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A seismic shift is underway in California's healthcare landscape, and it's not about a new medical breakthrough or a groundbreaking treatment. This time, it's about equity, inclusion, and the economic empowerment of diverse communities.
Assembly Bill No. 1392 (AB 1392 Fact Sheet) is set to transform the way hospitals do business, compelling them to prioritize spending with minority-owned, women-owned, LGBT-owned, and disabled veteran-owned business enterprises.
Why the Change? It's About Equity, Economics, and Excellence
California recognizes that diverse suppliers are not only essential for a fair and equitable society but also vital for a thriving economy. Studies have shown that diverse procurement practices lead to:
- Increased innovation and competitiveness: Diverse suppliers bring fresh perspectives and innovative solutions to the table, challenging the status quo and driving progress in patient care.
- Stronger local economies: When hospitals invest in diverse businesses, they create jobs, generate tax revenue, and stimulate economic growth within their communities.
- Improved patient outcomes: Research has shown a direct correlation between diverse spending and improved health outcomes in underserved areas.
Assemblymember Freddie Rodriguez, the author of AB 1392, championed this legislation, aiming to address inequities within healthcare procurement. "AB 1392 is focused on addressing inequities and improving benefits," Rodriguez stated on his official website. "By requiring hospitals to submit publicly available verifiable and detailed plans and goals, disadvantaged suppliers have identifiable pathways to partner with hospitals, HCAI can provide stronger recommendations, and hospitals have the steps and resources necessary to support the community they often serve."
The Golden State's Bold Move: New Requirements in 2025
Starting in July 2025, California hospitals with operating expenses exceeding certain thresholds must submit annual plans detailing their strategies to increase procurement from these diverse suppliers.
Trina Gonzalez, Vice President of Policy at the California Hospital Association, explained the new requirements on the association's website: "AB 1392 requires hospitals to report plans for increasing procurement from diverse suppliers, hospital contacts for businesses interested in contracting with hospitals, and descriptions of hospitals’ procurement processes."
But California isn't blazing this trail alone. A growing number of states, including Illinois, Washington, and Massachusetts, are enacting similar mandates, recognizing the powerful impact of diverse spending on local economies and community well-being. The message is clear: hospitals have a responsibility to foster an inclusive business environment that reflects the rich tapestry of their communities.
The Data Doesn't Lie: Diversity Drives Success
Assemblymember Rodriguez notes that current diverse procurement spending in hospitals is disproportionately low, accounting for only 2% of total procurement spending. This legislation aims to change that statistic, and the data shows why it's so important.
Studies have repeatedly demonstrated that companies with diverse leadership teams and supply chains are more innovative, profitable, and resilient. They are better equipped to understand and serve a diverse customer base, and they are more likely to attract and retain top talent.
By prioritizing diversity in procurement, hospitals can tap into these benefits and create a more sustainable and successful healthcare ecosystem.
Healthcare Video Production: A Powerful Tool for Change
AB 1392 underscores that diverse spending can occur in any category, and healthcare video production is no exception. Hospitals rely on high-quality videos for a myriad of purposes:
- Patient Education: Explaining complex medical procedures and treatments in a clear and engaging way.
- Staff Training: Creating immersive and effective training materials for healthcare professionals.
- Community Outreach: Building trust and rapport with the community through compelling stories and testimonials.
- Marketing and Branding: Showcasing the hospital's unique strengths and values.
By partnering with diverse video production companies like Goodsides, hospitals can not only meet their reporting requirements but also elevate their storytelling to new heights.
Real-World Impact: Diverse Suppliers in Action
Imagine a heartwarming video documenting how a minority-owned supplier helped a hospital overcome a critical shortage during a natural disaster, like the story of how a Black-owned trucking company in New Orleans played a crucial role in delivering essential supplies during Hurricane Katrina. Or a powerful visual story showcasing the innovative solutions developed by a women-owned tech company to improve patient care, similar to how a female-led startup revolutionized remote patient monitoring during the COVID-19 pandemic.
These narratives transcend mere transactions; they illuminate the profound impact of diversity on the healthcare landscape.
Your Hospital's Story Matters: Seize the Opportunity
The Inclusion Imperative presents a golden opportunity for all hospitals, regardless of their current spending levels, to embrace diversity and inclusion. Even if your hospital hasn't traditionally worked with diverse suppliers, there are countless ways to get started.
Remember, you don't need a Hollywood budget or a vast archive of footage to tell your story.
A creative video production partner can help you craft compelling narratives that resonate with your audience, even with limited resources.
Partner with Goodsides: Your Healthcare Video Production Experts
Goodsides is passionate about helping hospitals navigate these changes and unlock the transformative power of diverse spending. We specialize in healthcare video production and understand the unique challenges and opportunities facing the industry. Our team of experienced professionals is committed to creating high-quality videos that inform, inspire, and connect with your audience.
Ready to embark on this exciting journey? Contact Goodsides today to schedule a free consultation and discover how we can help you tell your diversity story through the power of video.
