Cleveland Clinic, Intermountain Healthcare, Kaiser Permanente, and Providence are among 12 systems in the country to sign a commitment to expand supplier diversity.
The Impact Purchasing Commitment — designed by the Healthcare Anchor Network in partnership with Health Care Without Harm and Practice Greenhealth — includes increasing spending with minority and women-owned business enterprises (MWBEs), as well as local and employee-owned, cooperatively owned and/or nonprofit-owned enterprises, by at least $1 billion over five years, a press release stated.
The other systems include Advocate Aurora Health, Baystate Health, Bon Secours Mercy Health, CommonSpirit Health, Henry Ford Health System, Rush University Medical Center, Spectrum Health and UMass Memorial Health.
"Supporting supplier diversity is a proactive business process at Cleveland Clinic," Bill Peacock, the Clinic's chief of operations, said in a provided statement. "By being purposeful with where we purchase our goods and services, we can make a meaningful, measurable and lasting impact on the well-being of our neighbors and our local economy."
In the past 10 years of the system's Supplier Diversity Program, the Clinic has spent more than $1.1 billion with diverse suppliers, according to the release. The Clinic aims to double its spend from last year to $160 million by 2025.
An estimated 1 in 5 small businesses closed during the COVID-19 pandemic, according to the release, which notes that the closures disproportionately affected small businesses owned by immigrants, women, and Black, Latinx, and Asian individuals.
These businesses generate local jobs (including jobs with suppliers and other vendors), economic opportunities and community wealth building. The loss of these small and MWBE businesses has a broader impact on racial inequality and health equity, according to the release.
"Investing in minority and women-owned businesses is a priority for our organization," said Dr. Adam Myers, the Clinic's chief of population health, in a provided statement. "As an anchor institution, our goal is to create the healthiest community for everyone. Our commitment to working with diverse suppliers is an example of our actions to address social determinants of health and support our neighbors."
This story first appeared in our sister publication, Crain's Cleveland Business.