USC VERDUGO HILLS HOSPITAL

1. Policy Statement

Supplier Diversity Policy Statement

Keck Medicine of USC - DEI Vision At Keck Medicine of USC quality healthcare starts with dignity, respect, and compassion for our patients, loved ones and colleagues. We intentionally and courageously create an inclusive and supportive clinical care, learning, research, and work environment. We actively work to dismantle systemic bias, racism, and inequalities so everyone belongs and thrives. Keck Medicine of USC - Supplier Diversity Policy At Keck Medicine of USC, we believe in the impact of serving a community and population with diverse needs. To assist patients and providers in becoming Limitless™, we strive to partner with vendors that demonstrate excellence while reflecting the breadth of patients we serve. Our supplier diversity commitment is to provide equitable access to procurement and contracting opportunities to diverse business entities - both large and small - 51% owned and operated by minority, women, LGBTQ+, and veterans. Our goal is centered on broadening mutually beneficial partnerships with diverse suppliers while also strengthening the economic well-being of the communities that we serve and in turn contributing to healthier communities.

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

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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

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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

At Keck Medicine of USC and the University of Southern California, we actively seek to work with minority, women, LGBTQ+, disabled, veteran-owned, and other diverse business enterprises in compliance with all laws and regulations. Here’s how we encourage and engage these businesses to become potential suppliers: Dedicated Supplier Portal for Certification: At Keck Medicine of USC, we utilize the Supplier Gateway portal for suppliers to register and certify their business. This platform is specifically designed to include diverse categories such as minority-, woman-, LGBTQ+, and Veteran-Owned Enterprises, and Small Businesses in compliance with AB962. By registering through Supplier Gateway, businesses gain visibility not only within Keck Medicine of USC’s procurement system but also access to other major health systems that use this tool. This broadens their market reach and potential business opportunities. Our university partner, the Office of Business Opportunity, has also utilized their website platform to provide an intake process for possible suppliers. In addition to the in-person outreach they conduct that’s outlined below, the intake form allows the University, and by extension Keck Medicine of USC, to consider possible suppliers. Active Sourcing for Diverse Suppliers: Our Supplier Gateway is central to our strategy for identifying and integrating diverse suppliers into our supply chain. When new opportunities arise or during spend consolidation projects, we prioritize sourcing from certified diverse vendors to ensure inclusivity in our procurement processes. We have also established increased vendor visibility. Since our last report we have fully onboarded USC Arcadia Hospital and are able to see where there are opportunities for spend to cross over from one entity/hospital to others within the System. Collaboration with Group Purchasing Organizations: We collaborate with the Group Purchasing Organization (GPO) Vizient and our primary distributor Medline to source and report on diverse suppliers. Through Vizient’s supplier diversity portal, we benchmark our diverse supplier spend on a quarterly basis, ensuring consistent support and growth of diverse business participation. Enhanced Visibility and Impact Reporting: Medline’s comprehensive reporting tools enable us to assess not only our direct spend (Tier 1) with diverse suppliers but also the broader impact of our vendors’ sourcing practices (Tier 2). This dual-level analysis allows us to support a more inclusive supply chain and recognize the contributions of diverse suppliers comprehensively. By including the Tier 2 spend we also incentivize suppliers to conduct their own supplier diversity programs and reward those with more mature diversity landscapes. Commitment to Inclusive Procurement: Our approach is rooted in a commitment to fostering an inclusive supply chain. By creating these platforms and collaborations, we aim to build a diverse vendor community, providing equitable opportunities and fostering economic growth among minority, women, LGBTQ+, and disabled veteran business enterprises.

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

At Keck Medicine of USC, our approach to encouraging procurement employees to actively seek out and engage with minority, women, LGBT, and disabled veteran business enterprises involves a comprehensive and continuous training strategy. Annually, our procurement team undergoes training on current and anticipated legislative requirements related to diversity reporting, classifications, and the utilization of tools provided by our Group Purchasing Organization (GPO), primary distributor, and Supplier Gateway. To enhance their expertise, employees focused on supplier diversity receive additional training that includes collaboration with top health systems like RUSH University Medical Center, PIH, and Cedars-Sinai, as well as with government agencies such as the Health Care Access and Information (HCAI) office. This advanced training covers strategies to increase supplier diversity across our Health System and emphasizes the positive impacts of working with diverse suppliers in our local community. Our executive team is also trained on both current AB962 reporting requirements and the forthcoming AB1392 requirements. Under the guidance of the Chief Health Equity and Diversity & Inclusion Officer, Shannon Bradley, we’ve established dedicated working groups for all significant Diversity, Equity, and Inclusion (DEI) efforts, including supplier diversity. This structure fosters collaboration between various DEI initiatives and ensures executive engagement, with participation from our system CFO and entity CEOs in the supplier diversity working group, thus boosting visibility and commitment to these efforts. Moreover, Keck Medicine of USC has partnered with the University of Southern California to enhance our supplier management infrastructure, aligning with the evolving needs of a robust Supplier Diversity program. This includes working with the University’s new Office of Business Opportunity in University Relations’ Civic Engagement and Economic Partnerships department, led by Dr. Michele Turner and Effie Turnbull Sanders, and collaborating with the University’s Office of Diversity, Equity, and our own Office of Diversity and Inclusion, directed by Shannon Bradley. In our ongoing Journey Towards Inclusion, we have implemented trainings for employees on implicit bias and its impact on recruiting and retaining a diverse workforce. Additionally, we support Employee Resource Groups (ERGs) that foster a culture celebrating differences and promoting diverse perspectives, ensuring equal opportunities for growth and success. In 2023, our ERGs saw a 77% increase in participation, driven by leadership and events that highlight various cultural and identity celebrations. All Keck Medicine of USC hospitals are recognized as a Leader in LGBTQ+ Healthcare by the Healthcare Equality Index, one of only 384 healthcare facilities in the country. Keck Medicine of USC is also working closely with community groups like Fair360 to review our Equity policy and with HCAI on our hospital equity measures program, reinforcing our commitment to a culture of inclusion and diversity.

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

At Keck Medicine of USC, our outreach and communication strategy to minority, women, LGBT, and disabled veteran business enterprises is multifaceted and highly collaborative. The approach includes: Shared Supplier List: We have developed a comprehensive list of more than 3,000 hospital-ready diverse suppliers in partnership with regional healthcare systems and the Hospital Association of Southern California (HASC). This list, searchable by category, is managed by HASC and made available to both our institution and smaller regional hospitals. It serves as a crucial resource for identifying and engaging with potential diverse suppliers. Annual Business Summit: Our Annual Business Summit, held in March 2023, is a cornerstone event for engaging with prospective suppliers. During this summit, our sourcing teams participate in roundtable discussions and “vendor speed interviews” with diverse suppliers. This format facilitates two-way communication, allowing vendors to pitch their products or services while receiving direct feedback from our executives on our procurement requirements. Insights gathered from the Supplier Interest Forms at these events are used to inform future outreach efforts. SupplierGATEWAY Partnership: Partnering with SupplierGATEWAY, we’ve enhanced our understanding of our current supplier landscape and identified opportunities for growth in various categories. This platform helps us ensure that our vendors hold current accredited certifications and are accurately reflected in our system. In the initial onboarding phase, we reached out to vendors across our Health System, including those affiliated with USC Arcadia Hospital, to update or obtain their certifications, guiding them towards accreditation resources as needed. Supplier Diversity Summit: We actively participate in supplier diversity summits in collaboration with the Office of Business Opportunity (OBO). These summits bring local diverse vendors on-site, providing them with an opportunity to learn about our supplier diversity initiatives and requirements. The events feature presentations and culminate in matchmaking sessions where our team and other University departments discuss potential opportunities directly with suppliers. This approach strengthens ties with local business enterprises and aligns our efforts with broader University initiatives. DEI Councils: Both the Health System and the University have established Diversity, Equity, and Inclusion (DEI) Councils. These councils are dedicated to developing the infrastructure needed to foster a diverse and inclusive workforce, advance equity in care, and enhance community and professional partnerships, including those related to supplier diversity. The councils focus on areas such as Employee Resource Groups, Workforce Engagement, Culture of Inclusion, Community and Professional Partnerships, and Health Equity efforts. By combining these strategies, Keck Medicine of USC is working to expand support and engagements with minority, women, LGBT, and disabled veteran business enterprises, ensuring their integration into our supplier network and fostering a diverse and inclusive procurement ecosystem.

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

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

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5. Diversity Commission Recommendations and Planned Implementations

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

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

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6. Procurement Process and Certification

Please describe your hospital's procurement process

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Website Link(s)

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Do you require suppliers to be certified?

1

Do you accept self-certification

1

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)?

$72,555,827

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: Joseph Knudsvig; Elinor Niguse; Michèle Turner

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

Name: --

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

None.

10. Other Relevant Information

Verdugo Hills Hospital is proud to have done business with 9 Minority-Owned, 25 Women-Owned, and 9 Veteran-Owned businesses in 2023.

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