Participating in the upcoming Southern California Regional Impact Purchasing Collaborative and committing to being an active part of a cross-sector ecosystem. This initiative connects the healthcare industry directly with economic development organizations supporting diverse vendors. Inclusive Economic Growth: Contributing to long-term regional strategies that uplift, train, and connect diverse businesses with meaningful procurement opportunities. This sustained collaboration will advance both 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 (CMHS) integrates supplier diversity directly into our Supply Chain Management (SCM) strategy. To ensure diverse business enterprises have equitable opportunities for both prime and subcontracting roles, we mandate reasonable and documented searches for qualified diverse suppliers during all applicable purchasing opportunities. Our procurement teams utilize advanced sourcing platforms, including Vizient, Captis, and SupplierGateway, to identify certified diverse vendors. Furthermore, diverse suppliers are actively considered during key phases of the contracting lifecycle, including Requests for Proposal (RFPs), Requests for Quotation (RFQs), Value Analysis, and new product requests. To ensure compliance at all levels, we also maintain a Federal Subcontracting Plan to provide equal opportunity for diverse businesses to compete for subcontracts.

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 enforces supplier diversity not as a suggestion, but as a formalized policy mandate across our procurement operations. Employees with sourcing or contracting responsibilities are explicitly required to conduct searches for diverse suppliers using approved databases. To operationalize this and reduce friction for our staff, we are collaborating with our GPO, Vizient, and Captis to improve catalog visibility, allowing our team to quickly identify diverse vendors at the point of decision. We are also implementing a process to capture and track diversity data directly within our ERP system. To drive proactive engagement, we are piloting the Health Care Inclusive Procurement List with our procurement team to embed inclusive sourcing into day-to-day workflows and encourage proactive outreach for upcoming contract opportunities.

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

CMHS recognizes that active community engagement is integral to our outreach strategy. We directly communicate with diverse business enterprises through regional presence and strategic partnerships. Our leadership actively participates in supplier diversity roundtables and committee meetings hosted by Communities Lifting Communities (CLC) and the Hospital Association of Southern California (HASC) to align with regional strategies. We also attend the annual supplier diversity in health care conference to build relationships directly with certified diverse vendors and increase our visibility as an accessible contracting partner. Furthermore, CMHS is committing to the Southern California Regional Impact Purchasing Collaborative, a cross-sector ecosystem that connects the healthcare industry with economic development organizations to train, support, and communicate opportunities to diverse suppliers. All formal outreach efforts and community partnerships are systematically documented by Materials Management.

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) actively partners with key entities across the procurement ecosystem to elevate and integrate diverse suppliers. We leverage our primary group purchasing organization, Vizient, and our regional coalition, Captis, to promote diverse spend and embed certified vendors directly into our sourcing catalogs. Beyond our GPO networks, we maintain strong strategic relationships with regional advocacy and economic development organizations. CMHS actively participates in supplier diversity committees, roundtables, and capacity-building initiatives led by Communities Lifting Communities (CLC) and the Hospital Association of Southern California (HASC). Furthermore, we are committing to the Southern California Regional Impact Purchasing Collaborative to align our healthcare contracting power with regional economic development efforts. To maintain the integrity of our program, we utilize SupplierGateway to accurately track and validate diverse supplier certifications.

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

To ensure swift, transparent, and equitable resolution of any supplier concerns, CMHS has established a direct, executive-level escalation pathway. Any issues, inquiries, or grievances related to supplier diversity, contracting access, or procurement processes are escalated directly to the Director of Materials Management for immediate review and resolution. This ensures that diverse suppliers have a dedicated, high-level advocate within the organization to clear bottlenecks and maintain fair access to all CMHS contracting opportunities.

5. Diversity Commission Recommendations and Planned Implementations

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

Historically, Community Memorial Health System (CMHS) has operated at a baseline level regarding the formal implementation of Hospital Supplier Diversity Commission recommendations, and current historical data is not applicable. However, rather than viewing this as a deficit, CMHS has utilized this operational period to conduct a comprehensive audit of our procurement infrastructure. We have established the necessary foundational policies, data tracking capabilities, and executive accountability frameworks required to ensure that future commission recommendations are not just reviewed, but systematically operationalized within our supply chain

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

CMHS is executing a targeted, data-driven plan to implement Commission recommendations by embedding diversity directly into our core procurement engines. We are actively partnering with our primary group purchasing organization, Vizient, and our regional coalition, Captis, to aggressively promote diverse spend across the enterprise. A critical component of this rollout is optimizing our enterprise vendor catalogs to allow sourcing teams to instantly identify certified diverse vendors at the point of decision. Furthermore, we are systematically reviewing all contracted spend categories to identify strategic entry points where a diverse supplier can be elevated to a primary or secondary option. This ensures that our planned implementation is not merely aspirational, but hardwired into our daily value analysis and category management workflows.

6. Procurement Process and Certification

Please describe your hospital's procurement process

Community Memorial Health System (CMHS) operates a highly structured, clinically integrated procurement process designed to maximize value, ensure clinical efficacy, and promote equitable supplier access. Our process is built on the following core pillars: National and Coalition Sourcing: Procurement is driven at the national level utilizing Vizient as our primary group purchasing organization (GPO). Additionally, CMHS leverages national scale as a participating member of Captis, a group purchasing coalition chaired by the Mayo Clinic, which drives our advanced sourcing, contracting, and value analysis initiatives. Executive-Led Value Analysis: All new product requests are rigorously reviewed at both the item-level and the broader product-spend-category level. This evaluation is conducted by the hospital Supply Chain and Value Analysis teams, both of which are chaired by the Director of Materials Management. Data-Driven Vetting: Every requested item undergoes strict review for contracted status, pricing verification, reimbursement viability, and clinical outcome performance metrics. This data-driven vetting process is facilitated by our new product screening tool, Symplr Spend. Clinical Justification and Value Alignment: To introduce any new product into the CMHS ecosystem, explicit physician and clinical justification is required. Final procurement decisions heavily weigh our commitments to existing agreements, proven product validity, and overall value propositions. Equitable Supplier Review: To ensure our procurement ecosystem remains competitive and inclusive, all suppliers are reviewed during this process, regardless of their current active or contracted status.

Website Link(s)

http://www.mycmh.org

Do you require suppliers to be certified?

Yes

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)?

$3,877,879

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, Inc
• vizientinc.com

Looking for Related Reports?

• Hospital Profile
• Hospital Fair Billing Policies