Abbott commits $25 million to diversify health care supply chain network

Abbott Laboratories has partnered with a New York-based community-development organization on a $37.5 million initiative to support manufacturing health care businesses run by racial minorities and women.

Abbott and Local Initiatives Support Corp. announced their plan to provide the capital in the form of growth capital and loans on Wednesday. Abbott specifically is contributing $25 million to the initiative. Half will be “flexible” and “affordable” loans with terms not typically available through conventional lenders. The other half will be dispersed in grants, Abbott says.

The other $12.5 million for the initiative is coming from LISC, which works to close gaps in health, wealth and opportunity across race and gender in the U.S.

The companies say the funding will help support diversity in the health care industry by advancing a more inclusive supply chain for Abbott and other health care companies. Eligible companies must focus on manufacturing and other business-to-business products that support the production of diagnostics, nutrition products, medical devices and health technologies, verticals that Abbott’s business focuses on.

Eligible businesses for loans and grants include those that are majority-owned by people who identify as Black, Latino, Asian or Native American, women, veterans, LGBTQ and people with disabilities. Businesses must also be operating for at least two years.

Abbott says part of the goal with the initiative is to ensure the people making products for the health care industry better reflect the communities these items serve.

Abbott did not immediately respond to a request for comment. In a press release, Abbott Chairman and CEO Robert B. Ford said: “We're committed to tearing down the barriers that diverse small-business owners often face, and to building a more inclusive supply chain in health care.”

The new initiative supports Abbott’s 2030 Sustainability Plan, which the company says is designed to help build a diverse supply chain network for itself and other medical device companies. The Lake Bluff-based company says it is working to increase overall spending with diverse and small businesses by 50% by 2030, and specifically with Black and women-owned businesses by 150% by 2025.

The company is also working to address diversity, equity and inclusion challenges in other areas. Abbott says it is increasing diversity in its clinical trials and creating more opportunities in STEM verticals for women and other underrepresented groups.

According to Abbott’s most recent annual filing, Abbott employed about 113,000 people as of Dec. 31. Women represented 47% of the company’s U.S. workforce, 45% of its global workforce and 40% of managers.

In a 2020 diversity, equity and inclusion report, Abbott reported that among manager positions, 19% were held by Asian workers, 6.6% by Hispanic workers and 4.3% by Black workers.