BOSTON, Nov. 17, 2021 /PRNewswire/ -- Blue Cross Blue Shield of Massachusetts (Blue Cross) today released a new report on the economic impact of its supplier diversity program. The 2020 Supplier Diversity Impact Report finds Blue Cross' spending is supporting jobs and revenue for small and diverse businesses locally and nationwide.
"Creating more opportunities for small and diverse businesses has been a cornerstone of our diversity and inclusion efforts and has made us a better company," said Andrew Dreyfus, president and CEO at Blue Cross. "We remain committed to supporting a more equitable local economy, which will allow businesses and our community to thrive."
Blue Cross' supplier diversity program has been supporting the advancement of minority, women, LGBTQ, veteran and disability-owned businesses for 20 years. The company deploys a three-pronged strategy focused on procurement; engagement; and supplier development initiatives such as mentorships, scholarships, education and training.
Key highlights from 2020 include:
- Blue Cross' direct diversity spending totaled $43 million, growing 22.9% since 2016. $11.5 million was spent with small and diverse suppliers in Massachusetts.
- The company's purchases with small and diverse businesses contributed $82 million to the national economy, up from $67 million in 2016.
- Blue Cross' direct spending with diverse businesses supported 640 jobs nationwide and nearly 200 jobs in Massachusetts.
- $37 million in salaries and benefits were paid to employees from the jobs supported by Blue Cross' supplier diversity program.
Recognizing the economic impact the COVID-19 pandemic has had on small and diverse suppliers, Blue Cross has bolstered its commitment to supporting these businesses. The company expanded the scope of products and services purchased from diverse businesses to include personal protective equipment and partnered with the Center for Women and Enterprise and the Greater New England Minority Supplier Diversity Council to review and evaluate applications for women and minority-owned business certification.
"The past 20 months have highlighted how important supplier diversity is for companies like ours, helping to build capacity and sustainability in business communities" said Daylana Ervin-Parker, director of budget and supplier diversity at Blue Cross. "Finding new ways to partner with small and diverse suppliers during the pandemic has not only allowed us to support those businesses but also provided us with an opportunity to deepen relationships and be responsive to the changing needs of our customers, members and community."
Blue Cross' supplier diversity program is part of its broader commitment to addressing equity and racial justice. To read the full 2020 Supplier Diversity Impact Report, click here.
About the analysis
The 2020 Supplier Diversity Impact Report utilizes economic impact modeling, a standard tool used to quantify the economic contributions of an investment or company. This modeling uses an "Input-Output" economic model to estimate the number of times each dollar of "input," or direct spending, cycles through the economy in terms of "indirect and induced output," or additional spending, personal income, and employment.1 There are several Input-Output models used by economists to estimate multiplier effects. Blue Cross used information from supplier.io, which employed the IMPLAN input-output model in developing estimates of spending, income and employment impacts. This model, initially developed by the U.S. Department of Agriculture, examines inter-industry relationships in local, regional, and national economies.
This report is based on an analysis of data provided by Nationwide using IMPLAN's Input-output multipliers, and the supplier diversity information in supplier.io's database of nearly 1.6 million active certifications.
About Blue Cross Blue Shield of Massachusetts
Blue Cross Blue Shield of Massachusetts (bluecrossma.org) is a community-focused, tax-paying, not-for-profit health plan headquartered in Boston. We are committed to the relentless pursuit of quality, equitable and affordable health care with an unparalleled consumer experience. Consistent with our promise to always put our members first, we are rated among the nation's best health plans for member satisfaction and quality. Connect with us on Facebook, Twitter, YouTube, and LinkedIn.
SOURCE Blue Cross Blue Shield of Massachusetts