AB 962 – Impacting Total Healthcare With Supplier Diversity

Leanne Strickler

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 risk management, credentialing, and compliance infrastructure, making it more robust and responsive.


Feature Benefits
Sourcing Supplier Search/ Posting

Finding the right diverse or local suppliers for specific needs or spend categories can be challenging for your organization. 

The good news is that SupplierGATEWAY Sourcing App hands you the power of searching and identifying suppliers with advanced search filters of particular items/ categories that match your organization’s goals. No matter how specific your requirements are, we’ve got you covered.

Supplier Engagement – QuickConnect Matchmaker

The challenge of sourcing, screening, scheduling and tracking suppliers to make direct connections with is now made easy.

When you have new projects and are looking for qualified suppliers, the “new opportunities post” feature will automatically notify prospective suppliers, including your requirements and detailed project information. Then, QuickConnect Matchmaker enables you to quickly and conveniently schedule web meetings, conference calls, or in-person meetings with potential suppliers in one place.

Inclusion/ Outreach Reporting

Tracking outreach and inclusion efforts as they happen makes it easy to compile “best efforts” information for your diversity program reports. SupplierGATEWAY automatically notes inclusion activities as they happen, giving you continuous insight into activities related to interaction with diverse and local suppliers.

Leveraging our sourcing app will save you a ton of time and money and accelerate your process to find and engage with potential local and diverse suppliers.

Diversity Data Enrichment Diversity Data Discovery

We know it can be challenging for you to identify, classify and categorize the demographics of hundreds or thousands of diverse suppliers in your supply chain. 

Our on-demand data enrichment app allows you to quickly update your supplier diversity data by bouncing the supplier list against millions of SupplierGATEWAY supplier records to uncover details about your supplier’s identity, including diversity classification and certification ethnicities and more.

Your results will be presented in the comprehensive and easy-to-use dashboard and exported with our customizable Excel report or our available API.

Tier-1 Diversity Reporting  Economic Impact Reporting

The Economic Impact Report tool gives you a big picture view of all of your diverse suppliers’ data, including what business category creates the most impact, what geographic regions are being impacted the most, and how many jobs your inclusive behavior supports. 

SupplierGATEWAY leverages the BEA RIMS II model to analyze and summarize the economic impact of your spend.

Tier-2 Project Reporting Project/ Construction Spend Reporting

Implementing Tier-2 into your diverse spend reporting program leverages your supply chain to increase diverse spend and create more economic opportunities for small and minority-owned businesses. 

Tier-2 Project Reporting tools enable you to efficiently track and manage Tier-2 diverse spend on unlimited individual and combined projects in one place. We give you a complete view of your Tier-2 supplier diversity initiatives across all projects in a single dashboard.

Supplier Management Supplier Enablement

The onboarding process becomes more critical as your reliance on suppliers has dramatically increased. Establishing and maintaining up-to-date information about all of your suppliers is a big challenge that may have significant negative consequences for lapses or gaps.

Our automated and instant-on supplier management system makes your job easier by automating the engagement, vetting and monitoring of your suppliers in an easy-to-use solution. 

Standardizing your process and utilizing the supplier self-service portal with SupplierGATEWAY ensures a smooth and consistent onboarding process, comprehensive due diligence and compliance regime, and mitigates fraud and risk.


Outreach Compliance Report Console

AB 962 Data Reporting

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 Hand

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.

Further Reading


Supplier Management at Scale

Reduce your risk, increase your resiliency,  maximize your diversity spending, and even get some cash back with our Enterprise Platform.

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