Hospitals: procurement contracts.

Existing law requires the State Department of Public Health to license and regulate health care facilities, including hospitals. Existing law establishes the Office of Statewide Health Planning and Development, which is vested with all the duties, powers, purposes, responsibilities, and jurisdiction of the State Department of Public Health relating to health planning and research development. This bill would require 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 to the office on its minority, women, LGBT, and disabled veteran business enterprise procurement efforts, as specified. The bill would require the reports to be submitted by July 1, 2021, and then updated annually thereafter. The bill would impose specified civil penalties for a failure to submit a report. The bill would require the office to maintain a link on the office's internet website that provides public access to the content of those reports, as specified. The bill would require the office to convene a hospital diversity commission comprised of a member of the public and health care, diversity, and procurement stakeholders who are appointed by the Director of Statewide Health Planning and Development for specified terms of office. The bill would require the commission, on or before July 1, 2020, to hold an initial meeting with all commissioners. The bill would require the commission, among other things, to promote and provide outreach to hospitals that are actively engaged in supplier diversity issues. The bill would prohibit the commissioners from receiving compensation for their services, but authorize the office to reimburse them for their actual and necessary expenses incurred in connection with attending a meeting of the commission. The bill would require the office to review and revise, if necessary, the office's conflicts of interest regulations to ensure that each commissioner is required to disclose conflicts of interest to the public.