Financing Healthcare

Arizona's hospitals turn to AzHHA to advocate for their financial health in a variety of settings - the Arizona Legislature, Arizona Health Care Cost Containment System (AHCCCS), Congress, Medicare and the managed care arena.

AzHHA members collaborate in a variety of ways to support a financially viable hospital community for the patients they serve. For example, members who serve on AzHHA's Council on Government Relations advance the Association's financial advocacy mission by focusing on legislative and regulatory issues affecting the needs of hospitals and health systems and their communities. And other groups, such as the member-driven Managed Care Committee, are formed to address a specific need or situation.

The financial issues AzHHA has addressed with the support and involvement of its members include:

  • Improving in the speed of payor payments. AzHHA formed the Managed Care Committee to address the lack of timely payment from various payors. The results? Over a five-year period, the average number of days in accounts receivable dropped from 76 to 59 days and the percentage of commercial insurance claims more than 60 days old declined from 35 to 28 percent.
  • Creating of a new Phoenix Wage Index. AzHHA brought together Phoenix-area hospitals in a collaborative effort to demonstrate to CMS the need for a new wage index was needed. This effort impacted CMS payments to hospitals throughout the Phoenix metropolitan area.
  • Investigating of AHCCCS underpayment to small, rural hospitals. AzHHA's advocacy, coupled with member involvement, resulted in the $12 million ($4 million state and $8 million federal) SAVE Rural Hospitals Fund.
  • Implementating of an annual cost of living increase in AHCCCS outpatient payments. AzHHA and member advocacy helped ensure the new outpatient payment system includes an annual cost of living increase. Without this "escalator," hospital outpatient payments from AHCCCS would be stalled at 2003 levels.
  • Modifying of the Disproportionate Share Hospitals (DSH) payment plan. AzHHA joined forces with the American Hospital Association to advocate for changes in the payment plan that ultimately benefited numerous small, rural hospitals in Arizona.

Additional Resources

Look for additional Medicare information in the following sections of the AzHHA website:

AzHHA members impact the future of healthcare in Arizona by serving on committees, councils, task forces and work groups that guide the Association and help shape its position on key issues. Click on the link below to see a complete listing of these groups and their committee chairs.

Want to learn what's happening at AzHHA and in the broader healthcare community? Check the AzHHA Calendar of Events for updates on AzHHA meetings, educational programs, hospital events and important dates on the legislative calendar.