Philadelphia, PA — October 14, 2016 — Independence Health Group (IHG) today released the results of an economic impact study of its long-standing supplier diversity program – which has actively cultivated relationships with minority-owned and women-owned businesses since 1991. The study found that, for the year 2014, IHG’s hiring of diverse suppliers contributed $238 million to the economy, created 1,082 jobs paying $57.9M in salaries and benefits, and generated $19.1 million in tax revenue (federal, state and local).
“At Independence Health Group we see tremendous value in diverse ideas, experiences, and perspectives, which is one of the many reasons IHG’s affiliates have a 25-year history of strong relationships with diverse suppliers,” said Daniel J. Hilferty, president and CEO, Independence Health Group. “Not only does our focus on supplier diversity make sense economically and meet the needs of our business, this economic impact study proves that this approach promotes job creation and stimulates the economy.”
Over the past decade, IHG’s affiliates have spent more than $502 million with diverse suppliers, including $76.5 million in 2014. In turn, these suppliers paid federal, state and local taxes, hired and paid employees, and these employees purchased goods and services throughout their communities.
Highlights of the study of 2014 spending:
- In Pennsylvania, 565 jobs were attributable to diverse suppliers hired by Independence, including 490 jobs created in the five-county Philadelphia area.
- Salaries and benefits paid to employees by these suppliers in Pennsylvania totaled $27.6 million, including $25.5 million in the five-county Philadelphia area.
- Nationally, employees of these diverse suppliers purchased $159 million in goods and services, including $71.9 million in Pennsylvania, and $58.4 million in the five-county Philadelphia area.
In addition, the IHG study showed that:
- Women-Owned Businesses contributed $117.3 million to the economy, created 567 jobs paying $28.6M in salaries and benefits and generated $9.4 million in tax revenue (federal, state and local).
- Multicultural Businesses contributed $98.7 million to the economy, created 365 jobs paying $21.9 in salaries and benefits and generated $7 million in tax revenue (federal, state and local).
Another fair comparison of IHG’s multicultural contract distribution can be found in the fact that African American businesses constituted 68.7 percent of the company’s “multicultural-specific” spend in 2014, while Asian firms represented 20.8 percent and Hispanic companies came in at 10.4 percent. By comparison, the multicultural population in Philadelphia is similarly aligned with African American-owned firms comprising 56.4 percent of all multicultural businesses, with Asian-owned firms at 24.0 percent and Hispanic firms at 19.5 percent.
The supplier diversity program is just one way that IHG supports diversity and inclusion. The company is also committed to attracting a workforce that reflects the communities it serves. Currently, the company’s more than 10,000 associates are approximately 74 percent female and 50 percent multicultural. In addition, the company supports diversity through its Associate Resource Groups, Diversity Leadership Council, training and professional development opportunities, and college internship program.
The economic impact study was conducted by Scott Vowels, PhD, Founder of The Institute for Thought Diversity (ITD). Mr. Vowels has more than two decades of procurement and supplier diversity experience.