DHS re-issuing notice of rulemaking on increasing licensing fees.
A federal court requiring drug companies to obtain HHS approval before implementing 340B rebates.
Budget reconciliation update
The House Rules Committee started lengthy negotiations in the early morning hours on Wednesday, May 21, 2025, to resolve disputes and prepare for floor consideration of the House's budget reconciliation bill, dubbed the "One Big Beautiful Bill," which is facing delays in the House Rules Committee due to internal Republican conflicts.
Reasons for the delay include:
Members of the House Freedom Caucus, like Representative Chip Roy (R-TX), are calling for deeper Medicaid cuts and the removal of clean energy tax credits to ensure greater fiscal responsibility.
Republicans from high-tax states, such as New York, want a higher increase in the State and Local Tax (SALT) deduction cap than the proposed raise from $10,000 to $30,000.
The Congressional Budget Office estimates the bill could add around $3.8 trillion to the deficit over the next decade, raising alarms among fiscal conservatives and budget hawks.
House Speaker Mike Johnson remains determined to push the bill forward. AzHHA will continue to monitor the negotiations and progress on this bill.
DHS re-issues notice of rulemaking on increasing licensing fees
On Friday, May 16, 2025, the Arizona Department of Health Services (ADHS) issued a notice of rulemaking pertaining to increasing application and licensing fees for healthcare institutions.
This notice is substantially similar to the notice published on May 31, 2024.
ADHS maintains that the increases are needed to cover heightened costs and expenses for the department, including the need to hire more surveyors.
The current fees went into effect on Jan. 1, 2010.
The notice does not provide a timeline for the submission of public comments or for any agency actions on the proceeding.
Federal court requires drug companies to obtain HHS approval before implementing 340B rebates
On Thursday, May 15, 2025, the U.S. District Court for the District of Columbia ruled that the U.S. Department of Health and Human Services (HHS) has authority to preapprove the implementation of 340B rebate models.
The case was brought by Eli Lilly, Bristol Myers Squibb, Sanofi, Novartis and technology company Kalderos.
The plaintiffs argued that drug companies should be able to unilaterally replace upfront discounts with backend rebates.
Judge Dabney Friedrich rejected this argument, finding that the Health Resources and Services Administration (HRSA) acted lawfully in requiring drug manufacturers to obtain approval before implementing their proposed rebate models.
The court also directed HRSA to reconsider a rebate plan from Sanofi that regulators had denied.
Why it matters: Drug manufacturers must pay hospitals upfront discounts for drugs in the 340B program unless they get preapproval from HRSA to implement a rebate model.
The court did not expressly prohibit 340B rebate models.
What’s next: A separate lawsuit filed in the same court by Johnson & Johnson in November is still pending.
Johnson & Johnson argues that its proposed 340B rebate model is legal and asks the court to block HHS’s attempts to prohibit its implementation.
Arizona Transition to Practice Program launches new offering for new to specialty nurses
The Arizona Transition to Practice Program will continue to offer our program for new graduate registered nurses.
Why it matters: This program aims to provide nurses transitioning to new specialty areas with evidence-based content to help them become competent more rapidly and offer opportunities for professional growth with an added benefit of specialty certification preparation.
What you need to know:
Any Arizona healthcare facility licensed by the Arizona Department of Health Services that hires registered nurses may apply.
To be eligible for participation, the nurses must have their RN license and limited experience with the new area of specialty.
Priority is given to critical access hospitals or hospitals located in counties with a population of less than 500,000 people with a focus on facilities serving the underserved.
Participation in the program is voluntary, and there is no cost to join.
Specialty offerings are available in a variety of areas including emergency department, intensive care unit/critical care, progressive care unit, medical-surgical nursing, obstetrics and operating room.
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.
⚠️Last chance: Apply now for the 2025 AzHHA Quality Awards
Showcase your work: TheThird Annual AzHHA Quality Awards provides 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.
The deadline for submissions isat 5 p.m. on Friday, May 30, 2025.
What’s next: The outstanding achievements will be honored at the AzHHA Quality Awards Luncheon on Wednesday, Oct. 29, 2025, during the 2025 Arizona Hospital Leadership Conference.
AzHHA member webinar: Leveraging price transparency data for strategic payer conversations
Intellimed will host a webinar from 12 to 12:45 p.m. on Thursday, June 12, 2025 on Zoom for AzHHA members.
Why it matters: This session will provide an in-depth look at how hospitals can use Intellimed’s newly available transparency in coverage (TIC) data to support strategic payer negotiations.
This federally mandated data is available to AzHHA members and includes published reimbursement rates from payers offering unprecedented insights into market-rate comparisons.
Participants will learn how to:
Benchmark reimbursement rates against market norms.
Identify gaps and opportunities for improvement.
Strengthen negotiation strategies with practical use cases.
Welcome new hospital member - Dilkon Medical Center
AzHHA is excited to announce a new hospital member, Dilkon Medical Center part of Winslow Indian Health Care Center.
Get to know our new member: The 12-bed hospital is a tribally owned and operated 638 acute care facility located in Dilkon, Ariz., about 40 miles east of Winslow in Navajo County.
The chief executive officer is Virgil Davis, a 30-year administrator within Indian Health Services.
AzHHA extends a warm welcome to Dilkon Medical Center!
May is Mental Health Awareness Month
This month is a time to raise awareness and reduce the stigma surrounding behavioral health conditions.
It’s also important to highlight the ways how mental illness and addiction can affect all of us, including patients, providers, families and our society as a whole.
Get involved: Here are some resources to help you share information and participate in this month:
This week is National EMS Week with the theme of “We Care. For Everyone.”
This is a time to show gratitude toward everyone involved in emergency medical services (EMS) and educate the public about the essential services these professionals provide.
As part of this week of celebration, the Arizona Department of Health Services Bureau of Emergency Medical Services and Trauma System recognized Emergency Medical Care Technicians and trauma care professionals.
We’d like to extend congratulations to two individuals at Mt. Graham Regional Medical Center, an AzHHA hospital member, for winning awards:
Shanna Cluff, Trauma Program Manager of the Year (Level IV Trauma Center)
Bart Carter, MD, Trauma Medical Director of the Year (Level IV Trauma Center)
Spotlight: AzCHER supports Greer Fire emergency response efforts
Left photo: Governor Katie Hobbs is briefed on the Greer Fire.
Right photo: AzCHER's Shawna Murphy, center, near a command van.
In response to the Greer Fire, the Arizona Coalition for Healthcare Emergency Response (AzCHER) has diligently provided situational awareness of the fire to White Mountain Regional Medical Center and has been receiving critical updates about their capacity and needs during this critical time.
Additionally, AzCHER has been serving as the liaison between the hospital and the Arizona Department of Health Services.
Why it matters: These updates support a coordinated response by ensuring key stakeholders are informed of healthcare system impacts and needs.
Go deeper: AzCHER also provided assistance to the VA Hospital in Phoenix by helping prepare an evacuation plan for a veteran living in the SET zone of the fire.
The team was able to provide comprehensive support for the veteran, his son and four dogs.
Thank you to the AzCHER team for your efforts during this emergency situation.
UPCOMING EVENTS
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.
Thursday, May 29 - The Mental Health Journey Through Reproductive Evolution During Maternal Mental Health Month, join the Desert Star Institute for Family Planning for a powerful and insightful virtual panel discussion. This vital conversation will explore the often-unseen mental health dimensions woven through our reproductive lives. Register now.
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.
American Indians into Health Professions Summer Program - applications due Friday, June 13, 2025 The University of Arizona offers a week-long summer program designed to serve tribal youth and adults interested in health professions. The youth program (high school juniors and seniors) is July 21-25 and the adult program (age 18+) is July 28-Aug. 1. For application information, email jupshaw@arizona.edu.
