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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 21, 2024
Premier, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-36092 |
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35-2477140 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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13034 Ballantyne Corporate Place Charlotte, NC 28277 |
(Address of principal executive offices) (Zip Code) |
(704) 357-0022
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol |
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Name of each exchange on which registered |
Class A Common Stock, $0.01 Par Value |
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PINC |
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NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. |
Regulation FD Disclosure |
On October 21, 2024, Premier, Inc. (the “Company”) announced the release of its 2024 Sustainability Report, dated as of October 21, 2024 (the “Report”), which was approved by the Company’s Board of Directors and its Nominating and Governance Committee. The Report is attached as Exhibit 99.1 to this report and is incorporated herein by reference.
The information discussed under this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, or incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. |
Financial Statements and Exhibits |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Premier, Inc. |
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By: |
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/s/ Michael J. Alkire |
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Name: Michael J. Alkire |
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Title: President and Chief Executive Officer |
Date: October 21, 2024
Exhibit 99.1 2024 Sustainability Report
Forward-Looking Statements Statements made in this report that are not
statements of historical or current facts, such as those related to Premier's ability to advance its growth strategies and develop innovations for, transform and improve healthcare, the intended or expected performance or utility of Premier's
products and services, and Premier's ability to advance environmental, social and/or governance plans or initiatives and the intended or expected benefit to Premier or its stakeholders from those plans or initiatives, are “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or
achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking
statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,”
“expects,” “estimates,” “intends,” “remains committed to,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to
Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to risks and uncertainties, many of which are outside Premier’s control. More information on risks and uncertainties
that could affect Premier’s business, achievements, performance, financial condition and financial results is included from time to time in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC, including those sections of Premier’s Form 10-K for the year ended
June 30, 2024, and subsequent Quarterly Reports on Form 10-Q. Premier's periodic and current filings with the SEC are made available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they
are made, and Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events that occur after that date, or otherwise. All metrics in this report are based on
internal company data and estimates unless otherwise noted.
Table of Contents 00 Introduction 00 Introduction 4 Letter from Our
President and CEO 5 01 Improving About Us 6 Community Health Our Approach to Sustainability 8 About This Report 10 02 FY2024 Highlights 11 Ethics And Compliance Awards and Recognition 12 01 Improving Community Health 13 03 Improving Patient Outcomes
and Lowering Costs 14 Our People And Culture Advocacy to Improve Community Health 16 Improving Health Through Community Development 17 04 02 Ethics and Compliance 20 Responsible Supply Chain Corporate Governance 21 Enterprise Risk Management and
Business Continuity 23 05 Cybersecurity Risk Management and Data Privacy 24 Environmental Political Contributions 26 Stewardship 03 Our People and Culture 27 06 Our People First Philosophy 28 Appendix Benefits and Compensation 29 Talent Management
and Development 30 Employee Health and Safety 32 Diversity, Equity, Inclusion and Belonging 32 04 Responsible Supply Chain 35 Ethical Standards 36 Product Quality and Safety 37 Drug Shortages and Traceability 38 Environmental Sustainability in
Procurement 38 Supplier Diversity 39 Direct Sourcing 40 Supply Chain Resiliency and Disaster Response 41 05 Environmental Stewardship 42 Addressing Climate Change 43 Facilities Management 44 06 Appendix 45 Sustainability Data Table 46 SASB Index 48
TCFD Index 52 SDG Index 56 ESG Materiality Assessment Definitions 58 Citations and Footnotes 59 3
00 INTRODUCTION At Premier, we’re reinventing the next generation
of healthcare, using every tool in our arsenal to improve health outcomes and lower costs. > Letter from Our President and CEO > About Us > Our Approach to Sustainability > About This Report > FY2024 Highlights > Awards and
Recognition
Premier gives back to communities via volunteering, We also continued to
assess our greenhouse gas (GHG) On behalf of Premier’s employees and our Board of emissions to baseline our carbon footprint for Scope 1 and 2 financial support and employee expertise. Premier’s Directors, I am delighted to present
Premier’s 2024 GHG emissions. As part of our ongoing focus to minimize our volunteer efforts support several organizations local to our Sustainability Report, a testament to our ongoing LETTER environmental impact, we are committed to taking
measured headquarters in Charlotte, North Carolina, that address social commitment to environmental stewardship, social steps to continue to advance our environmental efforts. impact initiatives such as health equity, food insecurity, responsibility
and governance excellence. homelessness and mental health. In fiscal 2024, employees We continue to strengthen our risk management and data Environmental, social and governance (ESG) practices are FROM OUR donated more than 1,200 hours of their time
and strategic privacy programs. Managed directly by our Board, our core to who we are as a company and incorporated into expertise to provide leadership support as mentors, risk-management and data security programs are backed our mission to improve
the health of communities. Together committee members or board members to nonprofits that by robust plans designed to minimize disruptions and with our values, ESG practices are the guideposts we use advance community health. In addition, through
our Cares PRESIDENT ensure privacy protections in the event of a natural disaster, to ensure that our strategy to deliver long-term growth Award program, Premier donated $100,000 to CourageLIVES, cyber-attack or other emergency. Business continuity
and and value also results in a positive and sustainable impact. a community-based, comprehensive support system for those infrastructure recovery capabilities are validated through Moreover, our approach guides how we empower our affected by human
trafficking, exploitation, sexual/domestic security drills, third-party audits, cyber maturity assessments members, customers and other stakeholders to deliver AND CEO violence and other abuses, and, together with our employees, and mock event
drills designed to ensure adherence to better healthcare, advance social responsibilities and donated a total of $187,816 to charitable organizations Premier’s high standards of excellence. New in fiscal 2024, improve environmental
stewardship. worldwide through our Social Responsibility Program, Premier’s Digital Risk and Compliance team incorporated an As we navigate a rapidly evolving world, sustainability including support for disaster relief after the Maui wildfires
artificial intelligence (AI) standards and expectations section and humanitarian support within the Middle East. remains an important part of our strategic vision and within our GPO supplier agreements and implemented a new operational practices.
The purpose of this report is to internal generative AI policy, which requires approval of any Premier is committed to health and wellness solutions highlight the numerous ways ESG practices are integrated AI tool before employee use. We will
continue to review and for a diverse world. Our diversity, equity, inclusion and into our business and how they enable us to better support update the standards and our approach to AI to help ensure belonging (DEIB) program focuses on a two-pronged
our members and other stakeholders, including the safe integration of this technology into our business. approach: (1) developing talent with a greater diversity of communities we serve. thought and perspectives; and (2) multiplying our efforts As
we look to the future, Premier is committed to integrating Premier’s commitments to business ethics begin at the by harnessing the collective power of our members. In sustainability into every aspect of our business consistent fiscal 2024,
Premier’s DEIB indicators scored above global highest level of our company. Transparent and ethical with our strategic business plans to create stockholder value. governance is fundamental to our operations. Premier’s benchmarks for
inclusion and belonging. As a result, Premier We recognize that achieving our sustainability objectives was recognized by Newsweek for its commitment to creating business ethics are guided by our Board, which sets exacting requires collaboration and
engagement with our stakeholders, standards for our employees, contractors, suppliers, a diverse and inclusive workforce and fostering a culture including partners, customer and employees. Together, we rich with unique perspectives and experiences,
and was members, customers and directors. Based upon our can drive positive change and create a sustainable future for philosophy regarding the importance of sound corporate designated a Certified Age-Friendly Employer in recognition generations to
come. of our policies and practices around age 50+ workers on governance, Premier was named one of the World’s Most I want to express my sincere gratitude to our dedicated Ethical Companies by the Ethisphere® Institute for the 17th an
age-friendly or age-neutral basis. In addition, Premier employees, partners and stakeholders for your continued continued to diversify our group purchasing contract portfolio, consecutive year. Our track record of 100 percent employee support and
commitment. Your engagement and feedback education and rigorous compliance with our ethical code of growing the number of contracts with diverse and small are invaluable as we strive to lead with purpose and integrity. business suppliers (SBEs).
conduct reflects our commitment to integrity and meeting the highest ethical standards. Thank you for being a part of our journey toward a more Premier is committed to sourcing safe, effective, sustainable and equitable world. Together, we will
continue Premier is leading efforts to extend high-quality healthcare high-quality products. Premier actively strives to drive to make a Premier impact on the health of communities. business toward environmentally friendly suppliers. As part to
underserved communities. Through Premier’s industry- leading collaboratives, we partner with healthcare of that commitment, Premier collects a host of data points Sincerely, to help members pinpoint and avoid products that may professionals to
help solve critical challenges, including addressing health inequities and gaps in care delivery. By contain potentially harmful chemicals or other environmentally damaging components - information that is available before leveraging a proven
collaborative model — connecting people, data and knowledge — we help create and implement purchasing decisions are made. In addition, we vet suppliers’ safety and regulatory compliance records as part of our efficient, effective
and sustainable models for success in an Michael J. Alkire evolving industry. Of particular note, Premier’s Health Equity bid process. President and CEO Collaborative spent fiscal 2024 helping providers assess their Premier strives to reduce
our environmental impact. baseline performance across a range of indicators, leveraging October 21, 2024 Premier continually works toward sustainable operations, educational webinars, peer networking and data analysis to as demonstrated by our
environmental policy, adopted in address the root causes of inequitable outcomes, including calendar 2022, as well as our commitment to the White food insecurity, housing instability and inadequate access to House/Department of Health and Human
Services’ transportation. Health Sector Climate Pledge that aims to reduce healthcare’s carbon footprint by 50 percent by 2030.
About Us Premier at a Glance Premier is a leading healthcare improvement
00 company uniting an alliance of more than Introduction 4,350 U.S. hospitals and health systems 01 and approximately 325,000 other providers Improving Community Health and organizations to transform healthcare from the inside out. With integrated
data 02 Ethics And and analytics, collaboratives, supply chain Compliance solutions, and consulting and other services, 03 we enable better care and outcomes Our People And Culture at lower costs. We play a critical role in 04 the rapidly evolving
healthcare industry Responsible Supply Chain collaborating with members, suppliers and other stakeholders to co-develop long-term 05 Environmental innovations that reinvent and improve the way Stewardship care is delivered to patients nationwide. 06
Committed to Appendix Significant Footprint and Scale Making a Difference Transforming healthcare is more than our vision – it’s in our DNA. At Premier, we’re U.S. dedicated to ensuring better healthcare and Hospitals making a
positive impact on society. and ~325K Our mission is to improve the health of Health Other Providers >4,350 communities. We enable our member Systems and Organizations healthcare providers and other customers to deliver higher-quality healthcare
by leveraging our data and analytics capabilities, resulting in improved health outcomes and lower costs. Data on % >45 >$84B of U.S. Hospital Discharges in Annual Group Purchasing Volume 6 As of CY2023
00 Introduction 01 MISSION Improving Community Health 02 Ethics And To
improve the health Compliance of communities. 03 Our People And Culture 04 Responsible Supply Chain VISION 05 Environmental Stewardship Through the collaborative 06 Appendix power of the Premier alliance, we will lead the transformation to
high-quality, cost-effective healthcare. VALUES Focus on People Innovation Integrity Passion for Performance 7
Our Sustainability Principles Sustainability is woven throughout our
mission, culture and business practices. 00 Introduction 01 Improving Community Health Improving Community Health Our mission is to improve the health of communities. We enable our member healthcare providers and other customers to deliver
higher-quality healthcare 02 Ethics And by leveraging our data and analytics capabilities, resulting in improved health Compliance outcomes and lower costs. 03 Our People And Culture Ethics and Compliance We are committed to strong corporate
governance, ethical behavior and 04 Responsible responsible business practices that build trust and promote the long-term Supply Chain interests of our stakeholders. 05 Environmental Stewardship Our People and Culture To effectively transform
healthcare, we aim to build high-performing 06 Appendix individuals, leaders and teams through a People First culture, living our core values while maintaining high engagement and retention. Responsible Supply Chain We help our members deliver
better healthcare and outcomes at a lower cost for patients they serve by increasing the quality, efficiency, sustainability and Our Approach to Sustainability resiliency of the healthcare supply chain and leveraging our industry-leading
Premier’s sustainability strategy reflects the intersection of our mission to improve the health of technology capabilities powered by one of the nation’s largest repositories of communities and our business strategy anchored in
revolutionizing healthcare. Our approach clinical, operational and financial data. is centered on the environmental, social and governance (ESG) topics most critical to our stakeholders and guides how we aim to make a positive impact for our
communities, employees, Environmental Stewardship partners, suppliers and the environment – collectively, the power of the Premier impact. We We both pursue eco-friendly practices throughout our operations and advance believe that our
long-term financial success and our sustainability strategy are interdependent solutions to help our members minimize their environmental footprints. and start with our unique culture – one that is committed to making a difference in all that
we do. Creating Sustainable Value Our core sustainability principles are embedded in how we operate and empower our members and other customers to deliver better healthcare, advance social responsibilities and improve environmental impacts. Our
execution upon these principles reinforces our commitment to achieving our goals of creating long-term value for our stakeholders, achieving sustainable business success and, ultimately, improving the health of our communities. 8
We interact with a wide range of stakeholders Identifying Our Priorities
Learning from Our Stakeholders on a regular basis, including investors, Materiality Assessment customers, suppliers, community members, In FY2022, we identified the material non- regulators and nonprofit organizations. We financial factors
designated by our business Healthcare Provider Members and Other Customers 00 value stakeholder views and insights and Introduction Engagement Methods and our stakeholders as important for Industry Conferences, Newsletters, Surveys, Forums and
Advisory Groups believe that ongoing positive, multidirectional Premier’s long-term success and positive 01 Sustainability Topics conversation builds informed relationships Improving impact. The findings from our assessment Community Health
Product Quality and Safety, Climate Change and Environmental Risks, Supply that promote transparency and accountability. continue to guide our strategic deployment of Chain Resiliency and Diversity, Customer Privacy, and Business Continuity 02 As
part of our overall stewardship resources companywide and refinements of Ethics And Group Purchasing Organization and Direct Sourcing Suppliers Compliance engagement efforts, we meet with our programs as needed. We plan to refresh Engagement Methods
Committee Gatherings, Industry Conferences and In-Person Meetings stockholders to discuss our sustainability this analysis periodically as needed based on 03 Our People Sustainability Topics practices and initiatives. We develop a the evolution of
our business. And Culture Sustainable Sourcing, Supply Chain Diversity, Environmental Considerations, proactive stockholder outreach program on an Please see the Appendix for a complete Human Rights and Cybersecurity 04 annual basis, structured
based on the periods Responsible list of definitions for these 24 high-priority Supply Chain Employees between our annual stockholder meetings. sustainability factors. Engagement Methods Our stockholder engagement team includes a 05 Ongoing Surveys,
Newsletters, Employee Resource Groups and Team Meetings Environmental Stakeholder Engagement director who sits on both the Compensation Stewardship Sustainability Topics We believe that creating value for all Workplace Flexibility; Benefits;
Diversity, Equity, Inclusion and Belonging; Committee and Nominating and Governance 06 and Professional Development stakeholders – both internal and external Committee of the Board of Directors as well as Appendix – is critically
important for our long-term management from finance, human resources Community Members And Nonprofits Engagement Methods business success. To better understand and investor relations. Since our 2023 Annual Meetings, Networking Events, Partnerships,
Surveys, Philanthropic Support our stakeholders’ feedback, we actively Meeting of Stockholders, we engaged in and Employee Volunteerism engage and consult with individuals, groups outreach to stockholders representing Sustainability Topics and
organizations that are impacted by our Healthcare Improvements, Economic Empowerment and Health Equity nearly a majority of our outstanding shares business operations. Their collective input of common stock as of March 2024 (the Investors helps
inform the Board of Directors (Board) Engagement Methods reference for our most recent outreach Industry Conferences, Earnings Calls, One-On-One Meetings and Website Disclosures and executive team’s strategy for identifying program), leading
to meetings with holders Sustainability Topics and managing our sustainability priorities, of more than a third of those outstanding Climate Change, Cybersecurity And Data Privacy, Executive Compensation risks and opportunities. shares. These recent
and past stockholder and Board Composition, Talent Management, and Employee Diversity engagement meetings have helped shape Regulators And Advocates our thoughts on our compensation principles, Engagement Methods programs and governance practices as
well In-Person Meetings And Written Communication With Legislators, Regulators and Key Government Decision-Makers our our related disclosures. Sustainability Topics Healthcare Policies and Regulations 9
Governance Sustainability The Nominating and Governance Committee About
This Report (NGC) has primary responsibility for ESG Our Board and its standing committees work oversight, and periodically reports and makes This report covers the progress of our closely with our executive leadership team recommendations to the
full Board regarding sustainability strategy and initiatives during to oversee effective governance of the 00 Introduction ESG-related matters. our fiscal year ending June 30, 2024 environmental and social risks inherent in our (FY2024). We have
aligned our report with business model and industry. 01 Improving the Sustainability Accounting Standards Community Health Board (SASB) Standards — now part of the 02 International Financial Reporting Standards Sustainability Oversight Ethics
And Compliance Foundation — related to Health Care Distributors and to relevant topics from 03 Our People the Medical Equipment and Supplies and And Culture the Software and IT Services industries. Board of Directors 04 We also identified
several UN Sustainable All enterprise risk management of ESG-related areas (strategic, operational, Responsible financial, legal, information technology and reputational). Supply Chain Development Goals (SDGs) that we believe are supported by our
business activities and 05 Environmental key priority areas. Stewardship Board of Committees Unless otherwise noted, all quantitative 06 Nominating and Governance Appendix company data provided throughout this Oversight of corporate governance and
primary oversight of ESG programs and policies, report covers FY2024, reflecting data for progress towards goals, external disclosures and reporting, and stockholder concerns, emerging issues and providing periodic updates and recommendations to the
Board. the period from July 1, 2023, through June 30, 2024. Some information corresponds Audit and Compliance to the calendar year period of Jan. 1, 2023, Oversight of financial, legal and regulatory compliance, including cybersecurity and ethical
risks, and review of any required disclosures of ESG-related metrics. through Dec. 31, 2023 (CY2023), and is noted as such. We have also included certain Compensation subsequent initiatives that occurred after the Oversight of human capital
management as well as our diversity, equity, inclusion and belonging (DEIB) initiatives, including compensation programs and policies end of FY2024 and have noted them as such. relating to ESG matters. Throughout the report, we also guide readers to
additional sources of information on our corporate website, in our SEC filings and on Management Responsibilities other websites for convenience. ESG Steering Committee Please note that footnotes and citations Key role in championing and governing
our overall sustainability strategy and priorities. Composed of cross-functional leaders, including six members of the executive leadership are provided in the Appendix section of team, who meet quarterly to develop and drive Premier’s
sustainability objectives. The this report. ESG Steering Committee provides periodic updates to the NGC on our sustainability program emerging trends and stakeholder engagement. 10
Improving Ethics and Our People Responsible Environmental Community
Compliance and Culture Supply Chain Stewardship Health Named one of the World’s Continued to streamline our Grew diverse and ® Most Ethical Companies Scope 1 and 2 greenhouse small-business contracts in our gas assessments. group
purchasing organization 77^ (GPO) contract portfolio. th $187,816 Achieved an employee 17 Donated through our Social engagement score of 77, above the Responsibility Program, plus consecutive year global benchmark score of 74. Began assessing
relevance and materiality of Scope 3 emission categories. President and CEO, Mike Alkire, appointed to the Supply Chain $100K Working Group for the National Benchmarked our ethics and for our Premier Cares Award. Introduced Business Resource
Academies of Medicine Action compliance program through Groups (BRGs) to gather Collaborative on Decarbonizing an independent third party. Commenced climate individuals with similar expertise the U.S. Health Sector. resilience planning efforts. and
further incorporate DEIB into our business strategy. Named Blazer winner of the 2024 Charlotte Inno Fire Awards in the Health directors Care category for advancing reported as racially/ health equity and access Enhanced employee benefits ethnically
to care for diverse patient for family support, financial diverse. 44 populations across the U.S. well-being, professional development and healthy living. Advocated for federal policies to address underlying social and economic inequities and reduce
healthcare’s carbon footprint. FY2024 HIGHLIGHTS
2024 World’s Most U.S. News & World Report ® Ethical
Companies Healthiest Employers Premier and Honoree by Best Companies of Greater Charlotte by ® Ethisphere our leaders were to Work for Charlotte Business Journal recognized in many st 2023 - 2024 2023, 1 Place ways this past year, th 17 and we
are proud to consecutive year share a few awards Healthiest 100 Workplaces in America’s Greatest ® and recognitions here. America by Healthiest Employers Workplaces for Diversity 2024 by Newsweek To learn more, please st 2023, 1 Place see
the Awards and Recognition section of our website. Cigna Healthy Workforce Best in KLAS for Designation™ Gold Level Recipient Value-Based Care Consulting 2023 2024 AWARDS AND RECOGNITION
01 IMPROVING COMMUNITY HEALTH Our mission is to improve the health of
communities. We enable our member healthcare providers and other customers to deliver higher-quality care by leveraging our data and analytics capabilities, resulting in improved health outcomes and lower costs. > Improving Patient Outcomes and
Lowering Costs > Advocacy to Improve Community Health > Improving Health Through Community Development
We aim to lead the transformation to high-quality, cost-effective
healthcare by supporting care for people who 00 Introduction have been historically marginalized Premier continues to evolve 01 using a multifaceted approach that Improving Community Health to address changing health incorporates our business
solutions, 02 Ethics And healthcare advocacy and community industry dynamics and Compliance development efforts. provider needs. 03 Our People And Culture 04 Responsible Supply Chain Advancing Health Outcomes 05 Improving Patient Through Research,
Collaboration Environmental Stewardship and Innovation Outcomes and Premier’s Strategic Collaboratives Premier believes in the power of collaboration 06 Lowering Costs Appendix ® to improve the health of communities. Our 100 Top Hospitals
Premier plays a critical role in the rapidly Focuses on sharing, comparing and improving performance to achieve the highest members represent many of the country’s evolving healthcare industry by collaborating standards of care. most
progressive and forward-thinking with members to co-develop long-term Bundled Payment healthcare organizations, whose experience innovations that reinvent and improve the Assists hospitals and health systems to provide consistent gives us additional
insights into industry and sustainable high performance. way care is delivered to patients nationwide. challenges and innovative best practices that With our differentiated combination of Health Equity we can share broadly. Supports efforts to
reduce health disparities in local communities. integrated data and analytics, collaboratives, Through Premier’s industry-leading strategic supply chain capabilities, and advisory Perinatal Performance Improvement collaboratives, we partner
with hospitals, Aims to transform the quality, safety and cost of maternal and infant health using analytics. and other services, we believe that we are health systems, clinically integrated networks uniquely positioned to enable better care and
Population Health Management and healthcare professionals to help solve Helps provider organizations strategically design, build and execute effective value-based outcomes and improve the overall patient payment and care delivery strategies. the
critical problems they face. By leveraging experience at a lower cost. a proven collaborative model – connecting Physician Enterprise people, data and knowledge – we help Blends data sharing, transparency, policy advocacy, shared
learning and cohorts to advance the needs of health systems. create and implement efficient, effective and sustainable methods for success in a dynamically evolving industry. 14
Advancing Health Outcomes through Research, Collaboration and
Innovation years of quality, cost and Spotlight Harnessing Healthcare operational data points Data to Make Actionable >20 Decisions in Real Time Advancing Health Outcomes through Research, Collaboration and Innovation To strengthen our ability to
have a positive impact on community health, we apply our comprehensive of U.S. hospital Supporting the PINC AI™ technology and services platform. Our discharges platform houses more than 20 years of quality, cost Health of Historically and
operational data points gleaned from more than >45% Underserved Patients 45% of U.S. hospital discharges, approximately 2.7 billion hospital outpatient and clinic encounters, Collectively leading the way in improving the delivery of care for 1
and nearly 177 million physician office visits. With a all patients is paramount. Premier’s Health Equity Collaborative leading network of provider organizations, the PINC hospital outpatient helps member healthcare organizations not only meet
the new AI™ platform accelerates ingenuity and serves as a and clinic encounters Centers for Medicare & Medicaid Services (CMS) mandates large-scale innovation catalyst in healthcare through ~2.7B but also influence future policy through
innovative analytics, evidence-based and population-based analyses of assessments and knowledge sharing. Through this collaborative, drugs, devices, treatments, disease states, healthcare efforts are focused on providing data our members need to
economics and clinical outcomes. address the health equity issues pertinent to the communities Our PINC AI™ solutions deliver robust, real-world data they serve. Health Equity Collaborative members participate in a physician to drive informed
decisions that are actionable to baseline assessment, educational webinars, peer networking and office visits improve quality, lower costs, reduce risks and help data analysis to address the root causes of inequitable health- ensure patient safety.
~177M related outcomes, such as food insecurity, housing instability and inadequate access to transportation. Advancing Health Outcomes through Research, At Premier, we understand that Collaboration and Innovation truly transforming the health of
communities requires a collaborative Premier Named group of healthcare leaders unified in understanding how social drivers affect 2024 Blazer Winner the quality of patient care. With detailed Premier’s PINC AI™ Applied Sciences (PAS) was
named the Blazer winner knowledge of the needs of underserved of the 2024 Charlotte Inno Fire Awards in the healthcare category. PAS populations, members can make positive was recognized for advancing health equity and access to care for diverse
changes to improve equitable health patient populations across the U.S. and leading the charge to eliminate outcomes for all. disparities in care. For example, working together with our partners, PAS has been applied to increase diversity and equity
in clinical trials and to Madeleine Biondolillo Vice President, Academic Initiatives and Strategic Collaboratives make healthcare safe and equitable for mothers and babies.
Aligning Policies with • Extending add-on payments to hospitals
To gain insights into health disparities and Advocacy to Improve Environmental Principles that serve rural communities. effective methods of tackling them, Premier Community Health • Extending funding for critical public We work to shape
federal policies to better is advancing health equity via standardized health programs, including community prepare hospitals and other providers for the Every day, Premier works to shape laws and data collection and incorporation of SDOH 00 health
centers and the National Health Introduction impact of climate change and propel efforts regulations that reflect our commitment to in federal quality measurement programs. Service Corps. to reduce healthcare’s carbon footprint. To improving
the cost, quality and safety of Premier has provided recommendations to the 01 Improving this end, Premier continues to work toward healthcare and advancing our mission of HHS Office for Civil Rights on ways to remove Reducing Risks in the Community
Health fulfilling the Health Sector Climate Pledge Healthcare Supply Chain improving the health of communities. We barriers that keep people with disabilities from 02 launched by the White House and the educate federal lawmakers and the executive
living up to their full potential and accessing Premier has worked closely with Congress Ethics And Compliance Department of Health and Human Services branch about our members and business federal assistance. and the Administration to advance
policies (HHS), which commits us to reducing our and the issues that affect our industry. that create greater resiliency in the supply 03 Premier is also working with Congress and Our People greenhouse gas emissions by 50% by 2030 Our Government
Affairs team based in chain and to develop a more robust national And Culture other policymakers to advance data-driven and achieving net-zero emissions by 2050. Washington, D.C., acts as an advocate for our strategy to prepare for and respond to
policies that help solve poor outcomes and 04 Premier is also advocating for federal policies members and the communities they serve. future national public health emergencies. In Responsible disparities in maternal-infant care. Premier Supply Chain
to support healthcare providers’ efforts FY2024, Premier has continued to advocate plans to leverage data and outcomes from Our Advocacy Efforts to reduce their carbon footprints through for additional policies to modernize the 05 the HHS
Perinatal Improvement Collaborative, Environmental We pursue our advocacy efforts by meeting incentives to drive greener choices. Since nation’s supply chain data infrastructure and Stewardship calling for research designed to lead to with
lawmakers and federal administration the implementation of the Inflation Reduction incentivize domestic manufacturing, among clinical action and broader implementation of 06 staff; activating our members to reach out Act, Premier has educated our
members Appendix other priorities. evidence-based interventions and treatment to their lawmakers through our Government on how they can take advantage of the models to address maternal mental health. Advancing Technology Adoption to Affairs Network,
which is composed of federal tax credits available to nonprofit Improve Outcomes and Lower Costs Expanding Access to executives from our member healthcare healthcare organizations to advance their Premier advocates for policies to advance Medically
Underserved and providers; and working through our Employee decarbonization and sustainability efforts. technology that will enhance patient safety Vulnerable Populations Political Action Committee (PAC). Premier Premier was also instrumental in
shaping and quality care, facilitate secure and timely During FY2024, Premier was instrumental in continues to pursue policies outlined in our the Environmental Protection Agency’s new communication and data exchange among advancing
legislation that was signed into th Advocacy Roadmap for the 118 Congress ethylene oxide (EtO) emission standards healthcare stakeholders, and produce law that helps bridge the care gap, reduce with a bipartisan, holistic approach to for medical
device sterilizers to better actionable and reportable data. Premier is disparities in care and support healthcare optimizing the value of healthcare, building balance the need to protect the environment engaged in multiple efforts with Congress
providers’ efforts to advance effective resiliency healthcare supply chains, tech- and enhance environmental stewardship and the Administration to promote home-based care options for underserved enabling healthcare and eliminating gaps in by
reducing EtO emissions by 90% while the principles outlined in our strategic communities and populations by: healthcare. The Government Affairs team preventing medical device shortages and advocacy roadmap for artificial intelligence •
Protecting Medicaid disproportionate- reports directly to Premier’s Board every downstream impacts to patient care. in healthcare, which call for responsible share hospital payments to help quarter on its policy focus and progress. Advancing
Health Equity and Social development and implementation of artificial ensure patients have access to critical Determinants of Health (SDOH) We highlight a selection of notable advocacy intelligence tools to empower providers and community services.
initiatives over the past year, as follows. Premier is advocating for federal policies to patients, improve clinical and operational • Extending telehealth flexibilities granted address the underlying social and economic efficiency, and
minimize risk. during the pandemic that allow providers For more information, please see the inequities, as well as systemic barriers to meet patients where they are. Policy section of our website. and biases, that drive disparities in care.
16
Corporate Gift Matching Improving Health Employees may donate a minimum
of $50 to Through Community Spotlight an eligible charitable organization or disaster Development relief fund to receive a 50% matching gift, 00 Introduction up to $2,500 per employee per fiscal year. In alignment with Premier’s mission, we
Our Advocacy Efforts 01 ERG Social Responsibility Initiatives drive coordinated organizational community Improving Community Health development initiatives to address the root Our ERGs champion efforts to support FY2024 Success Milestones causes of
SDOH disparities, such as social nonprofits serving those with hardships 02 The federal government finalized changes to its collection standards for race and ethnicity Ethics And justice, education, nutrition, poverty, maternal such as cancer, heart
disease, family trauma Compliance data that Premier had weighed in on to better reflect changes in the U.S. population and health and homelessness. Through financial or child trafficking. evolving needs and uses for data. 03 donations and employee
volunteering, we Monthly Giving Goodwill Donations Our People As called for by Premier, CMS moved forward with the addition of new billing codes for And Culture support various nonprofits dedicated to Employees may contribute through a monthly
caregiver training and services associated with SDOH. improving community health. Giving Goodwill payroll deduction to support 04 The HHS Office for Civil Rights finalized a rule that Premier advocated for to protect Responsible an
employee-nominated, national healthcare- Supply Chain Social Responsibility Program recipients of federal financial assistance, such as Medicaid and the Children’s Health related charitable organization. Insurance Program, from being
discriminated against on the basis of disability. Since launching our Social Responsibility 05 Environmental Program in 1998, Premier employees have Stewardship supported local and national organizations, 06 global nonprofits and each other through
Appendix Social Responsibility Program Social Responsibility Program various volunteering efforts and financial donations. Our employee-driven programs Giving Goodwill Giving Back With Time and Expertise support nonprofits through our employee
Donations to Support Community Health volunteerism, corporate matching, Employee In CY2023, our employees donated to the Resource Groups (ERGs) and a monthly Giving Premier’s volunteer efforts following employee-nominated, national Goodwill
donation program. support several organizations healthcare-related charitable organizations: local to our headquarters in How We Give Back to Our Communities January – The ALS Association Charlotte, North Carolina, Employee Volunteering
February – American Heart Association that address social impact Each employee is provided up to four hours March – Cancer Commons initiatives, such as health of paid time off to volunteer quarterly. equity, food insecurity, April
– LOVE146 homelessness and mental For every eight hours an individual May – Rainbows for All Children health. In particular, many employee volunteers during non-work hours, June – Scleroderma Foundation employees donate their time
Premier donates $100, up to a maximum of July – MyGOAL and strategic expertise to $200 per employee per fiscal year, to the August – Alveolar Capillary Dysplasia Association provide leadership support charitable organization. September
– National Pediatric Cancer Foundation as mentors, committee members or board members October – Scott Hamilton Cares Foundation to nonprofits that advance ® November – Wounded Warrior Project community health. December –
Mercy Ships 17
Improving Health Through Community Development PUTTING OUR MISSION INTO
ACTION Our corporate culture is focused on doing our part to directly improve the health of the communities where we live and operate. We believe that our commitment to support nonprofit organizations to help the underserved is a corn erstone of our
mission and social responsibility.
Premier Cares Award The Premier Cares Award recognizes stand- Spotlight
alone community organizations and health CourageLIVES Bangor, ME organizations that are dedicated to helping 00 Introduction the medically underserved. The award has Premier Cares Award been presented each year since 1991, when 01 Improving it was
created by Dr. Monroe E. Trout, former Making a Community Health CEO of American Healthcare Systems, one Premier Impact 02 of our heritage organizations. This annual Ethics And Compliance by Giving Back award of $100,000 is given to a community
organization that is providing creative 03 Premier donated $100,000 for the Our People solutions to improve health for vulnerable And Culture Premier Cares Award and, together populations dealing with hardships such as with our employees, donated a
04 Responsible limited healthcare access, drug abuse, human total of $187,816 to charitable Supply Chain trafficking or homelessness. organizations worldwide through 05 our Social Responsibility Program, This year, CourageLIVES was awarded with
Environmental Stewardship including support for disaster the Premier Cares Award. CourageLIVES relief after the Maui wildfires and provides a community-based, comprehensive 06 Appendix humanitarian support within the support system for those
affected by human Middle East. In addition to providing trafficking, exploitation, sexual/domestic monetary support, our employees violence and other abuse. volunteered a total of 1,202 hours during FY2024. Premier Cares Award Winners 2024 -
CourageLIVES 2021 - Community Enhancement Collaboration, Inc. A nonprofit program supporting survivors of A nonprofit dedicated to eradicating human trafficking and violence. food insecurity. 2023 - Aging Gracefully 2020 - Call to Freedom A
nonprofit program dedicated to making homes A nonprofit focused on navigating a healthy safer for low-income adults over the age of 65. path for victims of human trafficking. 2022 - The BreakAway 2019 - Lifehouse Maternity Home A nonprofit to help
women recover from the A nonprofit for high-risk pregnant women disease of addiction. and their babies. 19
02 ETHICS AND COMPLIANCE We are committed to strong corporate
governance, ethical behavior and responsible business practices that build trust and promote the long-term interests of our stakeholders. > Corporate Governance > Enterprise Risk Management and Business Continuity > Cybersecurity Risk
Management and Data Privacy > Political Contributions
Corporate Compliance Program auditors measure the effectiveness of our
Premier’s Board and executive leadership Corporate Compliance Program, including Our Board, executive leaders, and team play a critical role in promoting and related policies and procedures. The Chief the Legal and Corporate Compliance
Administrative and Financial Officer, in maintaining a culture of integrity. departments collaborate to maintain 00 Introduction collaboration with both the Chief Ethics Premier’s compliance with ethical and Compliance Officer and General
Counsel, standards, regulatory requirements and 01 Improving develops the annual audit plan and its the certification needs of our business. The Community Health associated risk management and work plans. Audit and Compliance Committee (ACC) to
ensure compliance with the latest Corporate 02 Premier’s compliance monitoring is designed of the Board is responsible for high-level regulatory requirements and best practices Ethics And Compliance to ensure that whatever corrective actions
are Governance oversight of our Corporate Compliance as part of our corporate risk assessment. implemented are ongoing and in accordance Program with respect to implementation Integrity and trust form the basis of 03 For more information related to
Premier’s Our People with the specific issues that were identified. and the ongoing effectiveness of the successful business operations and And Culture corporate governance practices, please program. The ACC remains informed about support our
business relationships and During FY2024, we benchmarked our see our Governance Documents. 04 regulatory enforcement activities and other Responsible endeavors. It is of vital importance that we ethics and compliance program through an Supply Chain
Board Composition governmental compliance programs and abide by the highest ethical standards, as independent third party. This benchmarking Our Board is composed of talented and receives quarterly updates from the Chief 05 our continued success
depends on adhering typically is completed every two years and our Environmental dedicated directors with a diverse mix of Ethics and Compliance Officer. Stewardship to rigorous principles of ethics and legal next assessment expected in early
FY2026. experience, skills and backgrounds that business practices to fulfill our mission to Premier works with third-party auditors to 06 reflect the strategic needs of our business Appendix improve the health of communities and assist us in the
detection and prevention of and the nature of the environment in which transform healthcare. compliance concerns. In addition, internal we operate. We believe diversity on our Board Board Oversight also helps to advance the diversity of our At
Premier, integrity is the foundation for corporate leadership and our overall strategy all business operations. And it begins at the for diversity, equity, inclusion and belonging. highest level of our company. Our Board sets high compliance and
ethics standards for itself, management and Premier workforce members, including contractors. Board of Directors | 9 Directors These standards are embedded in our Code of Conduct and are extended into our Board Diversity: Average Board Tenure:
Average Board Member Age: business core practices, which fuels sound corporate governance. 66 Our corporate governance practices are >5 years 33% 7 Female established, monitored and regularly assessed by our Board, with assistance from the Board
Members 11% with ESG Skillset: Nominating and Governance Committee Ethnic 44% <5 years Minority DIVERSE (NGC). At least annually, we assess our 2 corporate policies, programs and initiatives 3 21
laws that protect employees against unlawful Code of Conduct (GPO
Code). All sourcing Code of Conduct discrimination or retaliation as a result committee and advisory subcommittee and Compliance Education of lawfully reporting a concern. Premier members receive education annually on our Spotlight Premier maintains
a Code of Conduct (Code) prohibits any employee from being subject GPO Code, Confidentiality Policy, Conflict that applies to all workforce members and 00 to harassment, loss of employment, or of Interest Policy and Insider Trading Policy.
Introduction directors. Workforce members who violate our Corporate Compliance Program disciplinary or retaliatory action as a result of During CY2023, 100% of directors and Code may be subject to disciplinary action, up 01 the submission of a
compliance concern or committee and subcommittee members Improving to and including termination of employment, Recognized For Community Health issue regarding potential violations of laws, completed this education and related subject to applicable
laws. Our Commitment regulations or company policies. acknowledgments. 02 Ethics And For more information on the Code as well as to Ethical Business Compliance Investigation of complaints received through Anti-Bribery Policy related ethical business
policies – including our ethics hotline are conducted under the Practices Premier has an Anti-Bribery Policy in place 03 conflicts of interest, confidentiality and Our People direction of the Chief Ethics and Compliance that outlines our
strict prohibition against And Culture Premier was named one of the World’s Most human trafficking – please see the Ethics Officer, while complaints submitted to ® th bribery and that applies to all employees Ethical Companies for
the 17 consecutive and Compliance and Corporate Governance 04 ® our Human Resources department are year by the Ethisphere Institute, a global in connection with all aspects of our global Responsible sections of our website. Supply Chain leader
in defining and advancing the investigated under the direction of our Chief work. Employees are required to comply with All employees complete compliance standards of ethical business practices. Human Resources Officer. When appropriate, the Foreign
Corrupt Practices Act and other 05 We were selected for this honor from among Environmental education upon hire and annually thereafter the chair of the ACC and General Counsel applicable anti-bribery laws. Failure to comply Stewardship tens of
thousands of companies around the that provides an overview of our Code. The collaborate with these officers in conducting with this policy will result in disciplinary world in recognition of our commitment to 06 CY2023 course included compliance
content and assessing investigations. When Appendix action, up to and including termination of integrity and meeting high ethical standards about conflicts of interest, anti-bribery and complaints are corroborated, appropriate in business conduct.
employment. Premier keeps accurate and speaking up. During CY2023, 100% of our corrective action is taken, up to and including complete records of all transactions and has employees completed this education, which termination from the company.
policies and procedures in place designed includes attestation that they recognize and to ensure that no unauthorized transactions For more information on these procedures, understand the Code. occur, including those related to travel please see our
Whistleblower Policy Employees also complete annual expenses, political contributions, and gifts and the ACC charter. compliance education on fraud, waste and and entertainment. Employees read and abuse, data privacy and various security attest to
their understanding of Premier’s topics, the Health Insurance Portability Anti-Bribery Policy upon hire and annually Corporate Compliance Program and Accountability Act (HIPAA), substance thereafter in connection with the Corporate use
disorder regulations, and state privacy Compliance Program. Leading Ethical Conduct laws. During CY2023, 100% of employees Whistleblower Policy Across Our Industry completed this required education. The Board’s ACC established a Whistleblower
We are a founding member of the Healthcare Group Our Board directors annually attest to Policy that includes our confidential and Purchasing Industry Initiative (HGPII), a voluntary their compliance with the Board Code of anonymous reporting
helpline designed to association dedicated to the ethical conduct and Ethics, Board Conflict of Interest Policy and promote open communication of concerns business practices of group purchasing organizations. Disclosure Statement, Anti-Bribery
Policy, regarding potentially unethical or illegal For more information, please see our most recent Human Trafficking Policy, Insider Trading activities. Premier complies with all applicable Annual Compliance Report and the HGPII website. Policy,
and Group Purchasing Organization 22
Premier’s continuity-focused programs under the disruption, along
with managing critical • Common language and standards Enterprise Risk the CMP are as follows: across enterprise functions, increasing business functions and member services Management and collaboration, coverage, rigor, consistency •
Information Security Incident Management during, and after, a disruption. Response team in management and reporting. • IT Application Disaster Recovery members participate in regularly scheduled Business Continuity 00 • Corporate
Emergency Preparedness and exercises and program training to ensure Introduction Our Board plays an active role in overseeing Through a risk management approach that Response Premier’s preparedness during disruptions of the management of our
risks. The committee continuously assesses and improves our 01 • Supplier and Member Disaster varying scales. Improving structure of the Board supports and promotes information technology and cybersecurity Preparedness and Response Community
Health effective enterprise risk management (ERM) risk deterrence capabilities, our Information • Supply Chain Disruption 02 and oversight. Security, Privacy, Risk Management and • Clinical Laboratory Services Infectious Ethics And
Compliance Corporate Compliance groups have formed a Disease Outbreaks Enterprise Risk Management functional collaboration to provide leadership 03 Our Board retains ultimate oversight of ERM Our People and oversight when managing privacy, And
Culture and remains informed through regular reports compliance and cybersecurity risks. and updates, including a standing ERM 04 Responsible Business Continuity update at every quarterly board meeting. Supply Chain and Disaster Recovery
Furthermore, each Board committee evaluates 05 Our Continuity Management Program (CMP) and oversees the management of risks within Environmental Stewardship was instituted to ensure Premier has the its area of responsibility. In addition, our
necessary preparations and protocols in place 06 Board and its standing committees receive Appendix to manage events impacting the operations regular reports from our President and Chief of Premier employees, contractors, suppliers Executive Officer
(CEO), Chief Administrative and/or members. The CMP’s intent is to and Financial Officer, General Counsel, Chief create an enterprise-wide view of Premier’s Ethics and Compliance Officer, and other continuity management activities and
provide members of our leadership team regarding a framework to use in advance of, during and areas of significant risk. For more information immediately after any event. about the roles and responsibilities of the Board’s standing committees,
please see The CMP encompasses all event types, our Proxy Statement for our 2024 Annual including natural disasters, supply chain Meeting of Stockholders. disruptions and other emergencies. Premier’s CMP scope and continuity/recovery Premier
has established a robust framework capabilities are validated through third-party and continues to build our sustainability- audits and regular tabletop exercises involving conscious ERM program, enabling: response teams, response leadership, and
key • Thorough organizational knowledge of executives and Board members. Additionally, sustainability, promoting the capture of program methodology and response emerging sustainability risks. procedures are reviewed on an annual basis. •
Assessments of sustainability opportunities as well as risks. Under the umbrella of the CMP, assigned • Measurement (qualification and response teams are responsible for containing 23 quantification) of sustainability risks.
Cybersecurity Framework contractually responsible for informing us of
In addition, management updates the Cybersecurity Risk and Education ACC as necessary regarding any material potential security breaches. Our information Management Premier applies our DRM program and cybersecurity incidents, as well as any
technology systems did not experience framework to provide common internal control cybersecurity incidents with lesser potential any data or other breaches during FY2024 and Data Privacy 00 criteria (policies, control objectives, standards impact.
The full Board receives updates from that we believe had a material adverse Introduction We rely on digital technology to conduct and guidelines) as mapped to regulatory the ACC on its oversight of cybersecurity risk effect on our business strategy,
results our business operations and engage with 01 2 and contractual control obligations and the on a quarterly basis, or more frequently as of operations or financial condition. Improving our members and business partners. Community Health business
capabilities necessary to achieve needed. In addition, the full Board receives Certifications and Premier’s Board and leadership team are organizational objectives. Leveraging the 02 periodic briefings from management on Third-Party Audits
committed to ensuring that information Ethics And DRM program enterprise control framework, Compliance the digital risk and security program. High-quality and objective assessments security risks are adequately managed and Premier continually and
proactively identifies, At a management level, our Chief Information are critical to the continued effectiveness that appropriate procedures are applied 03 assesses, mitigates, reports and monitors Our People Security Officer (CISO), Chief Privacy
Officer of cybersecurity controls. As a part of the throughout the organization to effectively And Culture security risks across the company. Premier’s (CPO) and VP of Risk Management and independent verification process, third- monitor,
mitigate and respond to cyber digital compliance monitoring is designed 04 Compliance (VPRMC) work in collaboration party auditors examine Premier’s end-to- risks, threats and incidents. Please also see Responsible to ensure that corrective
actions are Supply Chain as our Digital Risk Management (DRM) group end security practices — including data our current 10-K for additional information implemented and maintained in accordance and have primary responsibility for our centers,
infrastructure and operations — at on our approach to cybersecurity. 05 with the specific issues that were identified. Environmental digital risk and security program, including a regular cadence. We routinely engage Stewardship Cybersecurity
Governance We also promote a strong culture of assessing, identifying and managing material with a licensed third party to perform a and Oversight 06 security awareness among our employees cybersecurity risks and reporting relevant comprehensive
assessment of our controls, Appendix The ACC of the Board oversees the through ongoing education and regular information to our executive leadership team. capabilities and programs against stringent development, implementation and communication. We
have a formal Security Through a risk management approach that standards, such as the following: effectiveness of our strategies to monitor, Awareness Training Program for all employees continually assesses and seeks to improve • Federal
Information Security mitigate and respond to cybersecurity that addresses purpose, scope, roles, our information technology and cybersecurity Management Act (FISMA) risks, as well as our procedures, policies responsibilities and management
commitment. risk-deterrence capabilities, our Information • System and Organization Control 2 Type 2 and resources for risk assessment and This education, including “phishing” exercises, Security, Privacy, Risk Management and
• System and Organization Control 1 Type 2 risk management. The ACC receives is provided at orientation and at least • Payment Card Industry Data Corporate Compliance groups have formed regular updates from management on our Security
Standard annually thereafter for all employees. During a cross-functional collaboration to provide cybersecurity management, including the • Sarbanes-Oxley Act of 2002 CY2023, 100% of employees completed our leadership and oversight when
managing our results of risk assessments and audits and • HIPAA Security Risk Assessment Security Awareness Training Program. privacy, compliance and cybersecurity risks. the progress of risk-reduction initiatives. and Gap Analysis Incident
Response Policy Our Security Assessment Report and Security Our CISO oversees our Response Policy for Compliance Letter of Attestation. These the identification and escalation of security documents serve not only as prima facie breaches and other
cyber incidents. The evidence of our security measures but also policy details guidelines for incident response as official attestation that a comprehensive and communication responsibilities. We assessment was performed based on criteria regularly
test and evaluate the effectiveness relative to FISMA; Office of Management of this policy as part of our cybersecurity and Budget Circular A-130, Appendix III, assessments, and our customers are 24
Data Privacy monitored and reassessed depending on Security of Federal
Automated Information Resources; National Institute of Standards risk level and our cybersecurity practices, As part of our services and solutions offered and Technology (NIST) Special Publication considering evolving cybersecurity standards to
customers, we collect and process various 800-37, Guide for the Security Certification and legal and regulatory requirements. types of data. This data is used to provide 00 Introduction and Accreditation of Federal Information certain contracted
services and is collected, Safeguards for Artificial Systems; NIST Special Publication 800- stored and maintained in accordance with Intelligence Risks 01 Improving 53A, Assessing Security and Privacy applicable privacy laws and regulations.
Community Health We see artificial intelligence (AI) as a Controls in Federal Information Systems and Certain of our customer agreements provide transformative technology with substantial 02 Organizations; and NIST Special Publication for secondary
data rights, such as permitting Ethics And promise for improving healthcare. However, Compliance 800-53, Security and Privacy Controls for the de-identification of protected health AI systems pose unique risks because Information Systems and
Organizations. information, which is done in accordance 03 their inputs and operations are not always Our People with HIPAA. Our Privacy Policy addresses And Culture Security Assessment and visible. The new and unique risks presented the use and
disclosure of data collected Compliance for Third-Party Vendors by AI systems and technologies will 04 outside our customer agreements, including Responsible Prior to onboarding third-party vendors, need to be addressed in Premier’s GPO Supply
Chain the requirements of the California Consumer we ensure that such vendors are reviewed contracts as the development and use of Privacy Act and other applicable state privacy 05 by our CPO, CISO and VPRMC; complete AI in the healthcare setting
increases. Environmental laws, such as the categories and types of Stewardship a standard security questionnaire; and To help address these risks, Premier’s Digital personal information we may obtain, what provide attestations from objective,
06 Risk and Compliance team incorporated Appendix we do with that data, with whom we share it reputable and licensed assessors as to the an AI standards and expectations section and its related purpose. We also continuously caliber of the
vendor’s security controls within our GPO supplier agreements during monitor the legal and regulatory landscape to relative to stringent industry standards that FY2024. We also have an internal generative ensure that we are compliant with new
and are appropriate to their access privileges AI (GenAI) policy, which requires approval changing privacy-related laws and regulations and scope of services provided. of any GenAI tool before use and specifies that may be applicable to our
business. We have implemented controls designed examples of those that are not approved for For more information, please see our to identify and mitigate cybersecurity employee use. We will continue to review Privacy Notice on our website. threats
associated with our use of third- and update the standards and our approach party service providers, suppliers and other to AI to help ensure safe integration of vendors. We use a variety of inputs in such this technology into our business. Please
risk assessments, including information see our 2023 Annual Compliance Report supplied by vendors and, in some cases, for more information on the main areas attestations from objective, reputable and of focus within Premier’s AI standards.
licensed assessors. When appropriate, our contracts with vendors require agreement and adherence to commercially reasonable security, confidentiality and privacy contractual terms. Vendors are subject to security risk assessments at the time of 25
onboarding and are thereafter periodically
Political Contributions Our political contributions are made through a
Spotlight voluntary, eligible employee-funded PAC, the 00 Premier, Inc., Employees’ Civic Action Fund Introduction Political Contributions (FEC ID: C00346288). The PAC’s mission is 01 to raise funds to support federal lawmakers Improving
FY2024 Political- Community Health who share the PAC’s vision, values and related Spending commitment to improve healthcare quality and 02 Ethics And safety and reduce costs. The PAC is voluntary Compliance by Our PAC and bipartisan,
contributing to both political 03 parties. Contributions are received and Our People And Culture $90,556 disbursed pursuant to internal contribution guidelines and in accordance with all Total Employee Contributions 04 Responsible applicable laws
and regulations, including Supply Chain election laws. 05 Environmental The PAC is overseen by the Employee Stewardship $57,500 PAC Advisory Committee, composed of a 06 Total Political Contribution subset of contributors to the PAC. We share
Appendix Democrat – 46% information on all contributions made by the Republican – 54% PAC with its contributors annually. The PAC only contributes funds to federal lawmakers. It does not make any contributions to state policymakers or to
organizations that are recognized under Internal Revenue Code Section 527 and registered with the Federal Election Commission. The PAC abides by all applicable laws and regulations and the federal lobbying disclosure requirements. Premier’s
previous Federal Election Commission and Form LD-2 lobbying activity disclosure reports may be found below: • Federal Election Commission Regular Lobbying Disclosures • Clerk of U.S. House of Representatives LD-2 Lobbying Disclosure
Reports 26
03 OUR PEOPLE AND CULTURE To effectively transform healthcare, we aim
to build high-performing individuals, leaders and teams through a People First culture, living our core values while maintaining high engagement and retention. > Our People First Philosophy > Benefits and Compensation > Talent Management
and Development > Employee Health and Safety > Diversity, Equity, Inclusion and Belonging
Premier’s mission is vital in today’s dynamic healthcare
industry. At the heart of our success are Spotlight our people—the diverse, innovative minds driving real, 00 Introduction sustainable change and reimagining healthcare as a Our People First Philosophy 01 better, more efficient system.
Improving People First Community Health Mindset in Action 02 Ethics And Compliance In FY2024, the results of our employee Our People First engagement survey remained strong. Our 03 Our People Philosophy Our employees are the lifeblood employee
engagement score was 77 as of And Culture of our organization; they are spring 2024, above the global engagement We aim to build high-performing individuals, 04 3 what differentiates us from our benchmark of 74. To maintain a People First
Responsible leaders and teams through a People Supply Chain competition and are pivotal to culture, we have taken various steps to act First culture, living our core values while our strategy. We are diligent in upon our FY2024 survey results,
including: 05 maintaining high engagement and retention. Environmental creating a thoughtful, inclusive Stewardship • Launching the “Opportunity Marketplace,” Our people strategy is anchored by three culture where everyone can
through which employees can easily find foundational goals: 06 contribute and grow; increasing Appendix unique opportunities for professional 1. Attract the best people through an the awareness and support growth and development. effective workforce
planning and • Growing the Mentorship Program for a for employee well-being and recruiting strategy. 35% increase in one-to-one pairs from last mental health; and giving Engaging Employees 2. Maintain a high-performing workforce year and
introducing “mentorship circles” back to our communities. Our with clearly defined goals, strong to connect unpaired applicants. leaders maintain responsible Value of leadership and aligned incentives. • Introducing Business
Resource Groups business practices aligned (BRGs) to connect employees with Employee Voice 3. Create a compelling work environment with our ethical, respectful and common areas of expertise to advance in which employees feel valued and accountable
culture, which to Business Premier’s mission and business objectives. able to contribute to the success of the together results in a positive • Celebrating National Career Development Success business through innovation, collaboration
employee experience. Month with a career development panel, and growth. We apply the insights gleaned from our Lisa Benna the launch of the continuous learning engagement survey to build an innovative Engaging Employees Chief Human Resources Officer
model and business unit overviews. culture. In response to employee feedback, Our continuous listening strategy is centered we hosted the People First Leader Cohort on our People First engagement survey Peer-to-Peer Recognition during FY2024. These
90-minute sessions conducted biannually by a third-party bring together a community of internal To strengthen our culture of promoting Premier is now part of the leaders to share successful business expert. The survey provides us with valuable
appreciation, we also provide an online Certified Age-Friendly Employer strategies related to communication flow information about employee morale and rewards program, Values in Action, to facilitate program and supportive of the and collaboration,
creating belonging, and workplace culture that can be used to drive UN Universal Declaration of peer-to-peer recognition with a note of thanks leadership skills within and across teams. informed, targeted action planning. Human Rights. and award
points that hat can be used to 28 purchase gift cards.
Here are additional ways we show support Professional Development
Benefits and for our employees and their families: • Tuition reimbursement policy. Compensation Spotlight • Advanced degree loan program. Mental Health Our Total Rewards Program combines To support the mental health and emotional 00
Flexible Work Arrangements Introduction competitive compensation packages with well-being of our employees and any member Health and Wellness Our corporate headquarters has been in health and wellness resources, employee of their households, our
Employee Assistance 01 Charlotte, North Carolina, for 15 years. Our Improving experiences, talent development, and Program (EAP) offers a variety of resources Raising Mental Community Health office represents more than just a physical recognition
opportunities. Our program is for mental health, childcare, eldercare, legal Health Awareness 02 space — it is the hub and heartbeat of our designed to attract and retain exceptional assistance and financial wellness, Ethics And Compliance
organization. Beginning in September 2024, In recognition of Mental Health Awareness talent at all levels of our organization. with features such as: Month in May 2024, Premier offered a we transitioned to a hybrid work model for • Six free
therapy sessions per incident. Premier’s benefits programs are available to 03 variety of engaging virtual events covering Our People employees who live within 35 miles of the • Personalized care plans. those full- or part-time employees
that have And Culture topics such as mindfulness and stress headquarters. These employees will be • Dedicated support. a regular schedule of working 20 hours per reduction. The lineup also featured an 04 expected to be in the office at least
three • Diverse providers. employee-led panel with internal and Responsible week or more. If organizational restructuring Supply Chain • Work-life services. days per week, with some minimal business- external experts to openly discuss
the is necessary such that workforce • Medication management. driven exceptions. We are confident this stigma around mental health that leads 05 adjustments must be made, we follow to harmful stereotypes, prejudice and Environmental model will
create the right balance, providing Healthy Living Stewardship the company’s severance plan, offering discrimination. Throughout the month, we opportunities for growth and in-person We provide customizable benefits coverage, benefits that
include salary continuation, also spotlighted mental health resources 06 interaction while preserving the convenience Appendix fitness and wellness programs, and healthy coverage for the employer’s portion of available to our employees and
their family and flexibility that remote work provides. members, including behavioral health living incentives, such as: health benefit premiums and access to coaching, counseling and support. Our new hybrid model is designed to • Annual
wellness incentive of $800 outplacement services. (increased from $600 in CY2023). reinforce a vibrant office culture that provides Health and Wellness • Personal health assessments employees with tangible benefits, including: We offer a
competitive benefits program and preventive screenings. Pay Equity • Real-time learning, mentorship, formal that provides an array of health, dental and • Activity goals and wellness Premier uses a variety of objective and informal
training, and professional vision coverage, along with life and disability incentive programs. evaluation methods, including external and business growth opportunities. insurance, flexible spending accounts, and • Online exercise and nutrition
programs. market surveys, geographic assessors • Opportunities to engage in one-on-one paid family leave offerings. • Gym membership discounts. meetings and spontaneous interactions of cost of living and labor, and external •
On-site gym and fitness classes In CY2024, Premier enhanced several with corporate and business unit leaders. experts, to ensure that our compensation at specific offices. • Ability to socialize innovative ideas and benefits to provide more
flexibility and programs are competitive, equitable and Family Support focus on seamless, creative work. financial support to our employees, including commercially reasonable. We utilize pay • Partnership with a national childcare •
Deeper and more personal connections the following: ranges in our human resources system and provider with discounted childcare to Premier, our work teams and each other. • Introduced personal finance education provide them for all job
postings to further benefits. through a third-party expert on topics pay-equity efforts and provide greater wage • Extension of paid family leave benefit from such as student loans, homebuying and transparency to employees and applicants. four
weeks to eight weeks retirement planning. We also engage third-party experts to (new in CY2024). • Increased our corporate contribution to conduct pay-equity analyses to drive greater • Increase in lifetime-benefit amount for the
employee pretax health savings accounts. fertility, adoption and surrogacy assistance insight into our total rewards strategy. 29 program from $25,000 to $40,000 (new in CY2024).
Training and Education their professional development, along with Our
talent management efforts Talent Management include the following: being provided access to ongoing education We provide an assortment of instructor-led and Development • New manager program for those directly sessions and community and social
events courses for job-specific training, as well as managing people at Premier for the first The One Premier Growth Mindset is our to learn more about Premier, the healthcare access to online learning platforms. Our online 00 time, consisting of a
monthly “Leading at Introduction approach to continually enhancing and industry and our impact on the communities curriculum includes a selection of over 10,700 Premier” webinar series. fostering our culture — being intentional we
serve. Furthering our commitment to internally developed and LinkedIn Learning 01 • Professional Women in Healthcare Improving about understanding where we have been diversifying our workforce, of the 2024 courses, grouped categorically with
topic Community Health programs for first-time leaders and early- while looking forward to the future of our summer intern class, 50% of our interns areas such as leadership and management; career talent. 02 work. Ultimately, we aim to cultivate an
were of ethnically diverse backgrounds and productivity and time management; artificial Ethics And • Mid-level management programs to Compliance environment that allows for learning, curiosity 50% were female, thus supplementing our
intelligence; project management; diversity, provide leadership training in preparation and reasonable risk-taking without fear while diverse talent pool of qualified candidates. equity, inclusion and belonging; personal 03 for advancing to vice
president or senior Our People embracing our corporate values as individuals, Once the 2024 program was completed, 96% and business acumen; data analytics; and director positions. And Culture teams and an organization. • Individualized career
coaching for talent of the participants were recommended for growth-mindset behaviors. In FY2024, 57% 04 at the vice president level and above. hire. Additionally, 59% of the summer 2023 Responsible of our employees utilized e-learning content,
Performance Supply Chain internship class accepted offers for continued and 12% of employees completed continuing Management Program Mentoring Program employment beginning after their subsequent 05 education units on LinkedIn to maintain their The
success of our approach to talent Environmental Our mentoring program supports our learning graduation dates. Stewardship certifications and licenses. Additionally, tuition management is largely strengthened by culture, provides career path
guidance, and scholarships totaling over $175,000 were regular check-ins within our performance 06 encourages personal growth and development Appendix provided during FY2024 to aid in advancing management program. These check-ins help across the
enterprise. In FY2024, we had 70 the higher and continuing education of 50 to align individual skills and strengths with mentorship pairs to facilitate opportunities qualified employees. Premier’s mission, vision and for on-the-job growth, new
connections, strategic objectives. Early Career and Leadership visibility and personal success. Following the Development Leaders leverage these check-ins to program’s completion, 98% of participants Our Human Resources team conducts an coach
employees on how they performed indicated that they were either satisfied or annual exercise of talent planning during in their roles compared to established job very satisfied with their mentor or mentee which leaders think strategically about
responsibilities, team expectations and pair and the overall program experience. existing talent and future business needs. department goals. With this feedback, Approximately 40% of mentees from past The process guides a systematic review leaders
and teams design pathways programs have found new opportunities of internal talent pipelines for potential for executing corporate objectives and at Premier. growth, retention risk, promotional readiness developing key competencies. Internships and
alignment with living Premier’s values. Collectively, our various professional In support of early-career talent, Premier Through this calibration process, we development initiatives help employees annually sponsors a summer internship
intentionally address talent gaps and learn and practice a growth mindset toward program for students from undergraduate risks through targeted opportunities and career growth opportunities. During FY2024, and postgraduate programs across the
meaningful self-mastery objectives for we promoted 311 employees, representing country to contribute to meaningful projects professional growth and development. approximately 11% of our total employees. over a 12-week period. Each student is paired
with a supervisor and mentor to guide 30
Training and Education Supporting Professional Development Spotlight 00
To celebrate National Career Development Month in November 2023, Premier hosted events to Introduction support our employees’ growth and development. We used feedback from our employee survey to 01 select the topics and partnered with
employees passionate about these topics and building related Improving Performance Management Program career paths. For example, we hosted a career development panel discussion with six Premier Community Health employees who shared their unique and
varied paths to career success by leveraging resources, Empowering Pathways 02 experiences, mentors and networks. Ethics And Compliance for Career Growth During FY2024, we launched Opportunity 03 Our People Marketplace, a new tool that empowers our
And Culture Early Career and Leadership Development Fostering Employee Diversity employees to explore internal job postings, enhance their skills and pursue growth 04 Developing Our Partnering With Educational Responsible opportunities aligned with
their career goals. Supply Chain The tool brings a personalized experience for Business Leaders Institutions to Cultivate Equitable 05 employees to explore internal job postings Access to Opportunities in Healthcare Environmental Since introducing
our Leadership through a skills-based AI that matches career Stewardship Excellence at Premier (LEAP) program profiles with internal job openings, thus Through our Premier Community Outreach Talent Initiative program, we partner with in FY2022, we
have continually evolved 06 streamlining the application process to identify a variety of high schools and universities to cultivate a diverse community, to bring Appendix the program to encourage bold thinking, relevant opportunities more
effectively. awareness to our work while advancing diversity within healthcare and to promote develop leadership skills and build a equitable access to opportunities. This program organizes and hosts career fairs, cross-functional network across our
case studies, and coaching and mentoring sessions that help students develop skills team. LEAP offers in-person and virtual and gain career insights. classroom learning through external Mentoring Program training providers, networking, cross-
collaborative cohort meetings and a Expanding real-world project addressing strategic Employee Resource and Business Resource Groups business initiatives within Premier. We Mentorship expanded in FY2024 to include in-person Putting Our Mission Into
Action Opportunities leadership experiences and a research- based, scientific assessment to measure Our mentorship program experienced such high Our ERGs aim to make a difference executive presence. In FY2024, we demand that we launched a new
nine-month within our communities by extending delivered this leadership development Mentoring Circle program during FY2024 to their ethos of inclusion and belonging opportunity to 20 high-potential leaders accommodate the requests. Through this
program, through both volunteering and serving in a director or senior director employees were able to join small groups for monthly charitable donations. For example, role. Each LEAP cohort is supported breakout sessions to share business
experiences and together, our ERGs designed a by several executive leadership team insights, network and build their professional circles, “Superhero Experience” for critically members who act as mentors and and learn from fellow
employees. ill children at several of our member sounding boards, and the program hospitals by creating capes, masks culminates in team oral presentations to and get-well cards to brighten the the entire executive leadership team. children’s
spirits. 31
mission to improve the health of communities. emergency. Every new
employee is required Employee Health to participate in and attest to receiving Our Chief Diversity and Inclusion Officer and Safety Our FY2024 an overview of the Emergency Response leads our DEIB strategy and reports to our Premier takes a
multipronged approach to Program through our compliance portal Progress 00 CEO with oversight by our Compensation Introduction safety in the workplace to provide a healthy during onboarding and annually thereafter. Committee and Board. Our
management-led During FY2024, we continued to work environment for all employees. We We also provide training for all employees 01 Council on Diversity, Equity, Inclusion advance our DEIB strategy through Improving maintain health and safety
policies that 3-4 times per year in which we do a practice Community Health and Belonging is composed of Premier’s a variety of initiatives, including cover all aspects of the work environment, alert exercise to ensure employees know executive
leadership team, organizational the following: 02 from day-to-day office expectations to how to respond when an emergency Ethics And vice presidents and Employee Resource • Leadership and Culture: We are Compliance disease preparedness and
natural disaster alert is sent to them through our Group co-chairs and is the governing moving forward with the One response. These policies and plans are emergency notification system. 03 committee that defines, drives and Premier Growth Mindset,
which Our People communicated and made available to all And Culture supports our five strategic DEIB pillars. is a system of agreements and 4 employees and include the following: These strategic pillars act as the key behaviors designed to drive
Diversity, Equity, 04 Responsible productivity, performance, • Workplace Safety Policy performance indicators of our DEIB strategy Supply Chain Inclusion and innovation and agility. • Emergency Response Program and are designed to
nurture and promote Belonging 05 • People and Workplace: We • Workers Compensation Policy an environment for high-performing teams Environmental introduced the concept of Stewardship • Drug and Alcohol Policy to improve and thrive
while delivering We believe that solving complex challenges Business Resource Groups, which • Workplace Violence Policy extraordinary solutions to improve requires a greater diversity of thought, cross- 06 strengthen employee connection
• Internal Infectious Disease Appendix healthcare for our members, partners cultural representation and engagement. We to the business by working on Preparedness Plan and community at large. know that diverse perspectives, experiences
real-world issues or problems. Premier’s Corporate Emergency Response and backgrounds are powerful ways to unlock Diversity of Our Board We have also continued to train Team (CERT) is responsible for coordination new ideas and better
understand the needs and educate our workforce on We recognize and value the benefits that and management of emergency situations, of others. The impact of our diversity, equity, DEIB-related topics through our diversity can bring to our Board, and
our such as disruptive weather events, safety inclusion and belonging (DEIB) approach is DEIB Concepts course, which Corporate Governance Guidelines include incidents, building disruption, public health far-reaching, not only within our company
covers anti-harassment and a formal Board Diversity Policy. The Board concerns, and technology and communication anti-discrimination. This course but also within the communities believes that diversity promotes the sharing issues. See Enterprise
Risk Management is required for all new hires and and members we serve. of different perspectives; mitigates against and Business Continuity section of this annually thereafter. Our DEIB Governance group thinking; and improves oversight, •
Partners and Members: We report for additional information. and Strategy decision-making and governance. continued to connect with In addition, our Emergency Response Program Our overall DEIB goal is to drive higher members and supplier partners to
To learn more, please see our latest provides guidance in the event of situations individual and team performance by share best practices for integrating Proxy Statement for our 2024 that may impact employee safety or normal continuously improving
the DEIB and DEIB into workforce development. Annual Meeting of Stockholders. business operations. We leverage the “One Premier Growth Mindset” principles Emergency Response Program to provide all- throughout the Premier culture with a
focus on staff alerts and engage in regular testing and employees, members, partners, investors and training to make sure our workforce is familiar the community at large, and by enhancing our with Premier’s process in the event of an
32
Diversity, Equity, Inclusion and Belonging DEIB Engagement Drivers
Spotlight Cultivating 00 5 Introduction Our DEIB indicators scored above global benchmarks in our an Inclusive spring 2024 employee engagement survey (% favorable): 01 Workforce Improving Diversity, Equity, Inclusion and Belonging Community Health
Premier was recognized by Newsweek for its Charlotte Business 02 commitment to creating a diverse and inclusive Ethics And Compliance Journal’s 2023 Power workforce and fostering a culture rich with unique Inclusion perspectives and
experiences. 100 List 03 Our People Compared to 70% Premier is also a designated Certified Age-Friendly In 2023, Premier Chief Diversity and Inclusion Officer, Joe And Culture for global benchmark. Employer, going through a structured evaluation
Machicote, was named in the Charlotte Business Journal’s 2023 76% of human resource and management policies and 04 Power 100 list, which recognizes regional leaders in diversity, Responsible practices relative to known best practices that
Supply Chain equity and inclusion. help with the retention and recruiting of age 50+ 05 workers on an age-friendly or age-neutral basis. Environmental Stewardship 06 Appendix Belonging Compared to 73% for global benchmark. 75% Our Five Strategic
DEIB Pillars LEADERSHIP AND CULTURE PEOPLE AND WORKPLACE COMMUNITY HEALTH SUPPLIER DIVERSITY PARTNERS AND MEMBERS Create a culture known both Build a diverse workforce by Design and implement Evolve strategies to continue the focus Establish DEIB
partnerships with internally and externally for its identifying, attracting and retaining coordinated community on socioeconomic development and suppliers and members to enhance high-performing leaders and a pipeline of diverse and qualified
development initiatives in growth of communities through minority- our relationships by leveraging teams with a “One Premier candidates through targeted outreach, partnership with employees, and women-owned business enterprises. our strengths,
including advocacy, Growth Mindset” for evolving recruitment, employee development health system members and life We believe the increased use of our collaboratives and academics, to our culture and optimizing and selection in an
anti-discriminatory sciences partners to address Supplier Diversity Program will help achieve the goal of improving health organizational growth. environment that ensures equal the drivers of health that drive better healthcare outcomes and in our
communities together. access to opportunities while living achieve health equity. develop a more robust supplier-diversity by our values and maintaining a ecosystem for the healthcare industry. high level of employee engagement, performance and
retention. 33
Employee Business Resource Fostering Employee Diversity In FY2024, we
introduced the All Together Resource Groups Groups One Multi-cultural ERG that serves as an Our vision is to maintain a workforce that AAPI Employees Nurses at Premier umbrella group for our other ERGs and represents the populations we serve and All
Together One Health Equity Leadership Council expands the reach for DEIB initiatives in the to promote an inclusive, anti-discriminatory 00 One Premier Growth Mindset (OPGM) Task Force Black Professionals Connect Introduction company. Altogether, we
have eight ERGs, environment of belonging that ensures equal Community Health/Development Task Force Disabled Employees with approximately 10% of our employees access to opportunities. 01 Premier Community Outreach Improving Latin Employees
participating across business units and Community Health Talent Initiative (PCOTI) In FY2024, we continued efforts to identify LGBTQ+ Employees locations around the country. Member Field Services Advisory opportunities that drive more parity in 02
Military Veteran Employees Council on Diversity & Inclusion Ethics And Each ERG is allocated funds annually our representation of employees from all Compliance W.O.M.E.N. to support group events and charitable backgrounds across the
organization. Our 03 donations. In FY2024, our ERGs hosted over ongoing activities in this area include: Our People And Culture 20 workshops, lectures, fireside chats, lunch 6 Employee Diversity Metrics • Engaging with targeted colleges, and
learns, and other events. 04 universities and professional affinity Responsible organizations with a higher population of Supply Chain Business Resource Groups Total Manager Level diverse representation. During FY2024, we introduced Business
Employees* and Above* 05 • Utilizing real-time population data to Environmental Resource Groups (BRGs) to further Stewardship Gender Representation Gender Representation identify recruitment opportunities for incorporate DEIB into our business
strategy. qualified diverse talent. 06 While ERGs unite individuals who share Appendix • Recruiting Employee and Business cultural similarities, BRGs gather individuals Resource Groups to become “employee with similar educational
backgrounds and ambassadors” for talent outreach initiatives areas of expertise. BRGs are focused on a with colleges and universities. specific area of the business or a specific • Continuing to develop a diverse applicant project and
are designed to act as a strategic pool for our internship program. resource that facilitates feedback and 54.1% Female 50.9% Female 45.8% Male 49.0% Male Employee Resource and Business knowledge sharing by: Resource Groups • Facilitating
connection and community Race and Ethnicity Representation Race and Ethnicity Representation Employee Resource Groups for employees of the same work Our Employee Resource Groups (ERGs) act affinity, through networking, leadership as the employee
voice in helping leadership development, collaboration and professional growth. define the employee experience, and they • Acting as a focus group for important leverage their knowledge for broader business innovation, specialized projects
organizational success. They also provide a or initiatives, knowledge-based decision- way to channel information that enhances 70.0% White 77.9% White making, and research. our employees’ abilities to network with peers 11.2% Asian 9.2% Asian
• Providing education and awareness on 11.0% Black or African American 6.0% Black or African American and foster a sense of belonging throughout 4.3% Hispanic or Latino 4.0% Hispanic or Latino specific topics and projects based on 7 7 the
company. Demonstrating our focus on 3.5% Other 2.9% Other the group’s knowledge and expertise. *As of June 30, 2024. Percentages may not total to 100% as some nurturing a DEIB culture, every member of our employees have not declared certain
demographics. • Creating innovative work products to 34 executive leadership team acts as a sponsor assist in our mission to improve the for one or more ERGs. health of communities.
04 RESPONSIBLE SUPPLY CHAIN We enable our members to provide better
healthcare and improved outcomes at a lower cost for patients by improving the quality, efficiency, sustainability and resiliency of the healthcare supply chain and by leveraging our industry-leading technology capabilities powered by one of the
nation’s largest repositories of clinical, operational and financial data. > Ethical Standards > Product Quality and Safety > Drug Shortages and Traceability > Environmental Sustainability in Procurement > Supplier Diversity
> Direct Sourcing > Supply Chain Resiliency and Disaster Response
conflict-of-interest disclosure, divestiture and Our supply chain
services help our members manage recusal requirements. During CY2023, 100% non-labor expenses and capital spend, enhancing of our GPO committee and subcommittee healthcare quality and cost-effectiveness. members, Board directors, and employees 00
Introduction completed their annual conflict-of-interest attestations. 01 Improving An ongoing internal evaluation of potential Community Health risks is monitored by our Legal and Corporate 02 We pride ourselves on integrity, expertise Compliance
department. Our anonymous Ethics And Ethical Standards Compliance and fair, transparent sourcing. Premier third-party reporting portal, Premier’s In providing our group purchasing services, partners with suppliers who prioritize WorkSmart
Integrity HelpLine, is available 03 Our People we serve the interests of our member manufacturing quality, resilience, ethical to anyone to report unethical behavior, And Culture hospitals and health systems and, through practices and social
responsibility. misconduct or suspected illegal activity. 04 them, the patients and communities they Responsible Group Purchasing Supplier Standards Supply Chain serve. Integrity forms the basis of our Organization Program Premier maintains Supplier
Standards that successful business operations and underpins 05 On behalf of our members, we maintain a communicate our values and expectations Environmental all our business relationships. Stewardship portfolio of over 3,400 contracts with more and
emphasize suppliers’ responsibilities Group Purchasing Code of Conduct than 1,400 suppliers through our group and obligations. All suppliers are expected 06 Appendix We seek to act ethically, accountably and purchasing organization (GPO)
program, to uphold our high ethical and professional fairly with respect to all participants in the providing our members with access to standards, including responsible business healthcare marketplace. Our contracting a wide range of products and
services, practices related to environmental process is guided by our Group Purchasing including medical and surgical products, stewardship, human rights, conflicts of Organization Code of Conduct (GPO pharmaceuticals, laboratory supplies, interest
and anti-corruption. Code), which is one of the industry’s most capital equipment, IT, facilities and Vendor Grievance Process comprehensive codes of its type and which construction, food and nutritional products, We have a vendor grievance
process in place supports healthy competition and the and purchased services. Our contract to ensure a vendor’s ability to access our development of innovative products. The portfolio includes suppliers that manufacture contracting staff and
leadership for concerns GPO Code applies to our employees, Board, in China, the U.S. and elsewhere in North relating to the contract award process. suppliers and members and aligns with America, South America, Europe, Africa, Concerns, grievances
and complaints are the Healthcare Group Purchasing Industry and other parts of Asia. reviewed by our Vendor Grievance Review Initiative (HGPII) Code of Conduct, best We aggregate our members’ purchasing Panel. A vendor may request additional
practice ethical standards for the group power to negotiate pricing discounts and review of any outstanding concerns through purchasing industry and other common improve contract terms with suppliers. We the HGPII Independent Evaluation Process,
ethical policies. do not take title to the underlying equipment facilitated by the American Arbitration or products purchased by members through Premier’s comprehensive policies and ® Association . In CY2023, one supplier filed a our GPO
supplier contracts. Total purchasing procedures are designed to promote internal grievance. For more information, please see and external constituent adherence to strict volume by all GPO members was more than our Vendor Grievance Policy. 36 $84
billion for CY2023.
Third-Party Monitoring hospital members — sit on one of our 28
Contracted suppliers are expected to comply Product Quality strategic sourcing committees. These We partner with a third-party provider for with all FDA requirements for actions to be and Safety committees advise on ways to improve ongoing supplier
and site assessment and taken related to products (medical devices, We act as a trusted connection point for the development, quality and value of our monitoring of a broad range of environmental drugs, biologic products, etc.) that are found 00
healthcare providers, suppliers and the Introduction products and services. We believe that and social issues, including identifying to be defective, could pose a risk to health government by seeking to promote access Premier is differentiated by
our rigorous, chemical spills; environmental hazards; or are in violation of FDA regulations. This 01 to safe, high-quality products throughout our Improving comprehensive product selection process that regulatory changes; labor disruptions or
includes notification to the FDA, as well as Community Health supply chain. Clinical efficacy and improved is designed to be: violations; fines; legal and regulatory actions; collaboration with our GPO and subject- 02 patient care are especially
important to us and • Standardized but flexible and actions under the FDA, European matter experts, to notify members, provide Ethics And Compliance to our members. • Evidence based Medicines Agency, or related to the support and advice
regarding safety incidents • Metrics driven Occupational Safety and Health Act. We also GPO Supplier Selection Process or recalls, and conduct follow-up checks to 03 • Transparent Our People incorporate risk scoring into our supply chain
ensure successful resolutions. And Culture Our GPO operational contracting analysis is • Dynamic management processes to analyze trends, designed to ensure that products provided If a healthcare provider has a question or • Diversity
friendly 04 identify risky suppliers or parts, and mitigate Responsible by GPO suppliers are FDA-approved as • Interdependent concern about a pharmaceutical product Supply Chain risks when possible. required and perform as intended in a safe
• Ethically driven they purchased from the manufacturer or 05 and effective manner. Our quality and safety Recall Policies and Procedures wholesaler/distributor and that concern is Environmental Clinical Councils and Selection Criteria
Stewardship assurance begins with the initial supplier bid We monitor a variety of FDA and other shared with us, we put that provider in touch Our supplier selection criteria vary by submission. During the kickoff stage of our industry sources for
notification of any with the appropriate individuals to discuss the 06 category and are created by our internal Appendix supplier selection process, we require that pharmaceutical recalls. This allows us to concern and action that needs to be taken.
Clinical Councils with member subject-matter each supplier disclose information related to understand the nature of the recall, if it is a expertise on the product category being product category regulations, including FDA product and/or
manufacturer with which we reviewed. Our Clinical Councils are composed inspection and clearance status. Premier’s are under contract, and if there is a need of multidisciplinary members, including from Risk and Compliance department has to
take action. Our members are provided the pharmacy, laboratory, nursing, surgical incorporated baseline control expectations alerts regarding shortages, recalls and other and cardiovascular areas. Clinical Councils into our group purchasing
contracts that safety incidents through a weekly pharmacy establish the core evaluation framework suppliers must formally attest to in writing newsletter. Time-sensitive updates on that best accounts for safety regulations, as a condition of sale
and usage. In addition, pharmaceuticals are provided to members clinical trials, product reviews and applicable our GPO may evaluate product-related through email. certifications related to key assessment information involving patient and worker
During the supplier selection process, each factors, such as: safety as well as environmental issues. Our supplier must provide its recall policies and • Quality GPO does not independently test procedures, including management of recall
• Safety any products. notifications, customer engagement, order • Clinical impact Sourcing Committees substitution and expectations regarding • Cost-effectiveness We facilitate service line-specific sourcing turnaround time
thresholds. This information • Physician preference committees to determine which suppliers • Environmental impact is reviewed by our service line-specific • Diversity are awarded group purchasing contracts. sourcing committees and
clinical committees. • Breakthrough potential More than 520 individuals — collectively • Member input representing more than 175 of our U.S. 37
pharmaceuticals. Upon receipt, the provider healthcare that cut costs
over the long term, Drug Shortages of a pharmaceutical product can track its reduce environmental impact and minimize and Traceability Spotlight movement throughout the supply chain. negative consequences on public health. We partner with health
systems to find better Our members and contracted distributors 00 Environmental ways to deliver critical drugs that pharmacists Introduction abide by DSCSA rules and regulations. Environmental Sustainability Assessment Process and clinicians need to
serve their patients. in Procurement We offer supplier contracts for members 01 We work with suppliers to ensure that Improving Alleviating Drug Shortages with DSCSA track-and-trace technology Community Health environmental sustainability
information is Mike Alkire, solutions to assist our members in ensuring Premier and other traditional healthcare made available before purchasing decisions 02 Appointed to the integrity of the drug supply chain. Ethics And GPOs play a critical role
in the U.S. healthcare are made. We request extensive information Compliance system, helping to ensure a healthy and the Supply Chain We contract with distributors that purchase from our suppliers on environmentally 03 sustainable marketplace as
well as provider pharmaceuticals for our GPO members preferable policies and practices and are Working Group Our People And Culture access to vital products and services. directly from the manufacturer, thus guided by our Environmentally Preferred
In FY2024 President and CEO, Mike Premier has been a leader in addressing minimizing the chance for diversion or Purchasing (EPP) Advisory Council. The 04 Alkire, was appointed to the Supply Chain Responsible drug shortages for more than 20 years
and counterfeiting. In addition, with respect EPP Advisory Council is composed of Supply Chain Working Group for the National Academies will continue our work in leading innovations to 503B suppliers that are under contract sustainability, supply
chain and facilities of Medicine Action Collaborative on 05 that have benefited U.S. patients, brought with Premier and supply drug-shortage specialists from a cross-section of member Decarbonizing the U.S. Health Sector. Environmental Stewardship
new domestic entrants to market and products to our members, we have a health systems. It reviews and advises on This group is focused on enhancing the fostered new sources of competition and process through which we audit each upcoming contracts
from a sustainability 06 alignment and coordination of industry, Appendix that, we believe, have strengthened supply supplier over the course of the life of the perspective. The EPP Advisory Council also federal policy-making and regulatory chain
resiliency. As a company, we have a contract. Distributors engaged in known acts as a forum for members to discuss bodies to better incentivize and enable strong track record of eliminating shortages low-carbon innovations, and modernize gray-market
activity (e.g., selling Premier best practices to promote sustainability supply chain regulatory processes with using actionable, market-based solutions. private-label products when the distributor in healthcare, solve common challenges the
following goals: is not under contract with Premier) or price and drive continuous improvement. Drug Traceability • Collate and elevate sustainability gouging on shortage-impacted drugs will and Diversion Control Our sourcing process includes
questions metrics and indicators for those that not be awarded a contract with us. Our portfolio of pharmacy contracts covers addressing topics such as the existence produce and distribute products to hundreds of suppliers and distributors of
chemicals of concern, bisphenols, flame Environmental enable more consistent monitoring and that provide thousands of products to our retardants, lead, mercury, recyclable or benchmarking across the industry. Sustainability in GPO. Through our
pharmacy program, recycled packaging, sustainability attributes • Create a shared inventory/repository we contract with manufacturers of both Procurement or certifications, power-efficient attributes, of resources and best practices.
commercially manufactured pharmaceuticals • Identify unities to reduce complexity and non-latex, non-DEHP/PV products. We are committed to supplying our members and 503B-manufactured (i.e., outsourced and waste in the supply chain, with
products that support the health of their Premier is also a signatory of the Chemical drug compounding facility) pharmaceuticals. including moving towards reusable patients, staff members and communities. Footprint Project (CFP), which provides an
and recyclable packaging. These manufacturers either deliver their As part of this commitment, our Sourcing independent assessment solution to help track products directly to the healthcare provider Committees include data on environmental and
encourage the use of safer chemicals. As or ship through authorized wholesalers and impacts in their contracting decisions. a CFP signatory, and through the support of distributors who abide by Drug Supply Chain Enabled by our data-driven approach,
our individual members, we help accelerate Security Act (DSCSA) regulations for tracking forward-thinking supply chain teams are the adoption of safer and environmentally and tracing the ownership and delivery of 38 driving continued green
innovations in sustainable chemicals by industry suppliers.
Recent updates to our supplier space. We have also collaborated closely
with Supplier questionnaires include questions specifically Healthcare Anchor Network (HAN), providing Spotlight Diversity addressing suppliers’ Scope 1 and Scope feedback on how GPOs can advance HAN’s 2 emissions. These include whether
dual objectives of supporting local economies As an organization aiming to transform 00 Introduction Supplier Diversity Program suppliers are measuring their emissions and furthering environmental justice. Through healthcare within communities
across and reporting them publicly, if they have these efforts, we are working to address the the country, we recognize that supplier 01 Supporting Improving been independently verified, and what healthcare sector’s role in climate change.
diversity is an important component of our Community Health Growth of Our their emission reduction plans are. members’ success. We believe that minority- We also work with member health systems 02 and women-owned business enterprises Ethics
And Diverse GPO Contracted products with their environmental to advance their own sustainability initiatives Compliance (MBEs and WBEs, collectively referred to as characteristics are highlighted in our product in a cost-effective and -efficient
way. This Suppliers “diverse”) and small business enterprises 03 catalog for use by our member health systems includes utilizing environmental analytics Our People We continue to evolve our strategies so (SBEs) help our hospitals create
jobs and And Culture as part of our work to integrate critical in the contracting process and offering a that our efforts can also help to provide a improve life in the communities they serve: environmental impact data for medical and database with
environmental and human focus on the socioeconomic development 04 Responsible and the growth of communities served nonmedical products into the purchasing health impact data integrated at the product • As of June 30, 2024, Premier’s
contracts Supply Chain by our healthcare members. Through our with diverse and SBE suppliers process for hospitals, health systems and level. We support members pursuing the extensive supplier network, we are uniquely 05 increased by 1% over the
prior year to other provider organizations. For example, elimination of chemicals of concern from Environmental positioned to bring diverse suppliers and Stewardship 423 contracts and accounted for 11% the consideration of Premier’s
environmental certain product categories in accordance healthcare entities together to explore of our total GPO contract portfolio. data within supplier decision-making helps with industry guidelines established by 06 business opportunities. During
FY2024, • In CY2023, our GPO members spent Appendix our hospital members to better integrate Practice Greenhealth and HAN. Other member Premier partnered with our members to host over $800 million with diverse (minority-, regional supplier
diversity conferences to eco-friendly products and sustainable initiatives that we help support include: and women-owned enterprises), promote diverse suppliers within the GPO practices within targeted healthcare areas to • Reducing waste
through reprocessing. veteran-, and service-disabled veteran portfolio and also identify opportunities for make positive impacts, such as in operating • Using products with recyclable owned enterprises and small business local suppliers to
scale their businesses rooms. While operating rooms generate packaging and content. enterprises.and SBE suppliers. from a regional to a national level. approximately 60% of a hospital’s revenues, • Decreasing greenhouse gas emissions.
The MetroHealth system was the first they also produce approximately one-third • Lowering energy usage through the Supplier Diversity Program member to launch a regional conference. purchase of energy-efficient electronics. of a
hospital’s waste and two-thirds of its We appreciate the challenges that diverse Minority- and women-owned businesses regulated medical waste and can consume were able to network with supply chain suppliers have with reach and access to
Combining member purchasing data within three to six times more energy per square and clinical value analysis representatives market opportunities for their healthcare- our GPO supply chain with our EPP supplier to explore opportunities with
hospitals foot than anywhere else within the hospital. related products and services. Our Supplier information helps our members to track and interested in growing their business with Diversity Program was created to provide Supporting Environmental
monitor compliance with their environmental diverse suppliers. Intiatives within Healthcare an opportunity for these businesses to objectives and sustainability goals. Recognizing that the challenge of improving partner with us and has been
prioritized healthcare’s environmental footprint can only as a strategic pillar of our DEIB strategy. be solved by close cooperation, we foster ties The program is constantly expanding to with all relevant parties. Premier is an Affiliate
include additional diverse suppliers, such Premium Partner of Practice Greenhealth, as minority-, woman-, veteran-owned the foremost nongovernmental organization businesses, service-disabled veteran-owned operating in the healthcare sustainability
businesses and LGBTQ-owned businesses. 39
00 Introduction 01 Improving Community Health 02 We believe the
increased use of our Supplier Vendor Risk Premier’s security, third-party audits and Ethics And Direct Sourcing Compliance Management and Audit Diversity Program will help drive better certifications, documentation, and legal We offer our
members the opportunity to healthcare outcomes and develop a more Premier is committed to providing safe and regulatory commitments help support 03 Our People purchase products that are directly sourced in robust supplier-diversity ecosystem for
products and services that meet compliance customer compliance teams to regularly And Culture the healthcare space through our subsidiary, the healthcare industry. To further support and reporting needs. We have integrated undergo independent
verification of our 04 S2S Global (S2S), primarily for commodity and expand our Supplier Diversity Program, a centralized risk management and security, privacy, compliance controls, Responsible Supply Chain items such as patient gowns, exam gloves,
Premier is a corporate member of the compliance cloud-based platform into our certifications, compliance attestations lab coats, masks and incontinence products, following advocacy organizations: vendor management system to ensure or audit reports.
05 Environmental among others. We believe that our direct vendor compliance with all applicable laws Stewardship • National Minority Supplier Quality Assurance sourcing activities help our members and and regulations. Suppliers are required to
Development Council and Traceability 06 other customers access a diverse product undergo an initial on-site audit conducted Appendix • Women’s Business Enterprise The Quality Assurance program for our portfolio and provide transparency
related to by a third-party auditing firm during the National Council S2S direct sourcing option incorporates manufacturing costs and competitive pricing. • Healthcare Supplier Diversity Alliance onboarding process. The audit covers labor,
industry best practices to deliver high- We market our direct sourcing activities • Healthcare Group Purchasing wage, health and safety, trafficking, and quality products, traceability and tangible ® primarily under the PremierPro brand.
Industry Initiative other social compliance metrics. As a part savings. S2S’s internal Quality Assurance of the independent verification process, Given the global footprint of our contract team, along with the Quality Inspection The SEEDS
Program third-party auditors examine our end-to-end manufacturing suppliers, our corporate social team from our overseas exclusive sourcing Within the framework of Premier’s Supplier security practices, including data centers, responsibility
practices at S2S are paramount. agent, conducts both supplier and product Diversity Program, our Sourcing Education infrastructure and operations, at a regular S2S has adopted strong anti-bribery and anti- validation throughout the manufacturing and
Enrichment for Diverse and Small cadence. An unannounced follow-up visit corruption standards and seeks to identify process. Members conduct product validation Suppliers (SEEDS) program aims to increase is made to ascertain progress. Results and and
mitigate the occurrence of forced labor and a preproduction evaluation via our S2S the number of small, diverse and regional corrective actions are then shared annually and human trafficking in our supply chain Clinical Committee. Member feedback
also enterprises doing business with members of with Premier’s Board and its Audit and through education. In CY2023, 100% of S2S drives product improvements throughout the our healthcare alliance. It lends support to Compliance Committee.
Every contracted employees and other personnel who work contract cycle. diverse and SBE suppliers, including coaching, supplier in our direct sourcing business with S2S completed this education. Supplier validation includes third- mentoring,
business educational tools and a is also required to participate in the S2S party auditing covering manufacturing stair-stepped approach to help them develop Social Compliance Program to ensure they specifications and facility capabilities (e.g.,
and grow strategic long-term relationships. conduct themselves in an ethical and socially ISO 9001, ISO 13485, Good Manufacturing responsible manner. 40
Practices, etc.). Products are inspected Supply Chain during production
through random sampling Resiliency and prior to shipment and via inbound and random distribution center inspections to monitor Disaster Response 00 Introduction product quality and consistency over time. We have a program in place designed to S2S
employees regularly participate in internal 01 promote geographically diverse manufacturing Improving product portfolio training related to product Community Health and ensure a robust and resilient supply chain quality and product safety. for
essential medical products. Its aim is to 02 Ethics And Traceability capabilities are facilitated help members invest in businesses that can Compliance throughout the supply chain fulfillment supply products experiencing shortages, co- 03 process by
utilizing identifiers on packaging fund the development of affordable products Our People And Culture (both inner and outer), such as printed lot that address specific market needs and numbers, date of manufacture and unique create strategic
sourcing contracts to ensure 04 Responsible device identifiers. S2S also offers members continuous supply. Supply Chain safety data sheets, customer training and We take a holistic approach to optimize 05 counseling for product offerings.
Environmental delivery efficiencies between our members Stewardship and suppliers. We rely on third-party 06 transportation providers to transport our Appendix directly sourced goods via various modes of transportation, including air, ocean and
road. While most of these direct-sourced items are produced by suppliers in Southeast Asia, we have created a more resilient healthcare supply chain by partnering with healthcare providers and suppliers to increase domestic and near-shore production
of personal protective equipment and other critical supplies. Our dedicated Disaster Response Community team is focused on ensuring business continuity for our members during a hurricane, fire, tornado or other emergency. Our team constantly
monitors all areas of the U.S. for earthquakes, wildfires, hurricanes and other disruptive events that could potentially affect our members, suppliers or employees. 41
05 ENVIRONMENTAL STEWARDSHIP A healthy planet means healthy people. We
strive to reduce our environmental impact and help our members integrate environmentally friendly practices into their own operations. > Addressing Climate Change > Facilities Management
In pursuing our mission to improve the health of agreements, exploring
additional opportunities 2. Improved data and methods used to calculate Scope 2 emissions from our for efficiency upgrades in existing facilities (see our nation’s communities, we are committed to Culpeper, Virginia, data center resulted
Facilities Management section), and utilizing environmental stewardship. We integrate eco- in an increase in reported location-based energy attribute certificates (EACs). Premier’s 00 emissions associated with this facility. Introduction
friendly practices into our operations and provide our primary production data center in Culpeper, Looking ahead, we recognize that we face Virginia, utilizes EACs from U.S. wind virtual 01 members with resources to consider environmental Improving
® certain limitations in reducing our Scope 1 power purchase agreements and Green-e Community Health factors in their purchasing decisions. Premier’s and Scope 2 emissions, as all our offices, wind renewable energy certificates, making 02
including our headquarters, are leased. In associated market-based emissions zero. Environmental Policy, endorsed by our Board and Ethics And Compliance addition, beginning in September 2024, we Premier is committed to taking measured senior
management, guides these initiatives. will transitioned to a hybrid work model, with 03 steps to reduce our GHG footprint as part of Our People employees who live within 35 miles of our And Culture our approach to managing key sustainability
Charlotte headquarters expected to be in the risks and opportunities. Our progress is 04 office three days per week. Since most of our Responsible discussed quarterly with our ESG Steering Supply Chain employees transitioned to primarily remote
Committee to determine where and when to the amount of primary data utilized in our Addressing work after the outbreak of the COVID-19 05 move the program forward. In FY2024, we calculations to boost the accuracy of the Environmental pandemic, this
change is expected to result Stewardship Climate Change began a process to identify the Scope 3 GHG assessment. Through these efforts, we once in a relative increase in electricity use at emissions categories most relevant to our again increased the
percentage of GHG We are cognizant of our duty to reduce 06 Appendix that facility. Nevertheless, we plan to utilize business to understand our full GHG footprint. calculations that leveraged primary data. the environmental impact of our operations
our GHG assessment as a starting point to in a fiscally responsible manner and are For more information on our approach Consistent with previous assessments, explore future emissions reduction initiatives. taking steps to shore up our resilience to
managing our emissions and key in FY2023, electricity used at our offices This includes seeking environmental and adaptability. We are utilizing a phased climate-related risks and opportunities, was our largest GHG emissions source, considerations
and requirements in new lease approach to understand our greenhouse please see the TCFD Index. accounting for roughly 86% of our market- gas (GHG) emissions as an organization, 8 based Scope 1 and Scope 2 emissions. Premier’s FY2021-2023 GHG
Emissions (MTCO e) 2 establish effective governance and oversight The bulk of this electricity use can be 2500 structures, and identify the next steps to attributed to our co-located data center take to do our part in the transition to a in
Charlotte and our headquarters. low-carbon economy. 2000 A full breakdown of our Scope 1 & 2 Our annual Scope 1 and Scope 2 GHG GHG emissions can be found here. 1500 assessment in FY2023 again covered our From FY2022 to FY2023, our absolute
offices and data centers. This assessment Scope 1 and 2 emissions remained relatively was completed in accordance with the 1000 stable, primarily driven by two factors: GHG Protocol Corporate Accounting and 1. Although our real estate footprint
Reporting Standard and Scope 2 Standard. 500 decreased, electricity use for our For this assessment, we continued to Charlotte headquarters increased due focus on improving and standardizing 0 to increased office activity coming out our data
collection processes to increase 2021 2022 2023 2021 2022 2023 of the pandemic. 43 Location Based Market Based Scope 1 Scope 2
Waste Management temperature depending on occupancy, which Facilities
reduces the run time on HVAC equipment. We are conscious of the waste produced Spotlight Management We also continue to have an ongoing initiative at our facilities and look for opportunities As part of our ongoing commitment to to replace all
interior lighting with LED bulbs to reduce waste when possible. We also 00 Introduction Factilities Management understand and manage our environmental when possible and provide LED fixtures for work with our landlords and suppliers to impact, we
seek to optimize our energy, water any fixture replacements. Finally, we continue implement eco-friendly best practices as part 01 Building Our Improving and waste use across our operations. This to keep our preventive maintenance contracts of
advancing our environmental management Community Health Knowledge of starts at our Charlotte headquarters building, intact on most of our key equipment (including strategy, such as: 02 which is managed by Northwood Office chillers for a condensed
water loop, power Ethics And Sustainable • Requesting cleaning vendor partners to Compliance and is LEED®-CS Gold certified, with LEED supply backups, etc.) to help prolong the support more environmentally friendly Facilities Commercial
Interiors principles applied within life of the equipment, maintain efficiency, 03 practices, such as using eco-friendly Our People Management the interior build-out design. decrease down time and limit costly And Culture products, HEPA-filter
vacuums, recycling emergency repairs. implements, and energy- and water- Last year, Director of Facilities, Tammy The facilities service company for our 04 Dorcas, was pursuing her International efficient cleaning equipment. Responsible When
applicable, in conjunction with our headquarters was awarded the Cleaning Supply Chain Facility Management Association (IFMA) • Repurposing office furnishings and property management teams, Premier Industry Management Standard Green
Sustainability Facility Professional (SFP) supplies for local charitable 05 participates in electricity curtailment events. Building Certification with Honors from ISSA, certification and received an IFMA Environmental organizations, schools,
churches, Stewardship During these events, Premier turns off any the world’s leading trade association for the scholarship that paid for her course. We are community organizations and our happy to report that Tammy successfully devices that
are not in use and minimizes cleaning, hygiene and facility management 06 employees (by auction). Appendix passed and is now a certified SFP. lighting to only what is necessary for safety industry. The award is given to those • Encouraging
employees at our and productivity. We seek to incorporate LED companies that demonstrate a commitment headquarters to check on-site office lighting requirements in all new leases that to the delivery of environmentally preferable supplies before
ordering. cover future build-out or space renovations services designed to meet customer needs • Reducing paper use and storage fees by and install motion-sensor lighting with auto- encouraging all offices to utilize electronic and
expectations. storage for documents and recycling old shutoff features when possible. We also Energy Use Reduction hard copies when feasible. work with our landlords to provide special While most of our staff continued to be parking for
fuel-efficient cars, electric vehicles We also look for opportunities to recycle remote based in FY2024, we have taken and carpools. In addition, when scheduling electronic waste whenever possible. Premier several steps to promote energy
conservation external meetings and conferences, we is a member of e-Stewards Enterprise, at all our facilities. Premier has occupancy strive to pursue contracts with facilities that which recognizes electronics recyclers that sensors in most of our
office locations, integrate green offerings into their building meet certified standards for responsible allowing us to reduce power consumption if operations and customer service, such as recycling practices. We also offer a computer there is no
occupancy on the floors or in the recycling and water and energy conservation. drawing twice a year to our employees for buildings. We actively monitor our energy the opportunity to purchase refurbished, needs and have taken steps like reducing
previously used Premier computers, with a the number of office printers when feasible. portion of the proceeds being donated to a In addition, this year we worked with our nonprofit organization. landlord at our headquarters to set thermostat
differential settings to manage room 44
06 APPENDIX
Sustainability Data Table For reference, the following table highlights
key sustainability metrics and resources related to our operations. FY2024 FY2023 FY2022 FY2024 FY2023 FY2022 00 Introduction 11 ETHICS AND COMPLIANCE OUR PEOPLE AND CULTURE 01 Improving Nominating and Governance Committee Charter ~2,900 ~2,800
~2,600 Board ESG Oversight Total Head Count (#) Community Health As of 10/21/2024 As of 10/18/2023 As of 10/19/2022 10.0% 16.0% 18.0% Board Composition Total Employee Turnover Rate (%) 02 Ethics And Total Directors 9 9 10 Voluntary Employee
Compliance 8.0% 11.0% 14.0% Turnover Rate (%) Average Age (Years) 66 65 63 03 Involuntary Employee Our People 2.0% 5.0% 4.0% Average Tenure (Years) 8 7 5 Turnover Rate (%) And Culture Independent Directors (#) 8 8 9 Employee Diversity 04 Responsible
Independent Directors (%) 89.0% 89.0% 90.0% Supply Chain Total Employee Diversity (%) Women (#) 3 3 3 Women 54.1% 56.0% 54.6% 05 Environmental Women (%) 33.0% 33.0% 30.0% Stewardship Asian 11.2% 11.0% 10.9% Underrepresented Minorities (#) 1 1 1 06
Black or African American 11.0% 10.8% 10.0% Appendix Underrepresented Minorities (%) 11.0% 11.0% 10.0% Hispanic or Latino 4.3% 4.2% 3.6% White 70.0% 70.8% 72.3% Anti-Bribery Policy 2023 Annual 12 Compliance Report Other 3.5% 3.2% 2.7% Human
Trafficking Policy Ethics and Compliance Policies Code of Conduct Diversity by Role (%) Whistleblower Policy Conflict of Interest Policy Manager Level and Above WorkSmart Integrity Hotline Women 50.9% 51.0% 51.7% Whistleblower Reports 0 0 0 Made to
Premier Asian 9.2% 7.6% 7.6% Types of Whistleblower Reports Not Applicable Not Applicable Not Applicable Black or African American 6.0% 6.0% 6.2% Government Relations Hispanic or Latino 4.0% 3.7% 3.2% White 77.9% 81% 80.7% Total Employee Total
Employee Total Employee Other 2.9% 1.7% 2.1% Contributions: Contributions: Contributions: $90,556 $100,097 $109,114 Political Contributions Employees Eligible for 401(k) (%) 99.0% 99.0% 99.0% Total Political through Employee PAC Total Political
Total Political Contributions: Contributions of Contributions: $57,500 100% of first 100% of first 100% of first $46,500 $152,500 3% and 50% of 3% and 50% of 3% and 50% of Employer 401(k) Match (%) next 2% next 2% next 2% Total Lobbying Expenditures
$875,000 $1,000,000 $1,070,000 Employee Resource Groups (#) 7 8 9 46
Sustainability Data Table For reference, the following table highlights
key sustainability metrics and resources related to our operations. FY2024 FY2023 FY2022 00 Introduction IMPROVING COMMUNITY HEALTH 01 Improving 1,202 1,073 329 Total Employee Volunteer Hours Community Health 13 $187,816 $192,952 $208,894 Total
Charitable Giving 02 Ethics And RESPONSIBLE SUPPLY CHAIN Compliance 03 Group Purchasing Code of Conduct Our People Supplier Policies Member Conflict of Interest Policy And Culture Supplier Standards 04 Responsible Supply Chain Contract Portfolio
Composed 05 11% 12% 11% 14 of Diverse Suppliers (%) Environmental Stewardship 06 ENVIRONMENTAL STEWARDSHIP Appendix 15 Environmental Policy GHG EMISSIONS (MTCO e) FY2023 FY2022 FY2021 2 Scope 1 Emissions 208 331 438 Location-based Scope 2 Emissions
1,765 1,576 2,013 Market-based Scope 2 Emissions 980 1,166 1,596 Total Scope 1 and Location-based Scope 2 Emissions 1,973 1,907 2,450 Total Scope 1 and Market-based Scope 2 Emissions 1,188 1,497 2,033 Total Scope 1 and 2 Location-based GHG Intensity
5.98 5.59 6.50 by Floor Area (MTCO e/1,000 square feet) 2 Total Scope 1 and 2 Market-based GHG Intensity 3.60 4.38 5.39 by Floor Area (MTCO e/1,000 square feet) 2 Total Scope 1 and 2 Location-based GHG 1.48 1.33 1.42 Intensity by Revenue (MTCO e/$1
million) 2 Total Scope 1 and 2 Market-based GHG 0.89 1.04 1.18 Intensity by Revenue (MTCO e/$1 million) 2 47
SASB Index The tables below incorporate accounting standards from the
SASB related to Health Care Distributors as well as relevant topics from Medical Equipment and Supplies and Software and IT Services. It includes references to sections within this report where specific topics are discussed in further detail. 00
Introduction SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 Improving ACCOUNTING METRICS: HEALTHCARE DISTRIBUTORS ACCOUNTING METRICS: HEALTHCARE DISTRIBUTORS Community Health SASB SASB 02 SASB TOPIC ACCOUNTING METRIC
RESPONSE SASB TOPIC ACCOUNTING METRIC RESPONSE CODE CODE Ethics And Compliance 03 Our People Description of methods and We rely on third-party transportation And Culture technologies used to maintain providers who use fuel and energy on traceability
of products HC-DI- See the Drug Shortages and our behalf to transport our directly 04 throughout the distribution 260a.1 Traceability section of this report. HC-DI- sourced goods via various modes of Responsible Payload fuel economy. chain and
prevent 110a.1 transportation and therefore do not Supply Chain counterfeiting. have operational control of the fuel consumption needed to calculate 05 this metric. Environmental Stewardship 06 Fleet Fuel Appendix Management Discussion of due
diligence process to qualify suppliers of HC-DI- See the Product Quality and Safety drug products and medical 260a.2 section of this report. Counterfeit Drugs equipment and devices. We exercise a process of continual Description of efforts to reduce
feedback and refinement to optimize HC-DI- the environmental impact of practices that minimize the time, cost 110a.2 logistics. and environmental impact of our order fulfillment operations. Discussion of process for alerting customers and business
partners HC-DI- See the Drug Shortages and of potential or known 260a.3 Traceability section of this report. risks associated with counterfeit Total amount of monetary In FY2024, Premier incurred no products. losses as a result of legal HC-DI-
monetary losses that resulted from proceedings associated with 250a.1 legal proceedings associated with product safety. product safety. Product Safety Description of efforts to minimize health and safety risks HC-DI- See the Product Quality and
Safety of products sold associated with 250a.2 section of this report. toxicity/chemical safety, high abuse potential or delivery. 48
SASB Index The tables below incorporate accounting standards from the
SASB related to Health Care Distributors as well as relevant topics from Medical Equipment and Supplies and Software and IT Services. It includes references to sections within this report where specific topics are discussed in further detail. 00
Introduction SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 Improving ACCOUNTING METRICS: HEALTHCARE DISTRIBUTORS ACCOUNTING METRICS: MEDICAL EQUIPMENT AND SUPPLIES Community Health SASB ACCOUNTING SASB 02 SASB TOPIC
ACCOUNTING METRIC RESPONSE SASB TOPIC RESPONSE CODE METRIC CODE Ethics And Compliance 03 Discussion of strategies to Our People reduce the environmental HC-DI- See the Environmental Sustainability Discussion of process to And Culture impact of
packaging 410a.1 in Procurement section of this report. assess and manage throughout its lifecycle. environmental and human 04 Product Design and health considerations HC-MS- See the Environmental Sustainability Responsible Lifecycle Supply Chain
associated with chemicals 410a.1 in Procurement section of this report. Management in products and meet Product Lifecycle demand for sustainable 05 Management products. Environmental This data is not collected at this time. Stewardship Amount (by
weight) of See the Environmental Sustainability products accepted for HC-DI- in Procurement section of this report 06 take-back and reused, 410a.2 for more information on how we Appendix recycled or donated. incorporate environmental Percentage of
(1) entity’s considerations into our services. facilities and (2) Tier I suppliers’ facilities HC-MS- See the Supply Chain Services participating in third-party 430a.1 section of this report. audit programs Description of efforts to for
manufacturing and minimize conflicts of interest HC-DI- See the Ethics and Compliance product quality. and unethical business 510a.1 section of this report. practices. Description of efforts to See the Drug Shortages and HC-MS- Supply Chain maintain
traceability within Traceability and Direct Sourcing 430a.2 Business Ethics Management the distribution chain. sections of this report. Total amount of monetary In FY2024, Premier did not incur any losses as a result of legal HC-DI- losses as a
result of legal proceedings proceedings associated with 510a.2 associated with bribery, corruption or bribery, corruption or other other unethical business practices. unethical business practices. Description of the management of risks HC-MS- See
the Direct Sourcing associated with the use of 430a.3 section of this report. critical materials. 49
SASB Index The tables below incorporate accounting standards from the
SASB related to Health Care Distributors as well as relevant topics from Medical Equipment and Supplies and Software and IT Services. It includes references to sections within this report where specific topics are discussed in further detail. 00
Introduction SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 Improving ACCOUNTING METRICS: SOFTWARE AND IT SERVICES ACCOUNTING METRICS: SOFTWARE AND IT SERVICES Community Health ACCOUNTING SASB SASB SASB TOPIC RESPONSE
SASB TOPIC ACCOUNTING METRIC RESPONSE 02 METRIC CODE CODE Ethics And Compliance (1) Total energy consumed, For FY2023: (1) Electricity consumption: 03 (2) percentage grid TC-SI- Number of users whose Our People 6,150.73 MWh; (2) % grid electricity:
TC-SI- The use of user information is described electricity, and (3) 130a.1 And Culture information is used for 100%, (3) renewable electricity: 46.6% 220a.2 in our Privacy Notice. percentage renewable. secondary purposes. 04 Responsible Supply
Chain (1) Total water withdrawn, (2) total water consumed, Total amount of monetary In FY2024, Premier did not incur 05 percentage of each in TC-SI- losses as a result of legal TC-SI- any losses, fines or penalties resulting Environmental This data
is not tracked at this time. regions with high or 130a.2 Stewardship proceedings associated with 220a.3 from legal proceedings related to Environmental extremely high baseline user privacy. user privacy. Footprint of Hardware water stress. 06
Infrastructure Appendix Discussion of the In FY2024, Premier’s Chief Privacy integration of Data Privacy (1) Number of law Officer did not receive any requests from environmental TC-SI- See the Facilities Management section and Freedom
enforcement requests for government or law enforcement related considerations into 130a.3 of this report. of Expression user information, (2) number to user information. TC-SI- strategic planning for data of users whose information Consequently,
there were no users 220a.4 center needs. was requested, and (3) whose information was requested and percentage resulting in no resulting disclosures. This response disclosure. excludes requests, if any, that Premier is prohibited from disclosing by
law. Premier aligns digital activities with the laws of the nations in which we operate. Premier’s Privacy Statement is reviewed Description of policies and and updated with reference to Data Privacy Premier’s products and services are
practices relating to TC-SI- standardized processes and tools to List of countries where core subject to customer oversight and and Freedom behavioral advertising and 220a.1 help us comply with applicable laws. In products or services are contract
terms but are not otherwise of Expression user privacy. addition, Premier maintains a number of subject to government- TC-SI- subject to government-required internal privacy-related policies to required monitoring, 220a.5 monitoring (other than
applicable ensure that we have a comprehensive blocking, content filtering or regulatory requirements), blocking, approach to privacy management. censoring. content filtering or censoring. 50
SASB Index The tables below incorporate accounting standards from the
SASB related to Health Care Distributors as well as relevant topics from Medical Equipment and Supplies and Software and IT Services. It includes references to sections within this report where specific topics are discussed in further detail. 00
Introduction SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 Improving ACCOUNTING METRICS: SOFTWARE AND IT SERVICES ACCOUNTING METRICS: SOFTWARE AND IT SERVICES Community Health SASB ACCOUNTING SASB 02 SASB TOPIC
ACCOUNTING METRIC RESPONSE SASB TOPIC RESPONSE CODE METRIC CODE Ethics And Compliance Percentage of gender and 03 (1) Number of data breaches, Recruiting and Our People racial/ethnic group (2) percentage involving See the Cybersecurity Risk And
Culture TC-SI- Managing a Global, representation for (1) TC-SI- personally identifiable Management and Data Privacy section See Sustainability Data Table above. 230a.1 management, (2) technical 330a.3 Diverse and Skilled information (PII), (3)
number of this report. 04 staff and (3) all other Workforce of users affected. Responsible employees. Supply Chain 05 Environmental Total amount of monetary Stewardship In FY2024, Premier did not experience a Intellectual Property losses as a result
of legal TC-SI- monetary loss as a result of legal Protection and proceedings associated 520a.1 proceedings associated with Premier maintains a formal Information 06 with anti-competitive Competitive Behavior Appendix anticompetitive behavior
regulations. Data Security Security Risk Management Program to behavior regulations. continually identify, assess, mitigate, report and monitor security risks across Description of approach to the enterprise. Premier’s Information identifying
and addressing In FY2024, Premier did not experience a TC-SI- Security Risk Management and data security risks, including Number of (1) performance performance or downtime issue that had 230a.2 Compliance team reviews and use of third-party
evaluates the risks identified in the issues, (2) service a material impact on the business that TC-SI- cybersecurity standards. program at least annually. 550A.1 disruptions, (3) total required regulatory reporting to For more information see the
authorities or incurred financial customer downtime. Cybersecurity Risk Management and penalties. Data Privacy section of this report. Risks and potential risks are identified, and incidents (man-made disasters, MANAGING extreme weather, epidemics/
SYSTEMIC RISKS Percentage of employees that pandemics, natural disasters) are FROM TECHNOLOGY TC-SI- are (1) foreign nationals and For FY2024: 2.1% tracked that could result in either 330a.1 DISRUPTIONS (2) located offshore. short- or long-term
disruptions. Description of business Continuity measures are implemented TC-SI- continuity risks related to and monitored as appropriate across Recruiting and 550A.2 business and information technology Managing a Global, disruptions of operations
operations to mitigate identified Employee engagement score vs. global Diverse and Skilled potential materially adverse impacts. benchmark as of spring 2024: 77 Workforce For more information, see the Enterprise (benchmark: 74). Employee engagement
as a TC-SI- Risk Management and Business percentage. 330a.2 Continuity section of this report. For more information, see the Engagement and Retention section of this report. 51
TCFD Index TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT
RECOMMENDATION 00 Introduction Our Board of Directors works closely with our executive leadership team to oversee our sustainability initiatives and business 01 practices, which include climate risks and opportunities as appropriate. Our Board
retains ultimate oversight of enterprise risk Improving Community Health management (ERM) and remains informed through regular reporting and updates, including a standing ERM presentation at each quarterly Board meeting. Furthermore, the Nominating
and Governance Committee (NGC) has primary responsibility for ESG oversight and reports to the full Board regarding ESG matters, such as: 02 Ethics And a) Describe the board’s • Evaluating our approach to climate change. Compliance
oversight of climate- • Reviewing performance related to ESG matters (i.e., progress toward the achievement of climate goals). related risks and • Overseeing corporate communication plans and any reports in connection with climate
initiatives. 03 opportunities. • Monitoring trends, stockholder concerns and emerging issues related to climate that affect Premier and its industry; Our People consulting with management; and making recommendations to the Board regarding
overall ESG matters. And Culture In carrying out its responsibilities for climate oversight, the NGC coordinates with the Board and its standing committees on 04 climate-related subjects, including risk management as needed, to ensure adequate
oversight and awareness. Responsible Supply Chain Governance 05 Environmental Premier’s ESG Steering Committee also plays a key role in governing our overall sustainability strategy and priorities, including Stewardship climate impacts. The
ESG Steering Committee is directed by and composed of cross-functional senior leaders who meet quarterly to develop and drive Premier’s sustainability objectives. The group provides updates to the NGC on our ESG program 06 and climate matters,
emerging trends, and stakeholder engagement. Appendix b) Describe management’s role in In addition, Premier’s General Counsel is the executive-level lead for our initial initiatives to manage and, going forward, attempt assessing and
managing to reduce our emissions and to ensure we meet the stated requirements as defined in the Health Sector Climate Pledge (which climate-related risks and Premier signed in FY2023). opportunities. If an issue being reviewed by any business unit
is identified as a material, climate-related issue, it may be brought to management for consideration and review of risk impact. 52
TCFD Index TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT
RECOMMENDATION 00 Introduction 01 Premier recognizes that human health is inextricably linked to the planet’s health. Climate change has increased and will Improving continue to increase the incidence and complexity of many health issues like
asthma, especially in vulnerable and Community Health disadvantaged populations. Climate change is also expected to trigger physical and economic impacts, including infrastructure and supply chain disruptions. 02 Ethics And Compliance a) Describe
the climate-related In FY2024, climate change was not identified as a stand-alone risk through our ERM process. However, we recognize risks and opportunities the that several risks that emerged through this process have potential to be intensified
by both physical and transitional company has identified over the climate change-related drivers. These include risks related to macroeconomic conditions, governmental affairs and 03 short, medium and long terms. regulatory compliance, business
continuity and organizational resiliency, and third-party and vendor relationships. These Our People And Culture risks are outlined in more detail in our latest Annual Report. Premier understands our role as a player in the healthcare industry and
expects to continue adapting to changing public 04 Responsible health needs as health conditions emerge and intensify due to climate change. We anticipate opportunities emerging as Supply Chain we respond to these changing health needs and as we
work toward mitigating our impact on climate change. 05 Environmental Stewardship Premier is committed to taking measured steps to address the impact of climate-related risks and opportunities as part of our overall investment in the key ESG topics
most relevant to our business. Strategy 06 Premier’s business continuity and disaster recovery efforts help us to mitigate the potential impacts of acute, physical Appendix climate events on our business. For more information, please see
Business Continuity and Disaster Recovery. b) Describe the impact of climate-related risks and In FY2022, we began to calculate our Scope 1 and 2 GHG emissions to better understand our climate impact. In FY2023, opportunities on the company’s
we designated our General Counsel as our executive-level lead for our emissions reduction initiatives. In FY2024, we businesses, strategy and began assessing the relevance and materiality of Scope 3 emissions and commenced climate resilience
planning efforts. financial planning. These efforts will help inform Premier’s strategic decisions around our supply chain and business operations. Our continued evolution in this space is discussed quarterly with our ESG Steering Committee to
determine how we will apply resources to advance our climate initiatives. c) Describe the resilience of the In FY2024, Premier began the process of developing a climate resilience plan in alignment with our commitment to the company’s
strategy, taking into U.S. Department of Health and Human Services (HHS) Health Sector Climate Pledge. This plan leverages the U.S. Office consideration different climate- of Climate Change and Health Equity’s framework for climate resilience
plans to evaluate climate risk, assess related scenarios, including a 2°C vulnerabilities and bolster stakeholder engagement. or lower scenario. 53
TCFD Index TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT
RECOMMENDATION 00 Introduction Premier has established a robust risk management framework (see Enterprise Risk Management and Business 01 Continuity) and continues to build capacity to complement our sustainability-conscious ERM program, enabling:
Improving • A thorough organizational knowledge of sustainability, promoting the capture of emerging sustainability risks. Community Health • Assessments revealing sustainability opportunities as well as risks. • Measurement
(qualification and quantification) of sustainability risks. a) Describe the company’s processes 02 • Common language and standards across enterprise functions, increasing collaboration, coverage, rigor, Ethics And for identifying and
assessing consistency in management and reporting. Compliance climate-related risks. If climate-related risks arise, these risks are evaluated to determine associated impacts on each business unit and 03 are considered as part of our quarterly ERM
process. Results are presented to a collective group of individuals and Our People executive team members for confirmation and then presented to the Board each quarter. And Culture 04 Responsible Supply Chain To manage physical climate risks, our
Business Continuity and Disaster Recovery Plan is designed to minimize disruption to our service delivery in the event of a physical climate event or natural disaster. Key business 05 continuity and infrastructure recovery capabilities are validated
through third-party audits and through Environmental Risk companywide tabletop exercises at least annually. Stewardship Management In addition, our Disaster Response Community team is focused on ensuring business continuity for our members 06 b)
Describe the company’s processes during a hurricane, fire, tornado or other emergency. We monitor all areas of the U.S. for natural disasters and other Appendix for managing climate-related risks. disruptive events that could affect our
members, suppliers or employees. We are frequently in contact with local, state and national government organizations, such as the Federal Emergency Management Agency, the National Hurricane Center and the appropriate state emergency management
agency, during disasters. To mitigate possible regulatory transition risks, Premier actively monitors the Securities and Exchange Commission and other institutions for potential and upcoming regulations and how they will impact our various
businesses. Impacts of upcoming financial regulations are presented to the Audit and Compliance Committee, as needed. c) Describe how processes for identifying, assessing and managing Although climate change was not identified as a material risk in
FY2024, climate-related risk identification, climate-related risks are integrated assessment and management is encompassed within our overall risk management process. into the company’s overall risk management. 54
TCFD Index TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT
RECOMMENDATION 00 Introduction a) Disclose the metrics used by the Premier measures our Scope 1 and 2 GHG emissions annually and quantifies the intensity of our emissions to better 01 company to assess climate-related Improving understand our
climate impact. Please see GHG Emissions (MTCO e) Table for our GHG emissions-intensity 2 risks and opportunities in line with its Community Health figures. As we continue to advance our climate initiatives, we will evaluate other key performance
indicators that strategy and risk management could enable us to better track and assess climate risks and opportunities. process. 02 Ethics And Compliance 03 Premier annually evaluates its Scope 1 and 2 GHG emissions. In FY2024, Premier also began
assessing the Our People b) Disclose Scope 1, Scope 2, and, if And Culture relevance and materiality of Scope 3 emission categories. appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. Please see the GHG Emissions (MTCO e)
Table for more information about our GHG emissions. 04 2 Responsible Supply Chain Metrics and 05 Environmental Targets In FY2023, Premier joined the HHS Health Sector Climate Pledge, demonstrating our commitment to lowering Stewardship GHG emissions
and building more climate-resilient infrastructure. As a part of this voluntary pledge, we committed to the following: 06 1. At minimum, reduce organizational emissions by 50% by 2030 (from a baseline no earlier than 2008) and achieve Appendix net
zero by 2050, publicly accounting for progress on this goal every year. 2. Designate an executive-level lead for our work on reducing emissions by 2023 and conduct an inventory of c) Describe the targets used by the Scope 3 (supply chain) emissions
by the end of 2024. company to manage climate-related 3. Develop and release a climate resilience plan for continuous operations by the end of 2023, anticipating the risks, and opportunities and needs of groups in our communities that experience a
disproportionate risk of climate-related harm. performance against targets. As noted above, since committing to this pledge, we have designated our General Counsel as our executive-level lead and improved data management practices for our annual
Scope 1 and 2 GHG assessment. In FY2024, Premier also began assessing the relevance and materiality of Scope 3 emission categories. While we did not meet the target of creating a climate resilience plan by the end of 2023, we began the process of
developing a plan in FY2024 that leverages the U.S. Office of Climate Change and Health Equity’s framework for climate resilience plans, which was completed in early FY2025. 55
SDG Index The UN Sustainable Development Goals (SDGs) are a
collaborative, global effort to achieve a better and more sustainable future for all. Represented by 17 global goals and 169 targets, the SDGs address challenges of poverty, inequality, climate change, environmental degradation, and peace and
justice. Below we have identified the SDGs on which we believe we can have the greatest influence and impact through our business strategy, products and services. 00 Introduction REPORT REPORT GOAL TARGET PREMIER’S IMPACT GOAL TARGET
PREMIER’S IMPACT SECTION 01 SECTION Improving Community Health Premier is driven by our mission to improve the health Through our Sourcing Education and Enrichment for of communities. We are uniquely positioned to enable Diverse and Small
Suppliers program, we aim to 02 better care and outcomes at a lower cost, and we Ethics And increase the number of small, diverse and regional support our alignment with SDG 3 through our data Compliance enterprises doing business with members of
our and analytics capabilities, collaboratives, and healthcare alliance; support diverse and small 8.8 - Protect advocacy efforts. [Target 3.8] business enterprises; enable them to grow; and 03 Labor Rights Our People provide coaching, mentoring and
business and Promote And Culture We help healthcare providers and policymakers better educational tools to help them develop strategic Safe Working understand underserved populations, the severity of Responsible long-term relationships with our
members. [Target Improving Patient Environments Supply Chain health-related problems and the root causes of 04 8.3] Outcomes and Responsible disparate outcomes, connecting providers to best Lowering Costs Supply Chain Employee Health 8.5 - Full
practices and care bundles for remediation. Some of Premier’s commitment to a safe and healthy work and Safety Employement 3.8 - Achieve the initiatives we have in place include: Advocacy to environment extends to our overseas supply chain and
Decent Universal • Premier’s PINC AI™ Applied Sciences, which was 05 Improve operations. Through our work with Bureau Veritas, an Environmental Work with Healthcare recognized for advancing health equity and access Community Health
international social compliance audit organization, Stewardship Equal Pay Coverage to care for diverse patient populations across the Premier has established criteria for our contracted Improving Health U.S. manufacturing factories in East and
Southeast Asia Through 06 • Premier’s Health Equity Collaboratives, a network that require them to ensure a safe, healthy work Appendix Community of healthcare organizations that aims to improve environment; compensation that adheres to
local law; Development the quality of healthcare for historically and no indentured servitude. [Target 8.8] underserved populations. The Health Equity Collaborative provides data our members need to address the health equity issues pertinent to the
communities they serve. 12.6 - • Premier’s Government Affairs Network, which has Encourage This report constitutes Premier’s fourth year of ESG successfully advocated for legislation that helps Companies to reporting. We have also
established ESG structures, bridge the care gap and reduce disparities in care Adopt including an ESG Steering Committee that meets for underserved communities and populations. Our Approach Sustainable quarterly, to ensure progress toward our
sustainability to Sustainability Practices and goals. [Target 12.6] Sustainability Responsible We believe the positive impact of our diversity, Reporting Premier maintains Supplier Standards and a Group Supply Chain equity, inclusion and belonging
approach is far- Purchasing Code of Conduct governing our 5.5 - Ensure reaching, not only within our company but also for the 12.7 - Promote relationships with vendors in our supply chain. These Full communities and members we serve. Premier is
Sustainable policies are designed to ensure integrity in our supply Diversity, Equity, Participation in committed to equal opportunity and pay equity in the Public chain. [Target 12.7] Inclusion and Leadership workplace and has various programs in
place to Procurement Belonging and Decision- ensure women thrive in our professional environment. Practices making [Target 5.5] Advocacy to Improve 5.6 - Universal Premier’s political advocacy efforts include working Community Health Access to
with Congress and other policymakers to advance Reproductive data-driven policies aimed at helping solve disparities Health and in access to and quality of maternal-infant care. Rights These advocacy efforts focus on improving access to healthcare
for underserved populations. [Target 5.6] 56
SDG Index The UN Sustainable Development Goals (SDGs) are a
collaborative, global effort to achieve a better and more sustainable future for all. Represented by 17 global goals and 169 targets, the SDGs address challenges of poverty, inequality, climate change, environmental degradation, and peace and
justice. Below we have identified the SDGs on which we believe we can have the greatest influence and impact through our business strategy, products and services. 00 Introduction REPORT 01 GOAL TARGET PREMIER’S IMPACT Improving SECTION
Community Health 02 13.1 - We calculate our Scope 1 and Scope 2 emissions Ethics And Compliance Strengthen annually and evaluate ways to potentially reduce our Resilience and associated footprint. When possible, we have taken Adaptive steps to
reduce or stabilize our GHG footprint, such 03 Capacity to as promoting energy conservation at our offices and Our People Environmental And Culture Climate facilities. [Target 13.1] Stewardship Related Disasters Enabled by our data-driven approach,
forward- 04 Environmental Responsible thinking supply chain teams are driving continued Sustainability in Supply Chain 13.3 - Build green innovations in healthcare that cut costs over Procurement Knowledge the long term, reduce environmental impact
and 05 and Capacity minimize negative consequences on public health. Environmental to Meet Our Environmentally Preferred Purchasing Advisory Stewardship Climate Council helps our GPO members identify sustainable Change products, packaging and
services. [Target 13.3] 06 Appendix 57
ESG Materiality Assessment Definitions The following table lists the
definitions of each of the 24 key ESG factors that surfaced through our ESG Materiality Assessment completed during FY2022. Please see Our Approach to Sustainability for more information regarding this assessment and how Premier is incorporating it
into its approach to sustainability. 00 BUSINESS MODEL AND INNOVATION HUMAN CAPITAL Introduction Providing a work environment that promotes diversity of gender, ethnicity, Preparing for and managing potential crises and risks that may impact the
Business Model Resilience and 01 Diversity, Equity and Inclusion sexual orientation, physical ability, age, religious or personal beliefs and Systemic Risk Management business. Improving socioeconomic background. Community Health Researching,
developing and offering products that integrate environmental, Employee Engagement, 02 ESG Impacts of Products and Implementing programs and policies that attract and retain talent. social and governance considerations and take advantage of consumer
trends Training and Development Ethics And Services and interests in sustainability. Compliance Labor Practices and E Upholding fair labor practices for all employees. 03 mployee Well-Being Understanding and minimizing the risks associated with
climate change and Our People Impacts of Climate Change their impacts on the company. And Culture ENVIRONMENT 04 Ensuring compliance with applicable laws and regulations and upholding ethics Management of the Legal and Responsible Measuring and
minimizing the usage and impacts from the company’s data Energy Management Regulatory Environment and values when engaging in activities that may influence public policy. Supply Chain centers and energy consumption. 05 Establishing strategies
to reduce the environmental impacts and risks Understanding and ensuring that the entire value chain, including suppliers, Environmental Management Environmental throughout the company’s operations and facilities. Supply Chain Management and
Stewardship aligns with the company’s business ethics, including social and environmental Human Rights performance. Greenhouse Gas Measuring and minimizing greenhouse gas emissions wherever feasible 06 (GHG) Management throughout the
company’s operations and facilities. Appendix GOVERNANCE AND LEADERSHIP Measuring and minimizing the production of waste wherever feasible throughout Recycling and Waste Promoting and accurately sharing the structure of the company’s
Board to Management the lifecycle of the company’s products and services. Board Independence and Diversity ensure effectiveness and representation of stockholder values. Measuring and minimizing the usage and impacts from water consumption
Water Management wherever feasible throughout the company’s operations and facilities. Ensuring that the company’s values, standards and norms are ethical and Business Ethics managed throughout business operations. WATER MANAGEMENT
Ensuring oversight and management of environment, social and governance Governance of “ESG” Taking measures to ensure the accessibility and inclusiveness of products Access and Affordability topics throughout the company’s
operations. and services. Protecting and mitigating the risks associated with personally identifiable Implementing anti-competitive practices and behaviors that address the issues Intellectual Property and Customer Privacy information (PII) and user
data. Anti-Competitive Behavior associated with monopolies. Establishing an information and cybersecurity system that is secure, resilient Data Security and reliable. Actively seeking input from stakeholders to incorporate into business strategies
Stakeholder Engagement and priorities. Customer Welfare Promoting and protecting customer well-being by minimizing the health and and Product Safety safety risks of product offerings. Philanthropy and Volunteerism Supporting and establishing
positive relations with communities. Establishing and sustaining processes to ensure that products meet quality Product Quality and Supply Chain Integrity standards in accordance with regulatory requirements. 58
Citations and Footnotes 1. This data is considered “protected
health races. 00 information” and is in compliance with the Introduction 8. Market-based emissions are those privacy rules set forth within the Health estimated after factoring in power 01 Insurance Portability and Accountability purchase
agreements and renewable Improving Act of 1996. Community Health energy certificates. 2. We cannot provide assurances that 02 9. MTCO e means “metric tons of carbon 2 Ethics And we will not experience cybersecurity Compliance dioxide
equivalent.” Total emissions incidents in the future or that any future numbers may not sum due to rounding. 03 cybersecurity incidents will not materially Our People 10. Location-based emissions are those And Culture affect us, including our
business estimated based on local grid power strategy, results of operations or financial 04 sources. condition. Responsible Supply Chain 11. For additional information on Premier’s 3. Benchmark data is from the GLINT ethics and compliance
programs and 05 December 2023 Benchmark Study. Environmental practices, please see the Ethics and Stewardship 4. Premier also has employees who visit Compliance and Governance Documents and work with our healthcare members. 06 sections of our
website. Appendix Any employees that perform work on a 12. Includes full-time employees who self- member site are also subject to member identify as Native Hawaiian, Pacific safety protocols. Islander, American Indian, Alaskan Native, 5. Benchmark
data is from the GLINT or two or more races. December 2023 Benchmark Study. 13. Includes cash donations, matched 6. Represents percent of total workforce, donations and Volunteer Hours Program. which includes all full-time and part- 14. Includes
agreements with minority-, time employees as of June 30, 2024 and women- and veteran-owned companies excludes contractors. and small business enterprises. 7. Includes full-time and part-time 15. Policy approved in October 2022. employees who
self-identify as Native Hawaiian, Pacific Islander, American Indian, Alaskan Native, or two or more 59
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