Contribution to national economy increased by more than 50 percent in four years
Independence Health Group (Independence) announced the results of a second economic impact study of its supplier diversity program. The study looked at Independence’s alliances with businesses owned and operated by women, veterans, people of color, and members of the LGBTQ community.
The study found that in 2018, the company’s hiring of diverse suppliers contributed $375 million to the national economy, up from $238 million in 2014. In addition, the Independence supplier diversity program created 1,703 jobs paying $94.1 million in salaries and benefits, and generated $30.1 million in federal, state, and local tax revenue.
“Independence measures our commitment to supplier diversity not just by intent but by impact, so attention to metrics ensures that we stay true to our goals,” said Gregory E. Deavens, Independence President and CEO. “Over the past 10 years, we have spent close to $1 billion with diverse and vibrant businesses who can support our needs. Furthermore, our diverse supplier program’s broader impact on the national economy has increased by more than 50 percent since our last study four years ago.”
There were several notable findings of the 2018 study:
- In Pennsylvania, 715 jobs were attributable to diverse suppliers hired by Independence (up from 565 in 2014). This includes 626 jobs in the five-county Philadelphia area (up from 490).
- Salaries and benefits paid to employees by these suppliers in Pennsylvania totaled $34.9 (up from $27.6 million), including $32.5 million in the Philadelphia area (up from $25.5 million).
- Nationally, employees of these diverse suppliers purchased $251 million in goods and services, including $91 million in Pennsylvania and $74.8 million in the five-county Philadelphia area.
The Independence study also showed that:
- Women-owned businesses contributed $78.7 million to the economy, created 563 jobs paying $28.4 million in salaries and benefits and generated $9.4 million in tax revenue (federal, state and local).
- Multicultural businesses contributed $136.2 million to the economy, created 755 jobs paying $43 million in salaries and benefits and generated $14.3 million in tax revenue (federal, state and local).
For 30 years, Independence’s supplier diversity program has been creating opportunities for businesses while promoting job creation and helping to grow the economy. In addition to the supplier diversity program, the company is committed to attracting and sustaining a talented and diverse workforce, promoting greater access to health care, addressing health disparities, and building partnerships and supporting organizations that assist people experiencing economic hardship.
The economic impact study was conducted by Scott Vowels, PhD, founder of The Institute for Thought Diversity, who also conducted Independence’s 2014 study. Mr. Vowels has more than two decades of procurement and supplier diversity experience.