HonorHealth was named Large Corporation of the Year last year by Healthcare Supplier Diversity Alliance. HonorHealth’s commitment to advancing supplier diversity is a crucial initiative that reflects a broader industry shift toward inclusivity and community engagement in healthcare. In 2022, the organization’s Strategic Sourcing & Engagement Office launched a Supplier Diversity program with a clear objective: to increase partnerships with Minority Business Enterprises (MBEs). This initiative aligns with HonorHealth’s mission to foster meaningful connections with diverse community segments, supporting small businesses and enhancing the competitive landscape.
For HonorHealth, growing spend with MBEs isn’t just about financial investment — it’s about strengthening local economies and helping small businesses thrive. The healthcare sector, often dominated by large corporations, must do more than spend with Fortune 500 companies.
By engaging with MBEs, HonorHealth is contributing to the growth of businesses that are foundational to the American economy — small, woman-owned, veteran-owned and LGBTQ+-owned businesses. This approach brings diversity to the supply chain, ensuring high-quality products and services while maintaining competitive pricing.
Strategic Sourcing & Engagement has set ambitious goals, including increasing HonorHealth’s annual supply/service spend with Arizona-based MBEs. In just three years, the program has achieved impressive results, growing MBE contracting spend from $37 million to $70 million. This achievement reflects a larger trend in the healthcare industry, where supplier diversity is gaining traction as a pathway to sustainability, innovation and resilience.
The value of diversity in the supply chain is clear. A more diverse supplier base brings fresh perspectives, greater innovation and an ability to respond to changing market dynamics. For the healthcare industry, this means better service, cost efficiency and a commitment to supporting underrepresented communities. HonorHealth’s seven-year roadmap, which plans to add new MBEs each year, underscores the organization’s dedication to sustainability in supplier diversity.
This focus on diversity not only enhances HonorHealth’s supply chain but also sets a powerful example for the broader healthcare industry, showcasing how a diverse supply chain can create long-term value for all stakeholders.
Did You Know: HonorHealth’s Supplier Diversity program has achieved impressive results in just three years, growing contracting spend with minority business enterprises from $37 million to $70 million. This achievement reflects a larger trend in the healthcare industry, where supplier diversity is gaining traction as a pathway to sustainability, innovation and resilience.
Ryan Kirane is VP, supply chain services & sustainability officer at HonorHealth.
