- By FYH News Team
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Minority- and women-owned businesses are disproportionately cut out of contracts for goods and services awarded by Harris Health, the county’s public health care system.
Colette Holt & Associates, a San Antonio-based law firm, conducted the study for Harris Health, and found that minority- and women-owned businesses received only about 8 percent of contract dollars awarded by the system, even though they accounted for about 20 percent of the firms qualified to perform the work.
Of contracts $50,000 and over in the sample size, none went to black firms, 2 percent went to Hispanic-owned businesses, and less than 1 percent went to Asian-owned businesses. About 5 percent went to white women. The remaining 92 percent went to businesses that are not minority owned.
During the time the study was conducted, Harris Health awarded $76 million in contracts. Harris Health has two hospitals in its system — Ben Taub Hospital and Lyndon B. Johnson Hospital and a network of more than 40 clinics, health centers and specialty locations.
“I have minority and women owned businesses come and raise the issue. You know, it’s good ‘ole boys network, and it’s hard to get around that,” said Rodney Ellis, a Harris County commissioner.. “You got to break those traditions and create opportunities for people who have not operated on a level playing field.”
The study was the first time that Harris Health has examined disparities in contracting. It reviewed a sample of contracts for construction projects, wholesale goods, such as hospital equipment and supplies, and other services. It specifically looked at contracts valued at $50,000 and above for fiscal years 2018 and 2019 that were awarded to firms in Harris, Fort Bend, Montgomery and Galveston counties.
Several minority and women business owners said in interviews for the study that they they face biased and negative assumptions about their qualifications and capabilities. They also said it was difficult to obtain information about opportunities to work with Harris Health.
The report suggested that Harris Health do more outreach and improve access to information about opportunities to contract with Harris Health, and create a senior leadership position to oversee diversity.
“You have my commitment to implement the recommendations in this report,” Dr. Esmaeil Porsa, president and CEO at Harris Health System said during a Thursday board meeting.
Harris Health said it will develop a minority and women-owned business enterprise contracting policy by June, and will appoint someone to a senior leadership position which will be responsible for implementing the policy.
Although the Houston region is diverse, there are still economic inequalities that exist and providing this opportunity is one way to mitigate the inequalities, Ellis said.
“It’s a tremendous opportunity for us to grow our minority entrepreneurial base,” Ellis said. “That’s because minority and women owned businesses tend to hire their own.”
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