California’s Hospital Diversity Act: Assembly Bill 962

And What You Need to Know


Authored by Vasquez & Co. LLP

Governor Newsom signed Assembly Bill 962 (AB-962): The Hospital Supplier Diversity Act. This bill sheds light on the degree to which the state's hospital sector contracts with and outreaches to diverse business for various goods and services.

Who does AB 962 apply to? California hospitals with operating costs of at least $50 million, or half that amount ($25 million) if they are part of a system of hospitals.

What is required? Annual reports submitted to the Office of Statewide Health Planning and Development on the hospital's diverse procurement efforts, supplier diversity policy statement, as well as outreach and communications with minority owned business and other DBEs.

When is this due? The first report must be submitted by July 1, 2021 and submitted annually thereafter. By July 31, 2021 the Office of Statewide Health Planning and Development shall establish and maintain a link on the office's website that provides public access to the contents of each hospital's report.

Download full AB 962 bill text here.