The State of California passed AB 1392 in October 2023 to encourage competitive business opportunities for everyone. AB 1392 requires major hospitals and hospital systems to submit supplier diversity statements, plans, and goals for increasing procurement from minority, women, LGBT, and disabled veteran business enterprises in an annual report. This bill expands on AB 962, which was passed in 2019.
Discover what AB 1392 is, how it affects California hospitals, and how HCP National can help hospitals reach their supplier diversity goals.
Founded in 1994, HCP National is “the healthcare industry’s insurance broker,” specializing in hospitals, healthcare systems, and medical groups. HCP National is a certified diverse (WBENC and MBE) commercial insurance brokerage, headquartered in California.
Hospitals seeking to work with more diverse suppliers can trust HCP National to handle their insurance. Experts in healthcare, HCP National is “the healthcare industry’s insurance broker.”
As a certified WBENC and MBE insurance brokerage, HCP National Insurance Services, Inc. is proud to be the largest certified minority-woman-owned commercial insurance brokerage in the United States.
Since 1994, HCP has served the healthcare industry with all lines of commercial insurance, from property and casualty to employee benefits and reinsurance. HCP has placed more than $1 billion in insurance premiums and currently covers over 1 million members nationwide.
HCP National’s headquarters are located in Aliso Viejo, California.
What is AB 1392?
Authored by Assemblymember Freddie Rodriguez, the California State Legislature passed bill AB 1392 to promote and support diversity in California’s health sector. It requires licensed hospitals with operating expenses of $50,000,000 or more, and licensed hospitals with operating expenses of $25,000,000 or more that are part of a hospital system, to submit annual plans on their minority, women, LGBT, and disabled veteran business enterprise procurement efforts.
According to AB 1392, plans must include “the hospital’s supplier diversity policy statement,” “short- and long-term goals and timetables, but not quotas, for increasing procurement from minority, women, LGBT, and disabled veteran business enterprises,” and “the hospital’s outreach and communications to minority, women, LGBT, and disabled veteran business enterprises.” In addition, the plan must include “the hospital’s procurements that are made from minority, women, LGBT, and disabled veteran business enterprises with at least a majority of the enterprise’s workforce in California, with each category aggregated separately, to the extent that information is readily accessible” as well as “the planned and past implementation of relevant recommendations made by the hospital diversity commission.”
Starting July 1, 2025, AB 1392 requires eligible hospitals and hospital systems to submit an annual plan for increasing procurement from minority, women, LGBT, and disabled veteran business enterprises. The Department of Health Care Access and Information then reviews the diversity procurement plan and provides feedback.
Civil penalties apply if hospitals fail to file.
AB 1392 presents a unique opportunity for hospitals to refine their D&I procurement methodologies.
The state wants to provide competitive business opportunities for all its people, while building relationships with diverse suppliers who uplift California’s communities and embracing businesses with majority Californian workforces.
The Department of Health Care Access and Information may provide recommendations to hospitals and vendors for increasing procurement from minority, women, LGBT, and disabled veteran business enterprises. The department can also support with outreach and provide assistance to facilitate the corrective procurement.
The plans and findings will be published online for public access.
Encourage D&I in the Healthcare Industry
When it comes to insuring hospitals, HCP National is the experienced professional you can trust. Our team will work with you to create a comprehensive risk management program that addresses all your healthcare industry insurance needs.
For more information about our hospital insurance products and services, contact HCP National today.
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I have found my Account Manager to be extremely helpful and to always have my best interest at heart. She is excellent to work with!
I found HCP National Insurance Services, Inc. by looking online for a commercial liability insurance provider. I was not familiar with the company, but gave them a call. It was the best experience I have had with an commercial insurance provider ever. My HCP representative went above and beyond to assist our company. Every question or email was answered in a most timely manner and every effort was made to get us through the application process. I highly recommend this company and we will use them again.
I have been a long time client of HCP for professional liability insurance for my practice. My account manager has always been punctual, diligent in pricing us out to market, and efficient in handling all of our year end paperwork and changes to coverage levels. I would recommend them to all doctors.
Our business has complex insurance requirements and HCP was awesome to work with! They took the time to understand our business to ensure we had the proper coverages and were able to finalize all our insurance needs right on time! HCP National is a great partner for our business!
My account manager was so helpful and knowledgable. I loved that she was available to work through our unique needs! I highly recommend HCP.
Great experience. Great communication. Thank you.
My account manager provided me with the best customer service I’ve ever received anywhere. Her concern and compassion were unsurpassed!
At a time when I was facing some health challeges and surgery, she took whatever extra effort she could to ensure that I got my insurance coverage expeditiously and was so caring at a time when I was nervous about my upcoming surgery. She took that extra effort to make sure I got my policy on time. I highly recommend HCP National for their hard work, being so efficient and for treating me with the highest level of knowledge and concern.
I recently had the pleasure of working with HCP National Insurance Services, and I cannot recommend them highly enough. Their customer engagement was outstanding. The team took the time to listen to our unique needs and concerns, ensuring that we felt valued and understood throughout the entire process.
What truly set HCP apart was their deep understanding of the various insurance options available. They guided us through the complexities of the insurance landscape, helping us navigate through different policies and coverages. Their expertise allowed us to make informed decisions that were tailored to the specific requirements of our organization.
The support we received was not just about selling a policy; it felt like a partnership where our best interests were at the forefront. HCP National Insurance Services made the often daunting task of selecting insurance feel manageable and straightforward.
Overall, I am extremely satisfied with our experience and grateful for the exceptional service provided by HCP National Insurance Services. If you are looking for a knowledgeable and customer-focused insurance provider, look no further!
We are a small practice working in long-term care. When our previous insurance carrier decided late in the game to no longer cover long-term care providers, we began a search for new coverage and thankfully HCP. Our representative ran circles around other account managers we had spoken with and found coverage at a competitive price, all within our limited timeframe. HCP’s team members are the sort of people you look forward to working with; we give HCP an enthusiastic 5-star rating.
HCP National is a proven and trusted ally of Aggie Pediatrics, LLC. Our personal Account Manager is quick to respond to any questions and always willing to take the time to listen. I recommend HCP National to any healthcare provider searching for an affordable program suited to your needs, big or small.
We work with lots of vendors, and you’re one of the few that makes our life easy. Thank you.
You delivered everything you promised and a lot more. Your company is amazing. Wish all our suppliers were like you.
The HCP National team has been incredibly easy to work with. Even before becoming a client, they took the time to answer all of my questions and have repeatedly gone above and beyond to meet the ever-changing needs of our company.
I have been insured by HCP for many years. I can say this is by far the best experience I have ever had with any of my malpractice insurances in the past. The reasons why: their availability 7 days a week; the best price on the market guaranteed; the least paperwork ever (the company does it all for you); direct contact with your insurance carrier and solving your problems right away; no any delay in re-application. Everyone is very professional, knows very well what they are doing, and you feel that you are always in good hands.
I have been a long time client of HCP for professional liability insurance for my practice and my representative has always been punctual, diligent in pricing us out to market, and efficient in handling all of our year-end paperwork and changes to coverage levels. I would recommend HCP to all doctors.
I found HCP National Insurance Services, Inc. by looking online for a commercial liability insurance provider. It was the best experience I have had with a commercial insurance provider ever. My HCP representative went above and beyond to assist our company. Every question or email was answered in a most timely manner and every effort was made to get us through the application process. I highly recommend this company and we will use them again.
