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This week, read about: Two AzHHA priority bills being signed into law. AzHHA submitting comments on

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Connection Newsletter

By AzHHA Communications May 15, 2025

Smart Brevity® count: 6 mins...1615 words

This week, read about:

  • Two AzHHA priority bills being signed into law.

  • AzHHA submitting comments on OMB RFI on deregulation.

  • The deadline extension for cohort five applications for the Arizona Transition to Practice Program.

The Legislature may be on break, but the Governor’s pen is not

Fountain pen and journal

While both chambers are adjourned for a brief break, Governor Hobbs has been actively reviewing the more than 100 bills sent to her desk last week. We’re pleased to report some significant wins for Arizona hospitals.

Two final AzHHA priority bills signed into law: We are thrilled to announce that Governor Hobbs signed both HB2175 and HB2332 into law earlier this week, marking the successful passage of all AzHHA legislative priorities for the session.

  • HB2175 (prior authorization; claims)

    • This bill ensures that all medical necessity denials are reviewed by a licensed medical director who must exercise independent clinical judgment.

    • It addresses the improper use of automated systems and artificial intelligence in denying care, protecting patient access to appropriate treatment.

  • HB2332 (postpartum health; education; advisory committee)

    • This legislation expands access to postpartum mental health support, particularly in rural Arizona.

    • It requires the Arizona Department of Health Services (ADHS) to distribute educational materials during the prenatal and postpartum periods and establishes an Advisory Committee on Obstetrics, Gynecology and Maternal Mental Health in Rural Communities.

A necessary veto: SB1268 blocked

Yes, but: While we celebrate the advancement of proactive legislation this session, not all advocacy is about passing bills—some is about stopping harmful policy.

  • Earlier this week, Governor Hobbs vetoed SB1268, a measure that would have required hospitals to collect and report immigration or citizenship status on patient admission forms.

  • AzHHA formally lobbied against this bill, raising concerns about the increased administrative burden, the risk of collecting inaccurate data and, most importantly, the potential harm to the provider-patient relationship.

What’s next: Though the legislature is on recess, budget negotiations are quietly underway behind the scenes.

  • Based on the conversations we’ve had, we anticipate significant discussions related to Arizona’s FY25 budget will take center stage next week.

  • AzHHA’s advocacy team continues to monitor developments closely and will keep members informed as new details emerge.

AzHHA submits comments on OMB RFI on deregulation

Stethoscope

On Monday, May 12, 2025, AzHHA submitted comments on the Office of Management and Budget’s (OMB) request for information (RFI) on deregulation.

Why it matters: In April, OMB issued an RFI, asking for information on rules to potentially rescind or replace “that are unnecessary, unlawful, unduly burdensome or unsound.”

AzHHA recommended a number of regulations for consideration including:

  • Standardizing more insurance-related administrative transactions.

  • Making all Center for Medicare and Medicaid models voluntary.

  • Repealing outdated COVID-19 reporting mandates.

  • Resuming virtual low-risk complaint surveys.

  • Removing a number of telehealth restrictions, including originating and geographic site restrictions.

  • Eliminating or streamlining excessive administrative burdens that pull providers away from patient care, such as streamlining care plan documentation requirements.

🚨Deadline extended: Arizona Transition to Practice Program applications for fifth cohort

Image of nurses

The application deadline for the fifth cohort of the Arizona Transition to Practice Program for New Graduate Registered Nurses beginning in July 2025 has been extended.

  • Applications are due Monday, May 19, 2025.

  • Already applied? The Arizona Transition to Practice Program team will reach out to you soon.

Apply now

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.

Questions? Email TTPProgram@azhha.org.

Stand up for Arizona hospitals - support the AzHHA PAC

PAC Donation

The AzHHA Political Action Committee (PAC) is more than a fundraising effort; it is our shared commitment to protecting healthcare access and quality across Arizona.

Why it matters: Policy decisions made at the Capitol directly shape the care available in your community.

  • By supporting the AzHHA PAC, you help ensure that hospitals in urban, rural and every location in between have a powerful voice in that process.

This is about more than politics.

  • It’s about standing with your fellow nurses, doctors and frontline teams who care for us all.

  • It’s about defending the future of healthcare in our state.

The bottom line: If you believe in strong hospitals, healthy communities and smart healthcare policy, then this is your cause. Whether a one-time gift or a recurring commitment, your contribution helps shape a better tomorrow.

Donate now

President Trump’s proposed budget includes substantial healthcare reductions

Illustration of a health plus peeling back revealing a hundred dollar bill on the reverse side.

Last week the Trump Administration released its Fiscal Year (FY) 2026 (Oct. 1, 2025 through Sept. 30, 2026) budget.

Why it matters: While this is the first step in the FY 2026 budget process, Congress may incorporate some of the Administration’s proposal into the final budget.

By the numbers: Overall, the proposal reduces spending for the Department of Health and Human Services (HHS) by 26% from the current year, a $94 billion reduction.

The proposal includes:

  • A $674 million reduction for the Centers for Medicare and Medicaid Services (CMS), including reductions for health equity and beneficiary outreach and educational activities.

  • Reductions of $1.7 billion for Health Resources and Services Administration (HRSA) cuts and consolidations, including $1 billion for healthcare workforce programs and $274 million for maternal and child health programs.

  • Reducing the Administration for Strategic Preparedness and Response Hospital Preparedness Program by $240 million.

  • A $1.1 billion reduction for Substance Abuse and Mental Health Services Administration grants.

  • An increase of $500 million for the Make America Healthy Again initiative which would focus on nutrition, physical activity, healthy lifestyles and food and drug safety.

The proposal does not include reductions for Medicaid and Medicare services since Congress is exploring potential cuts.

Member spotlight: Northern Cochise Community Hospital

Northern Cochise Logo

TMC Health has named Gary Kartchner as the new chief executive officer of Northern Cochise Community Hospital in Wilcox, Ariz.

  • Gary will also continue in his current role as CEO of Benson Hospital, a position he has held since September 2023.

This dual appointment reflects TMC Health’s strategic effort to align leadership across its rural hospitals in Cochise County, enhancing care coordination, quality and the overall patient experience for residents in both communities.

The big picture: Gary, a registered nurse with a master’s degree in nursing leadership, was born and raised in Benson. His familiarity with the region and commitment to rural healthcare made him a natural choice for the expanded role.

Congratulations, Gary!

From teaching to nursing: One new grad’s journey through the Arizona Transition to Practice Program

Arizona Transition to Practice Program logo

Lauren Carpenter, a former teacher turned new graduate nurse, began working at Aurora Behavioral Health System – Tempe in early 2024.

Why it matters: Since then, the program has helped Lauren build confidence, navigate workplace challenges and find reassurance in her new role.

  • Lauren credits regular check-ins with her mentor and preceptor as a major part of her success and is now applying to nurse practitioner programs with the support of those around her.

Read her story

The big picture: The shift from nursing school to professional practice can be overwhelming—especially in rural and underserved areas where resources may be limited. That’s where the Arizona Transition to Practice Program steps in.

  • Designed to support newly registered licensed nurses, the program offers structured mentorship, peer support and live learning opportunities to help ease the transition into clinical practice.

Arizonans for Better Healthcare promotion

UPCOMING EVENTS

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.

Tuesday, May 20 - Training to Readiness: Advancing Emergency Preparedness Across Health Centers
Participants will increase their emergency preparedness knowledge and contribute to assessing the training strategies and content delivered through the All-Hazards Competencies curriculum. Attendees will understand how they can use the training curriculum to improve their health center’s preparedness. Register now.

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.

Wednesday, June 11 - 2025 AzCHER Conference
Join the Arizona Coalition for Healthcare Emergency Response (AzCHER) for its fifth annual conference. In these challenging times, our teams need inspiration, connection and support more than ever. The conference will focus on addressing these needs and on the critical areas of readiness, response and recovery. Register by Tuesday, June 3, 2025.

IN THE NEWS

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