12 Health Systems Shop Local to Boost Supply Chain Sustainability

A dozen health systems have committed to support supply chain sustainability by increasing spending with Minority and Women Owned Business Enterprises (MWBE) by $1 billion over the next five years.

The Impact Purchasing Commitment was designed by Healthcare Anchor Network (HAN), in partnership with Health Care Without Harm and Practice Greenhealth, to help address the economic, racial, and environmental disparities that affect overall health outcomes in a community. Directing funding toward businesses owned by women, immigrants, and people of color can lead to increased employment opportunities which in turn can improve individuals’ health outcomes.

HAN’s commitment will also support local, employee-owned businesses and cooperatively and nonprofit-owned businesses, according to the press release. In addition, the health systems will work with their existing vendors to create hiring pipelines for these underserved communities.

The twelve health systems that have signed the Impact Purchasing Commitment include Advocate Aurora Health, Baystate Health, Bon Secours Mercy Health, Cleveland Clinic, CommonSpirit Health, Henry Ford Health System, Intermountain Healthcare, Kaiser Permanente, Providence, Rush University Medical Center, Spectrum Health, and UMass Memorial Health.

Small and locally owned businesses were hit particularly hard during the COVID-19 pandemic. An estimated 420,000 businesses have closed, with businesses owned by immigrants, women, and Black, Latinx, and Asian individuals seeing higher rates of closure. These businesses provide a number of local jobs that help boost the community economy. The sudden closure increases have highlighted the effects of racial inequality and health inequity.

“The number of Black business owners decreased by 41 percent, Latinx business owners by 32 percent, and Asian business owners by 26 percent,” the press release stated. “Immigrant owners decreased by 36 percent and women business owners by 25 percent.”

“Health systems are uniquely positioned to have positive impact as leading employers and economic engines in their communities,” said David Zuckerman, executive director of HAN.

“In addition to providing quality healthcare, they can leverage institutional resources, including almost $500 billion in annual spending, to help address the economic, racial, and environmental resource disparities that impact community health outcomes.”

The health systems’ commitment to increase spending with MWBEs can help stabilize the businesses so they can recover from any blows received during the pandemic. Stabilizing the businesses and creating more employment opportunities will increase access to health insurance and provide stable wages, boosting overall wealth and health in the communities.

The Impact Purchasing Commitment will also benefit the health systems. By including local businesses and MWBEs in their healthcare supply chains, the health systems can promote sustainability, inclusion and diversity, and community benefit priorities, according to the press release.

Sourcing products and services from MWBEs can strengthen the health systems’ reputations as the local provider of choice, address supply chain needs, and create more efficient supply chains.

The health systems have also committed to adopting sustainable procurement goals, which aligns with Practice Greenhealth’s initiative to purchase goods and services that minimize damage to the environment. These sustainability practices can reduce pollution particles and lead the switch to clean energy which can reduce air pollution deaths.

“Right now, small businesses—especially those owned by women, people of color, and immigrants—need focused and intentional investment to sustain them,” Lloyd H. Dean, chief executive officer of CommonSpirit Health, said in a statement about joining the HAN commitment.

“As health institutions, we see firsthand how building community wealth can improve health and wellbeing by stabilizing employment and wages. Directing our purchasing and capital dollars to disinvested communities strengthens our connection to the people we serve and is another means to achieve racial equity.”