Watch our AB 962 Webinar, updated for new 2022 reporting requirements:
With AB 962, hospitals are expected to increase engagement and partnerships with diverse businesses to leverage the rapid growth of the health sector to benefit marginalized communities in California.
What Is AB 962?
The California State Assembly passed Assembly Bill 962 (AB 962) in 2019. Authored by Assemblymember Autumn Burke (D-Inglewood), AB 962 supports and promotes diversity by requiring a licensed hospital with operating expenses of $50,000,000 or more, and a licensed hospital with operating expenses of $25,000,000 or more that is part of a hospital system, to annually submit a report on its certified minority, women, LGBT, and disabled veteran enterprises procurement efforts.
How AB 962 Immediately Impacts Hospitals
The original report was due on July 1, 2021 and then updated annually. Failure to file a report within 30 days after the deadline shall subject the licensed hospital to a civil penalty of $100 per day. The report requires collecting qualitative and quantitative data as evidence of inclusive procurement practices, and all the information must be readily accessible. Starting in 2022, AB 962 requirements changed and now include Tier 2 engagement reporting. This fundamentally changes how your hospital or health care system engages with tier 1 suppliers.
How SupplierGATEWAY Can Help You with AB 962 Supplier Diversity and Data Reporting Requirements
As a leading cloud-based supplier management platform, we are thrilled to give you a complete, easy-to-use, turnkey solution to support your organization’s supplier diversity and AB 962 data reporting requirements.
With the new Tier 2 requirements, your organization now has to put rubber to pavement, and our Supplier Diversity Platform helps your organization quickly and accurately organize, track and report all of your supplier diversity engagement metrics.
Our low-cost, instant-on solutions help accelerate your program efforts while making supplier management easier. We can also handle your supplier onboarding and offboarding, which makes your supplier management more robust/
Outreach Compliance Report Console
As part of your Supplier Diversity Platform, you’ll also have access to the AB962 Data Reporting and Outreach Compliance Report Console. This tool centralizes the key evaluation criteria of your program in one place. You can easily manage reports for an individual hospital or the entire system, all from one convenient location.
Save Time and Money
Organizing the data for your program can be an incredibly time-consuming task for an IT department that has more work than it does hands. Hiring an additional team member to handle your supplier diversity is an additional expense that might not be in the budget. Our Supplier Diversity Platform costs $12,500 per year, comes with built-in training, and support from a client success manager. Should you decide you want us to manage supplier enablement, credentialing, procurement, risk management and more, our Enterprise platform costs $37,500 for the year.
Remember: each day after 30 days that your report is late, your organization is fined $100 per day. This can easily accumulate to over $36,000 for the year.
Download Now: AB 962 Diversity Outreach Sample Report
A Successful Diversity Program Is In Your Hands
Building solid relationships with local and diverse businesses and efficiently managing suppliers are the cornerstone of your company’s success in many ways. Having a responsive, flexible and reliable supplier management system is a critical component of any strategy aiming to positively impact both your company’s bottom-line and the community.
About SupplierGATEWAY:
SupplierGATEWAY is a leading cloud-based supplier management platform, which automates and simplifies vendor management. SupplierGATEWAY apps can be deployed individually or in any combination and easily integrated with existing AP/ERP infrastructure. The app capabilities encompass Supplier Registration and Enablement, P2P Sourcing and Procurement, Supplier Management, Financial Risk Monitoring, Supplier Compliance Management, Corporate Responsibility / Diversity, Vendor Credentialing.
SupplierGATEWAY has powered global supply management environments across multiple industries since 1997. We support billions of dollars in purchase transactions and hundreds of thousands of active suppliers in various industries, including Healthcare, Aerospace and Defense, Retail, Staffing, Manufacturing, Food and Beverage, Sports and Entertainment, and Health Sciences.