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This week, read about: AzHHA joining key partners in celebrating the signing of HB2173 and HB2175. T

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Connection Newsletter

By AzHHA Communications June 5, 2025

Smart Brevity® count: 5 mins...1307 words

This week, read about:

  • AzHHA joining key partners in celebrating the signing of HB2173 and HB2175.

  • The CBO estimating over $1 trillion in healthcare cuts in OBBB Act and Senate negotiations continuing.

  • The 2025 Member Survey.

AzHHA joins key partners in celebrating the signing of HB2173 and HB2175

June 6, 2025 bill signing ceremony

On Wednesday, June 4, 2025, AzHHA joined the Arizona Nurses Association and the Arizona Medical Association for a ceremonial bill signing with Governor Hobbs and bill sponsor Representative Julie Willoughby (R-Dist. 13).

  • The event (photo above) celebrated the signing of two priority bills for AzHHA this session, HB2173 and HB2175, both of which align with our policy agenda, shaped by member leadership.

HB2173 – mental health inquiry; prohibition

  • This legislation prohibits health profession regulatory boards and licensing authorities from inquiring about an applicant’s mental health treatment history, diagnoses or help-seeking on licensure applications.

  • While the Arizona Medical Board had already eliminated this question from its applications, HB2173 codifies that change into law, ensuring consistency across all healthcare professions in Arizona.

HB2175 – prior authorization; claims

  • As part of our broader push for health plan accountability, HB2175 requires medical directors at health insurance companies to personally review denials related to medical necessity, both for prior authorizations and claims.

  • This is a significant step, as the use of artificial intelligence in healthcare decisions is rapidly expanding.

Still no budget deal: We continue to monitor the behind-the-scenes negotiations as both chambers work to align Arizona’s FY26 budget.

  • With less than a month remaining, AzHHA remains in regular communication with legislative leadership, key staff and the Governor’s Office.

Our top budget priorities include:

  • Reducing the clawback of hospital assessment dollars.

  • Continuing the one-time increase to the critical access hospital supplemental pool.

As always, please reach out to Damien Johnson, director of government relations, with any questions.

CBO estimates over $1 trillion in healthcare cuts in OBBB Act; Senate negotiations continue

On Wednesday, June 4, 2025, the Congressional Budget Office (CBO) released a cost estimate that the House-passed One Big Beautiful Bill Act (OBBB) would add approximately $2.4 trillion to the national debt over the next decade.

  • The CBO also found that the healthcare section of the bill, including cuts to Medicaid and the Affordable Care Act, total over $1 trillion and will result in 10.3 million Americans losing health insurance.

The big picture: This CBO report comes on the heels of President Trump’s insistence that the bill includes no cuts to Social Security, Medicare or Medicaid.

  • The White House does not view spending reductions that ensure that undocumented immigrants do not receive benefits, require more eligibility checks, clamp down on fraud, waste and abuse, and require Medicaid beneficiaries to work or sign up for education, training or volunteering as cuts.

  • The House-passed bill also contains a freeze on Medicaid provider taxes among other changes.

  • Certain members of the GOP have disparaged the CBO’s estimate, and press secretary Karoline Leavitt has called the CBO “partisan and political” with a bias toward Democrats.

Meanwhile, negotiations in the Senate continue over changes to make to the House-passed version of the bill with hopes of passing the OBBB before Friday, July 4, 2025.

  • Majority Leader John Thune is facing pressure from “Medicaid moderates” including Josh Hawley and Susan Collins on one side and deficit hawks such as Rand Paul on the other.

  • The Medicaid moderates appear to approve of the bill’s Medicaid work requirements but not the freeze on provider taxes or the proposed co-pays.

What’s next: Any changes made to the legislation by the Senate will then need to be passed by the House.

2025 Member Survey is live!

Illustration of a red cross as a share icon.

AzHHA has launched its annual member survey.

  • This survey is for CEOs of member hospitals only.

Why it matters: The survey helps us understand if we are meeting the needs of our members with policy and advocacy work as well as additional services and programs.

The big picture:

  • The survey will run until 5 p.m. on Wednesday, June 11, 2025.

  • All CEOs of AzHHA member hospitals received the survey link via email on Monday, June 2, 2025.

  • It will take no more than five minutes to complete.

What’s next: If you are in the target audience for this survey, please check your email for the direct link to the survey and share your feedback.

Questions? Contact Laura Dickscheid at MemberServices@azhha.org.

AzHHA member webinar: Leveraging price transparency data for strategic payer conversations

A computer displaying a healthcare symbol.

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.

  • Anticipate and address common payer pushback.

Register now

Welcome new hospital member - Kayenta Alternative Rural Hospital

A welcome mat.

AzHHA is excited to welcome a new hospital member, Kayenta Alternative Rural Hospital, an Indian Health Service (IHS) facility that is part of Kayenta Service Unit.

Get to know our new member: Located in Kayenta, Ariz., and within Navajo County, the hospital maintains 10 beds and serves a population of approximately 20,000 people spread over a remote part of the state.

  • Mariva Plummer is the chief executive officer.

Please join us in welcoming Kayenta Alternative Rural Hospital!

Community Health Improvement Week

Hospital plus being pulled down by people. People are in the shadow of the plus.

Next week, June 9-13, 2025, is Community Health Improvement Week.

Why it matters: This annual celebration is a time to celebrate partnerships that are helping to build stronger, healthier communities.

Get involved: Your organization and partners can highlight this week in several ways:

  1. Spread the word: Download the digital engagement toolkit for ready-to-use graphics, sample social media posts and newsletter content.

  2. Share your stories: Create content such as blog posts, digital banners, flyers or a short video highlighting your organization’s community health improvement work, then share your story with the American Hospital Association.

  3. Learn together: Plan an in person or virtual event to increase awareness of your organization’s community and population health work.

Spotlight: Debbie Johnston retires

Photos from Debbie's retirement celebration.

After 21 years of service, AzHHA celebrates the retirement of Debbie Johnston - an extraordinary leader and advocate for Arizona’s hospitals and health systems.

Why it matters: Debbie has been a pillar of AzHHA’s policy and advocacy efforts - bringing intelligence, curiosity and unwavering dedication to every challenge.

  • Her deep historical knowledge of Arizona health policy is unparalleled, and her work has helped shape the healthcare landscape across our state.

Please join us in honoring Debbie and her incredible contributions to Arizona healthcare.

PAC promotion

UPCOMING EVENTS

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.

Save the date: 2025 Arizona Hospital Leadership Conference
Mark your calendar and plan to engage with healthcare leaders during the AzHHA Foundation’s 2025 Arizona Hospital Leadership Conference. This year’s conference is Oct. 29-31, 2025, at the Loews Ventana Canyon Resort in Tucson, Ariz. Stay tuned for more information!

IN THE NEWS

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