Supplier Diversity in California Hospital Procurements, 2021-2023
The total diverse procurement spend by individual hospitals reported between 2021 and 2023 increased by approximately 25%, $534.8 million, while the ratio of total diverse procurement spend to total procurement spend increased by approximately one-tenth of a percent (0.1%).
Introduction
The Supplier Diversity in California Hospital Procurements presents data visualizations built from HCAI’s Hospital Supplier Diversity Reporting Program.
Hospitals licensed under subdivision (a), (b), or (f) of Health and Safety Code section 1250, “with operating expenses of fifty million dollars ($50,000,000) or more, and each licensed hospital with operating expenses of twenty-five million dollars ($25,000,000) or more that is part of a hospital system or regional network,” are required to annually submit a Hospital Supplier Diversity plan on its minority, women, LGBT, and disabled veteran business enterprise procurement efforts during the prior calendar year, to the extent that data is available. To learn more about this program, please visit the Hospital Supplier Diversity Reporting Program page.
The data presented in this product is derived from Individual Hospital Supplier Diversity Plans between 2021 and 2023.
The purpose of this visualization is to give data users an accessible and interactive view into California’s hospital procurement data for the previous three reporting periods. The data is displayed using charts and graphs that may be filtered by hospital name, hospital type, geography, and whether the hospital requires businesses to be certified. This tool is offered solely for informational reasons and contains data reported on the Individual Hospital Supplier Diversity Plan for informational purposes.
Key Findings
- The total diverse procurement spend reported between 2021 and 2023 increased by approximately 25%, while the ratio of total diverse procurement spend to total procurement spend increased by approximately one-tenth of a percent (0.1%).
- Between 2021 and 2023, the Unknown Minority category was identified to have had an overall increase of approximately 47%. During program engagement with hospitals about the data, increasing familiarity about the program and its requirements likely is resulting in greater levels of reporting overall, including for the Unknown Minority and other categories.
- The category with the highest reported growth between 2021 and 2023 was the Disabled Veteran category. It had an approximate growth of 140%.
- The category with the lowest reported growth between 2021 and 2023 was the Asian Pacific American category. It had an approximate growth of nine percent (9%).
- One category was identified to have a decrease in reported spend between 2021 and 2023. The LGBT category saw an overall decrease in reported spend of approximately eighteen percent (-18%). Out of $6.9 billion in reported diverse procurement, a total of $106.8m spend was reported for LGBT businesses enterprises.
Visualization
How HCAI Created this Product
The Supplier Diversity in California Hospital Procurements was created using HCAI’s annual Hospital Supplier Diversity Plans, which consist of procurement data that all California hospitals must submit to HCAI.
The data presented in this product is derived from Individual Hospital Supplier Diversity Plans between 2021 and 2023. Individual Hospital Supplier Diversity Plans are submitted annually that reflect the previous calendar year by hospitals licensed under subdivision (a), (b), or (f) of Health and Safety Code section 1250, “with operating expenses of fifty million dollars ($50,000,000) or more, and each licensed hospital with operating expenses of twenty-five million dollars ($25,000,000) or more that is part of a hospital system or regional network.”
While the program does collect System/Regional-Level Hospital Supplier Diversity Plans (i.e. Two or more hospitals owned, sponsored, or managed by the same organization that submit a System/Regional-Level Hospital Supplier Diversity Plan—system reports are for systems that procure goods and services on behalf of the hospitals within a system or region) — System/Regional-Level plans are not mandatory, but are highly encouraged. The reported spend data reflect the consolidated procurement for goods and services for all the hospitals within the system. For this reason, these plans are non-comparable and were not included in this visualization .. If you would like to view the System/Regional-Level Hospital Supplier Diversity Plans, please see the Hospital Supplier Diversity Plans – Dataset.
A hospital may report a Supplier Diversity Plan for some, but not all reporting years, should their operating situation change, such as their operating expenses for a year decrease below $50,000,000 or decrease below $25,000,000 if part of a system.
When analyzing the diverse procurement data, it is important to account for potential duplicate supplier diversity procurement spend data across different categories (e.g., minority, women, LGBT, disabled veteran), suppliers can qualify for multiple categories. The amounts shown on the line chart located on the “Total Diverse Procurement” and the bar graph shown on “Tier I and Tier II Diverse” dashboard include duplicated amounts. The total diverse procurement spend data shown on the “Total Diverse Procurement” dashboard accounts for the less duplicated amount, by subtracting a “Less Duplicate Amount,” which is a single grand total useful for analysis. For example, if a supplier is classified as both a women business enterprise and a minority business enterprise, it would be entered in both categories, but the duplicate value will be subtracted from the Total Diverse Procurement amount.
If $0 were spent on procurement for a category, hospitals were instructed to report $0. If the procurement data is not readily accessible, hospitals were instructed to leave the category blank, this is shown on this visualization with an asterisk.
This product is provided for informational purposes only and to the extent of the data that is available.
To see the complete data set, previous plans, and more, please see the Hospital Supplier Diversity Plans – Dataset.
Glossary
| Term | Definition |
|---|---|
| Hospital Name | The name of the hospital. |
| Hospital Ownership | Hospital Ownership Licensee Type of Control: Investor-Owned: Includes Investor owned Corporation, Investor- Limited Liability Company, Investor- Partnership. Non-Profit: Includes Non-profit Corporation. Public: Includes City or County, District, State and University of California. |
| Category | A classification of business enterprise identified in HCAI statutes that include women-owned, minority-owned (African American, Hispanic American, Native American, Asian Pacific Americans, and Unknown Minority), disabled veteran-owned, and/or LGBT-owned business enterprises. |
| County | The name of the county in which the hospital is located. |
| Urban/Rural Designation | As determined by Medical Service Study Area Designation (MSSA) |
| Require Certification? | This denotes whether the hospital facility requires a diverse business to be certified in order to include their business as part of their Supplier Diversity reporting. Selecting “Yes” filters the data by hospitals that require certification by a third party or are self-identified. |
| Disproportionate Share Hospital | Disproportionate Share Hospitals are defined in Section 1886(d)(1)(B) of the Social Security Act. Disproportionate Share Hospitals serve low-income patients and receive payments from the Centers for Medicare & Medicaid Services to cover the costs of providing care to uninsured patients. |
| Total Procurement | For the purpose of this program, Total Procurement includes all procurement from diverse and non-diverse suppliers by the hospital. Total Procurement means the purchase or lease of supplies, services, equipment, and capital expenditures related to buildings and fixed equipment during the previous calendar year. This does not include items such as employee salaries and wages, fixed asset depreciation, amortization, or taxes. |
| Total Diverse Procurement | For the purpose of this program, Total Diverse Procurement includes all procurement from diverse minority, women, lesbian, gay, bisexual, transgender (LGBT), and disabled veteran business enterprises. Total Diverse Procurement means the purchase or lease of supplies, services, equipment, and capital expenditures related to buildings and fixed equipment during the previous calendar year from diverse business enterprises. This does not include items such as employee salaries and wages, fixed asset depreciation, amortization, or taxes. |
| Tier I Procurement | For the purpose of this program, Tier I Procurement is defined as the procurement by direct contract between a hospital and a supplier directly to provide goods and services that support the operations of the hospital. |
| Tier II Procurement | Tier II Procurement For the purpose of this program, Tier II Procurement is defined as procurement by any agreement or arrangement between a contractor and any third party. |
| Disabled Veteran Business Enterprise | For the purpose of this program, a Disabled Veteran Business Enterprise has the same meaning as defined in subparagraph (A) of paragraph (7) of subdivision (b) of Section 999 of the Military and Veterans Code or any successor provision. Disabled veteran business enterprise certification eligibility requirements shall be consistent with the requirements imposed by the Department of General Services, and this chapter shall only apply to a disabled veteran business enterprise certified by the Department of General Services. |
| LGBT Business Enterprise | For the purpose of this program, an LGBT Business Enterprise is defined as (1) a business enterprise (a) that is at least 51 percent owned by a lesbian, gay, bisexual, or transgender person or persons or (b) if a publicly owned business, at least 51 percent of the stock of which is owned by one or more lesbian, gay, bisexual, or transgender persons; and (2) whose management and daily business operations are controlled by one or more of those individuals. |
| Women Business Enterprise | For the purpose of this program, a Women Business Enterprise is defined as a business enterprise physically located in the United States or its trust territories, that is at least 51 percent owned by a woman or women, or, in the case of any publicly owned business at least 51 percent of the stock of which is owned by one or more women. |
| Minority Business Enterprise | For the purpose of this program, a Minority Business Enterprise is defined as (1) a business enterprise (a) that is at least 51 percent owned by a minority individual or group(s) or (b) that is, if a publicly owned business, physically located in the United States or its trust territories, at least 51 percent of the stock of which is owned by one or more minority groups, and (2) whose management and daily business operations are controlled by one or more of those individuals. The contracting hospital shall presume that minority includes, but is not limited to, African Americans, Hispanic Americans, Native Americans, and Asian Pacific Americans. (1) African Americans: Black Americans-persons having origins in any black racial groups of Africa. (2) Hispanic Americans: Hispanic Americans-all persons of Mexican, Puerto Rican, Cuban, South or Central American, Caribbean, and other Spanish culture or origin. (3) Native Americans: Native Americans-persons having origin in any of the original peoples of North America or the Hawaiian Islands, in particular, American Indians, Eskimos, Aleuts, and Native Hawaiians. (4) Asian Pacific Americans: Asian Pacific Americans-persons having origins in Asia or the Indian subcontinent, including, but not limited to, persons from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territories of the Pacific, Northern Marianas, Laos, Cambodia, Taiwan, India, Pakistan, and Bangladesh. (5) Unknown Minority: A diverse business who is certified as minority owned, but unclear which category it should be reported under. |
| Less Duplicate Amount | For the purpose of this program, the Less Duplicate Amount is to prevent the procurement from being counted multiple times in the combined total, the identical amount(s) should be reported in the less duplicate amount row. |
| Individual Hospital Supplier Diversity Plan | Hospitals licensed under subdivision (a), (b), or (f) of California Health and Safety Code section 1250, “with operating expenses of fifty million dollars ($50,000,000) or more, and each licensed hospital with operating expenses of twenty-five million dollars ($25,000,000) or more that is part of a hospital system or regional network,” shall submit a Hospital Supplier Diversity Plan. Individual Hospital Supplier Diversity Plans can be viewed in the Hospital Supplier Diversity Plans – Dataset. |
| System/Regional-Level Hospital Supplier Diversity Plan | Two or more hospitals owned, sponsored, or managed by the same organization may submit a System/Regional-Level Hospital Supplier Diversity Plan if there are suppliers that provide services or goods to all hospitals within the hospital system or regional network. System/Regional-Level Hospital Supplier Diversity Plans were not included in this visualization. System/Regional-Level Hospital Supplier Diversity Plans can be viewed in the Hospital Supplier Diversity Plans – Dataset. |
Additional Information
Topic: Cost Transparency
Source Link: Hospital Supplier Diversity Reporting Program – HCAI
Citation: HCAI – Hospital Supplier Diversity Reporting Program – Supplier Diversity in California Hospital Procurements, 2021-2023, 2025
Temporal Coverage: 2021-2023
Spatial/Geographic Coverage: Statewide, County
Frequency: Annually