Passed in 2019, California hospitals must now comply with Assembly Bill No. 962. Essentially, AB 962 requires hospitals to increase affiliations, partnerships, and engagements with diverse businesses to benefit California’s marginalized communities.
Discover what AB 962 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 962?
In October 2019, the California State Legislature passed Assembly Bill No. 962 (AB 962). Authored by Assemblymember Autumn R. Burke and coauthored by Assemblymember Rob Bonta, AB 962 promotes and supports diversity in California’s health sector by requiring “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.”
The bill required hospitals to submit their first diversity reports to the Office of Statewide Health Planning and Development by July 1, 2021. Hospitals are now required to submit diversity reports to the office by July 1 annually. Civil penalties apply if hospitals fail to file.
AB 962 presents a unique opportunity for hospitals to focus on their commitment to D&I: supporting diverse suppliers and uplifting California’s communities.
According to AB 962, “it is in the state’s interest to encourage competitive business opportunities for all of its people. Hospitals are uniquely positioned to build relationships within the communities they serve through the development, inclusion, and utilization of certified minority, women, LGBT, and disabled veteran business enterprises whenever possible. National companies are able to leverage buying power to save costs to the benefit of patients.”
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.
