How AzHHA is starting May on a high note with several victories at the Arizona Legislature.
Republicans delaying Medicaid markup.
Registration information for the 2025 AzCHER Conference.
Walking into May with momentum and major wins!
AzHHA is entering May on a high note, having achieved several significant victories at the Arizona Legislature. But first, here’s where things stand as of this week:
Days of session: 115
Bills posted: 1,679
Bills passed: 222
Bills vetoed: 87
Bills signed: 135
Now for the exciting news—several of AzHHA’s top priority bills have reached the Governor’s desk, and one has already been signed into law:
Sponsored by Senator Hildy Angius (R-Dist. 30) and signed by Governor Hobbs on Friday, May 2, 2025, this bill represents more than three years of dedicated advocacy for health plan accountability.
It shortens the provider’s credentialing timeline to 60 days and, notably, allows for retroactive claims payments during that process.
This makes Arizona one of the first—if not the first—states to implement retroactive payments during credentialing.
A significant win for both hospitals and providers, helping to ensure timely patient care without financial risk.
Sponsored by Representative Julie Willoughby (R-Dist. 13), this bill, developed in collaboration with hospitals and the broader provider community, addresses the improper use of automated systems and artificial intelligence in denying claims.
It requires that all medical necessity denials be evaluated by a licensed medical director exercising independent clinical judgment.
This is a significant step forward for patient-centered care and in reducing administrative burdens.
The bill is now on the Governor’s desk awaiting signature, and AzHHA has submitted a letter urging support.
Sponsored by Representative Willoughby, this legislation enhances awareness and access to care related to postpartum depression, especially in rural communities.
It directs the Arizona Department of Health Services to provide educational materials during the prenatal and postpartum periods and establishes a new advisory committee to address the obstetric and maternal mental health needs of rural populations.
The bill is on its way to the Governor’s desk, and AzHHA has submitted a letter urging her support.
What’s next at the Capitol: The House has voted to recess until Tuesday, May 20, 2025, while budget negotiations continue behind the scenes.
The Senate has also agreed to a similar break after today.
With all our priority bills now on the 9th floor, our advocacy team will begin shifting its focus to budget-related work.
A note of thanks: We want to extend our deepest gratitude to our hospital members who actively engaged with lawmakers throughout the session.
Your outreach has made a meaningful difference—legislators listen to their constituents, and your voices have been crucial in driving these wins forward. Thank you for your continued partnership and support.
If you have any questions or would like to discuss the legislative activity in more detail, please don’t hesitate to contact Damien Johnson, director of government relations, via email at djohnson@azhha.org or by phone at 623-680-7198.
We appreciate your continued engagement and support.
The House Energy and Commerce Committee has delayed its markup pertaining to the budget reconciliation bill for at least another week.
Vulnerable GOP members are wary of the political repercussions of cutting Medicaid, which 70 million Americans rely upon.
As of Tuesday, May 6, 2025, Speaker Mike Johnson indicated that the GOP will not include a Federal Medical Assistance Percentage (FMAP) reduction for Affordable Care Act (ACA) Medicaid expansion populations in the budget reconciliation bill.
It is unclear whether the GOP has eliminated the idea of imposing per capita caps, which would place limits on the amount of federal funding for ACA expansion populations.
A centrist proposal Republicans are considering emphasizes work requirements, more frequent eligibility checks and strict limits on coverage for noncitizens.
The Congressional Budget Office (CBO) sent a letter to the Senate Finance Committee and the House Energy and Commerce Committee on Tuesday, which estimates that:
Prohibiting states from using provider taxes would result in 3.9 million Americans losing their health insurance.
Imposing per capita caps on beneficiaries eligible for Medicaid through the ACA Medicaid expansion would result in 1.5 million Americans losing their health insurance.
Lowering the FMAP for Medicaid expansion enrollees would result in 2.4 million Americans losing coverage.
What you can do: Continue speaking with your Representatives and Senators about the consequences of federal funding cuts to Medicaid emphasizing the repercussions of per capita caps and a prohibition on provider assessments.
Register now: 2025 AzCHER Conference
Join the Arizona Coalition for Healthcare Emergency Response (AzCHER) for its fifth annual conference from 7:30 a.m. to 4 p.m. on Wednesday, June 11, 2025, at the Arizona Broadway Theatre.
Why it matters: In these challenging times, our teams need inspiration, connection and support more than ever.
We’ll focus on addressing those needs and on the critical areas of readiness, response and recovery.
Together, we’ll explore and deliver insights on these topics, ensuring we are prepared for any situation, can respond effectively and recover swiftly.
AHA report highlights hospital financial challenges
Last week the American Hospital Association (AHA) issued a report on hospital financial challenges.
Why it matters: The report shows that “hospitals face a perfect storm of financial pressures: persistent cost growth, inadequate reimbursement and shifting care patterns driven by both policy changes and an older, sicker population with more complex, chronic conditions.”
Some challenges mentioned in the report include:
In 2024, hospitals expenses grew by 5.1% compared to 2.9% for overall inflation.
The advertised salaries for registered nurse positions increased 27% more than the cost of inflation over the past four years.
Hospitals lost $100 billion in Medicare underpayments in 2023 with Medicare only paying 83% of costs.
Tariffs pose significant challenges for hospitals since almost 70% of medical devices are manufactured outside of the U.S. and 30% of active pharmaceutical ingredients come from China.
Medicare Advantage (MA) plans have longer inpatient stays and lower reimbursement than traditional Medicare.
The average length of stay prior to discharge for a post-acute care facility for individuals with an MA plan doubled relative to traditional Medicare between 2019 and 2024
MA prior authorizations increased 40% from 2020 to 2023.
⌛Time is running out! Apply now for the AzHHA Quality Awards
The deadline for submissions for theThird Annual AzHHA Quality Awards is fast approaching! This is an opportunity for member hospitals and healthcare facilities to highlight a recent project, within the last 12 months, in:
Clinical Excellence
Outstanding Patient/Community Impact
A Top Overall Excellence Award will also be presented.
Why it matters: These awards celebrate and recognize Arizona’s leaders committed to advancing healthcare with exceptional quality performance, community engagement and a culture of continuous improvement.
Submissions are due at 5 p.m. on Friday, May 30, 2025.
⚠️Deadline approaching: Arizona Transition to Practice Program applications for fifth cohort
The application deadline for the fifth cohort of the Arizona Transition to Practice Program for New Graduate Registered Nurses beginning in July 2025 is fast approaching!
Applications are due Monday, May 12, 2025.
Already applied? The Arizona Transition to Practice Program team will reach out to you soon.
Why it matters: With this program, we aspire to create an environment where our nurses can transition seamlessly from academia to practice, gaining the confidence and competence they need to provide the best possible quality care to our communities.
The big picture:
Any Arizona healthcare facility licensed by the Arizona Department of Health Services that hires new graduate registered nurses may apply.
Priority will be given to critical access hospitals or hospitals located in counties with a population of less than 500,000 people.
Hospitals with existing 12-month Transition to Practice programs are not eligible.
What’s next: The site champion information session is at 10 a.m. on Wednesday, May 28, 2025.
Hospitals are required to submit a number of annual hospital financial reports:
Annual audited financial statements (AFS) and attestation are due 120 days after the hospital’s fiscal year end.
Uniform Accounting Reports (UARs) and attestation are due 150 days after the hospital’s fiscal year end.
Medicare Cost Reports (MCRs) are due 150 days after the hospital’s fiscal year end.
The statement of cash flow (unless included in the AFS) is due 150 days after the hospital’s fiscal year end.
Hospital charge description master are due prior to any subsequent rate changes.
Why it matters: The Arizona Department of Health Services (ADHS) has the authority to fine hospitals which submit these items late, and the Arizona Health Care Cost Containment System (AHCCCS) uses these reports for a number of items, including for providing supplemental payments.
What's next: By the end of May, all hospitals should have submitted the UARs, MCRs, AFS, statement of cash flow, and required attestations for hospital fiscal year 2024.
Additional information and instructions can be found on ADHS’ website. For questions related to this process, please email costreporting@azdhs.gov.
AHCCCS conducts MCO survey
The Arizona Health Care Const Containment System (AHCCCS) is conducting a survey on its Managed Care Organizations (MCOs) through Saturday, May 31, 2025.
In particular, they are asking for feedback from healthcare providers regarding satisfaction with each contracted MCO for:
MCO claims
Customer service
Credentialing
Prior authorization
Quality measures
Access to Non-Title XIX/XXI services education
What’s next: AHCCCS will use the results of the survey for process improvement.
Celebrating National Nurses Week
Every year, May 6-12 is designated as National Nurses Week to celebrate the invaluable contributions of nurses worldwide and the real-life challenges they face every day.
This year’s theme is “The Power of Nurses.”
Why it matters: Whether you’re a nurse, a healthcare professional, a patient or simply someone who appreciates the critical role nurses play in our lives and society, National Nurses Week is the perfect time to share your gratitude and celebrate nurses.
AzHHA would like to express our heartfelt thanks and gratitude for all of the nurses who make a difference in the lives of patients and our communities every single day.
Maternal Mental Health Awareness week
This week (May 5-11) helps spread the word about maternal mental health awareness.
One way you can help raise awareness, is to share the Health Resources and Services Administration’s (HRSA) National Maternal Mental Health Hotline (1-833-TLC-MAMA).
Why it matters: It’s a free and confidential service offering 24/7 support via call or text to new and expecting moms and their loved ones.
The Hotline is available in English and Spanish and offers interpreters in more than 60 languages.
Want to help raise awareness for the Hotline? Use HRSA’s promotional toolkit.
The big picture: AzHHA is a proud leader in the effort to improve maternal mental health through the Arizona AIM Collaborative.
In January, we launched two important care bundles focused on perinatal mental health and supporting pregnant and postpartum people with substance use disorders.
We’re proud to see Jennifer Mendryzycki of TMC Health take the stage at the AHA Annual Meeting, sharing insights on becoming an effective advocate for hospitals and health systems. 👏
Jennifer and the TMC Health team are standout leaders in healthcare advocacy—sharing best practices for engaging elected officials and driving impact.
📣Why it matters: Advocacy is essential to protecting and advancing Arizona healthcare. We’re proud to support our members who are leading the charge.
The big picture: AzHHA President & CEO Ann-Marie Alameddin, SVP of Policy & Advocacy Helena Whitney and several AzHHA members are also in D.C. this week for our congressional delegation hill visits.
UPCOMING EVENTS
Wednesday, May 14 - Az Community Grand Rounds This webinar will discuss the impacts of heat-related health risks in Arizona, effective mitigation strategies, and how to access and utilize available resources to support members in the community including vulnerable populations. Register here.
Wednesday, May 14 - AHA Workshop: Community health and the environment The workshop will be held in Scottsdale, Ariz. and will bring together frontline hospital leaders in community health strategy, population health and emergency planning to better understand opportunities and challenges related to addressing community health and the environment. Interested in attending? Contact Sean Thorton or Andrew Jager.
Friday, May 16 - Emerging Technology and Tools - What are the Risks? Join the Association for Healthcare Quality of Arizona for this virtual event to explore the latest advancements in digital health, human factors, compliance and emerging technologies. This event features speakers, interactive discussions and practical insights to help you navigate the evolving landscape of healthcare innovation.Learn more and register.
Wednesday, May 28 - Introduction to POLST Join physician orders for life-sustaining treatment (POLST) paradigm for their one-hour virtual workshops equipping healthcare professionals with knowledge and resources to begin using POLST in Arizona. Register here.
May 28-30 - Az HFMA "Rev Up Your Rev Cycle" 2025 Spring Conference Join other healthcare financial experts for an exciting conference in Scottsdale, Ariz. Hear from CFOs, revenue cycle experts, state and federal policy experts, AHCCCS and more. Register today.
