California Veteran DVBE Strategies Supports AB 1392

FOR IMMEDIATE RELEASE

August 2025

California Veteran DVBE Strategies Supports AB 1392: Expanding Hospital Supplier Diversity

Sacramento, CA – California Veteran DVBE Strategies LLC strongly supports Assembly Bill 1392 (AB 1392), which expands California’s Hospital Supplier Diversity Program by requiring hospitals to set short- and long-term procurement goals with diverse suppliers, publish annual plans, and provide greater transparency in purchasing practices.

Hospitals in California receive the majority of their revenue from taxpayer-funded programs such as Medicare, Medi-Cal, and other public reimbursements. Because these dollars come directly from the public, equity in hospital procurement is not only good policy but also a matter of accountability. AB 1392 ensures that taxpayer dollars invested in healthcare are recycled back into California communities — supporting minority-owned, women-owned, LGBT-owned, and Disabled Veteran Business Enterprises (DVBEs).

“Hospitals and healthcare systems operate with substantial taxpayer funding. AB 1392 creates a fair expectation that these dollars be reinvested in the very communities that supply our workforce, our veterans, and our small businesses,” said Scott Johnson, MBA, PMP, Principal at California Veteran DVBE Strategies LLC. “By requiring hospitals to set measurable supplier diversity goals, AB 1392 ensures that equity is not optional — it is built into the system.”

The legislation also authorizes the creation of a supplier diversity clearinghouse to verify and track diverse suppliers, ensuring transparency and reducing fraud. This will strengthen opportunities for qualified DVBEs and other diverse businesses to participate meaningfully in the healthcare supply chain.

California Veteran DVBE Strategies LLC urges state leaders, hospitals, and healthcare systems to fully implement AB 1392 and demonstrate accountability to taxpayers by opening procurement doors wider to diverse enterprises.