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Hospital Supplier Diversity Reports Due July 1; OSHPD Guidance Still in Development

For CEOs, CFOs, COOs, community benefit directors

Hospitals with operating expenses of $50 million of more, and licensed hospitals with operating expenses of $25 million or more that are part of a hospital system, are required to submit an annual report to the Office of Statewide Health Planning and Development (OSHPD) on their minority, women, LGBT, and disabled veteran business enterprise procurement efforts (Health and Safety Code Section 1339.85-1339.87). The first report is due July 1. 

OSHPD recently sent letters to hospital CEOs asking for the name of the person responsible for submitting the report on behalf of the hospital. OSHPD is still developing submission procedures for the July report and has not yet released any instructions.  

CHA has shared concerns with OSHPD staff, particularly given the upcoming deadline for reporting. Some issues include clarification of definitions (i.e., who qualifies as a supplier), the report time frame, and the need for naming assignments for suppliers. 

The legislation that created the requirement for the report also requires OSHPD to convene a Hospital Diversity Commission comprised of various stakeholders from health care, procurement, and others. The commission’s inaugural meeting was March 12, and OSHPD staff presented the following update: 

  • The first report will be used as a baseline or benchmark report. 
  • For the first report, OSHPD is developing a fillable template that will be aligned to the requirements of the legislation. 
  • OSHPD staff noted that it will develop regulations that seek to standardize future reports.  

OSHPD staff did not, however, provide any time frames for when submission procedures will be available for hospitals. They did note that hospitals can request a 30-day extension for reporting and may email their request to [email protected]

CHA will continue to work with OSHPD on the guidance for the July 1 report and develop FAQs for members, as needed. Hospitals that have concerns or issues they would like to share should contact Trina Gonzalez at [email protected]