Inclusive, local sourcing: Purchasing for people and place

Making the case for
inclusive, local sourcing

Across the country, healthcare institutions are recognizing that they can creatively leverage their supply chains to address the upstream economic and environmental conditions that have the greatest impact on the health of local residents. In doing so, they can create family-supporting local jobs and build community wealth. This toolkit on local and diverse purchasing showcases examples of how hospitals and health systems are reevaluating their roles as their community’s largest purchasers, understanding that a thriving local economy is fundamental to a healthy community.

The sourcing of goods, services, and food that your hospital or health system does every day, when aligned with your mission, can help build local wealth in the communities you serve. By supporting diverse and locally owned vendors and helping to incubate new community enterprises to fill supply chain gaps, hospital and health systems like yours can leverage existing resources to drive local economic growth and build a culture of health in their communities. This toolkit can help you get started.

Making the case for inclusive, local sourcing

Case Studies

Learning from leaders in the field

University Hospitals

In Cleveland, Ohio, University Hospitals is harnessing its purchasing power to revitalize disinvested urban neighborhoods, encouraging existing vendors to move locally and hire local and minority residents and helping incubate environmentally sustainable,...

MD Anderson Cancer Center

In Houston, Texas, MD Anderson Cancer Center works with existing vendors to facilitate a mentor-protégé program, building the capacity of local, diverse businesses.

Parkland Health and Hospital System

In Dallas, Texas, Parkland Health and Hospital System is integrating supplier diversity into their Request for Proposals and contracting processes and working to build the capacity of local, diverse businesses.

Charleston Area Medical Center (CAMC)

In Charleston, West Virginia, Charleston Area Medical Center is addressing community health needs by purchasing from local farmers and intentionally growing the capacity of the regional food system, creating local jobs and healthier food options for its...

Chicago Anchors for a Strong Economy (CASE)

In Chicago, Illinois, Chicago Anchors for a Strong Economy (CASE) is leveraging its anchor institution members’ purchasing and hiring power, including four health systems, to collectively impact Chicagoland neighborhoods and foster inclusive economic g...

Key Strategies

Creating Connections

Overcoming Barriers for Local and Diverse Vendors

Adjusting internal practices to facilitate connections with local vendors not only shifts procurement dollars in a way that fosters local employment, which in turn promotes community health, but it also grows these businesses over time, allowing for a more responsive and resilient supply chain. Learn more about strategies to create connections

Building Capacity

growing existing businesses and incubating new ones

A capacity building approach helps address supply chain gaps, meet specific product needs, and improve the efficiency and resiliency of the supply chain. Learn more about strategies to build capacity

Diving In

Small projects with big impact

Simple Policy Fixes

Create department and staff positions dedicated to inclusive, local sourcing
Require that local and/or diverse vendors are considered in Request for Proposal (RFP) pool
Make inclusive, local sourcing an explicit goal...

Quick Practice Upgrades

Adjust payment periods and invoicing processes to accommodate small businesses
Incorporate local and diverse spending objectives into job descriptions and evaluations for supply chain
Communicate with community partners...

Readiness Checklist

Do a basic assessment of where your institution is at, and identify the steps you need to take to implement an inclusive, local sourcing initiative

The Big Questions

Getting clarity on Your Goals and Priorities

What does “local” mean to your institution?

What does “community” mean to your institution?

Which institutional priorities would be met if your purchasing was more inclusive and local?

Learn how to ask — and answer — the big questions

Laying the Foundations

Setting the stage for transformative impact

The Return on Investment

how inclusive, local sourcing benefits your institution and how to measure business impact

Savings

KEY BENEFITS TO YOUR BOTTOMLINE

Create a more efficient and resilient supply chain
Decrease community need for and use of uncompensated care
Leverage philanthropic and public resources

Additional Benefits

A MORE EXPANSIVE NOTION OF ROI

Improve overall community health and well-being
Become a provider of choice
Meet other strategic goals, such as sustainability

Overcoming Barriers

Promising solutions to common challenges

Existing contracts prevent switching to or working with a local, diverse vendor….
No existing vendors provide the good or service needed…
Public regulations prevent preferences for local and/or diverse vendors…
Contract with Group Purchasing Organization (GPO) limits the amount of discretionary spending available…

Learn how your peer institutions are tackling these problems

More resources

additional templates and tools plus further reading and research

Purchasing