House Appropriations proposing deep HHS cuts as Congress races toward Sept. 30 deadline.
Next Tuesday’s early bird deadline for the 2025 Arizona Hospital Leadership Conference.
More than 1,000 HHS employees calling for RFK Jr. to resign.
House Appropriations proposes deep HHS cuts as Congress races toward Sept. 30 deadline
As Congress returns from its summer recess, lawmakers are racing against the clock: they have just 26 days before government funding expires on Tuesday, Sept. 30, 2025.
Most leaders acknowledge that a continuing resolution (CR) will be needed to avert a shutdown, but the length and scope of that CR remain unsettled.
One option gaining consideration is a CR that would keep the federal government funded through mid-November; however, the Administration has signaled it would prefer to fund the federal government through December or into early 2026.
On Tuesday, a House Appropriations subcommittee approved nearly $24 billion incuts to the U.S. Department of Health and Human Services (HHS) along with the Departments of Labor and Education.
The fiscal year 2026 funding bill would cut the HHS budget by $7 billion, including eliminating the Centers for Disease Control and Prevention (CDC) programs for HIV/AIDs prevention, terminating the Agency for Healthcare Research and Quality and reducing funding for various public health and workforce initiatives.
However, the bill stops well short of the Administration’s proposed $20 billion in cuts to the National Institutes of Health.
The appropriations bill would allocate $100 million to the proposed Make America Healthy Again initiative, which would support rural health, telehealth and nutrition programs.
What’s next: The bill will go to the full House Appropriations Committee for a vote.
Register now: Early bird deadline is Tuesday
Last chance to receive the early bird discount on registration for the 2025 Arizona Hospital Leadership Conference!
What you need to know: You must register by Tuesday, Sept. 9, 2025, to receive the discount.
Take advantage of our buy five – get one free offer for teams.
We also offer early bird member ($600) and non-member ($900) rates.
Conference registration prices will increase next week, so don’t wait!
More than 1,000 HHS employees call for RFK Jr. to resign
In the midst of turmoil at the U.S. Department of Health and Human Services (HHS), more than 1,000 current and former HHS employees have called for the resignation of Secretary Robert F. Kennedy Jr.
Employees across the agency, including those at the Centers for Disease Control and Prevention (CDC), the National Institutes of Health and the Food and Drug Administration, point to a series of actions they urge are a threat to public health.
These include Secretary Kennedy’s firing of CDC Director Susan Monarez – an action that precipitated the resignations of three other top agency officials, the appointment of members to the CDC’s vaccine advisory panel with histories of vaccine skepticism and the rescinding of the FDA’s emergency use authorizations for COVID-19 vaccines.
This appeal follows an earlier letter signed by more than 750 current and former HHS employees, along with 6,000 additional online supporters, warning that Secretary Kennedy’s spread of misinformation is jeopardizing public safety.
The letter charges Secretary Kennedy with fostering a climate where politically driven rhetoric, rather than evidence-based guidance, places staff at risk. That letter has remained unanswered.
These escalating calls for action deepen the controversy stemming from extensive workforce cuts: more than 20,500 HHS employees have departed or been dismissed under the Administration’s policies, with the CDC alone losing at least 15% of its workforce by current estimates.
Aetna introduces new reimbursement policy for Medicare Advantage inpatient stays
Effective Saturday, Nov. 15, 2025, Aetna will implement a new reimbursement policy for Medicare Advantage (MA) hospital stays that span one or more midnights.
This change applies specifically to cases where a member is urgently or emergently admitted and the provider has submitted an inpatient order.
Under the new approach:
Aetna will approve inpatient stays without conducting a medical necessity review.
Claims will be reimbursed at a lower severity rate, comparable to the rate typically paid for observation services.
If the inpatient stay meets Milliman Care Guidelines (MCG)—specifically Aetna’s supplemental guidelines for inpatient admissions—the claim will be paid at the full inpatient rate, in accordance with the hospital’s contractual agreement.
Importantly, Aetna will not use MCG to determine medical necessity, but rather to assess the severity of the admission and whether it justifies the inpatient contracted rate.
This policy does not apply to stays of less than one midnight, which will continue to be subject to medical necessity reviews using Centers for Medicare and Medicaid Services guidelines.
This policy shift raises several concerns for hospitals:
By approving inpatient stays but reimbursing them at observation rates, Aetna may effectively “downgrade” claims without issuing formal denials.
Since these cases are not denied outright, internal and external data may reflect fewer denials, masking the financial and operational impact on providers.
Hospitals may find it difficult to identify which claims were paid at lower rates, complicating efforts to appeal or reconcile reimbursement discrepancies.
The policy may conflict with existing hospital contracts that define reimbursement methodologies based on inpatient status, not severity assessments.
The ask: AzHHA is seeking feedback from providers on how much this policy will impact them.
Please provide comments to Amy Upston, director of financial policy and reimbursement.
AzHHA HR Roundtable: Join us Thursday, Oct. 9, 2025!
The Arizona Hospital and Healthcare Association (AzHHA) invites HR leaders to our second in-person HR Roundtable of 2025.
Why it matters: Connect with peers, share insights and tackle key workforce topics together.
Join us from 10 a.m. to 2:30 p.m. on Thursday, Oct. 9, 2025, at the AzHHA offices in downtown Phoenix.
What’s happening:
Small group discussions on survey-driven topics.
The Mahoney Group presents on employee benefits—share your input in their quick survey.
Policy and legal updates regarding the One Big Beautiful Bill Act.
What’s next: Advance registration is requested for space accommodations and meal preparation.
Sponsored by The Mahoney Group, there is no registration fee, and lunch and parking will be complimentary.
Get to know them: Talkiatry is a national, physician-led behavioral health medical group and the largest private employer of psychiatrists in the U.S.
With over 650 W-2 providers, they partner with hospitals and health systems nationwide to expand access to high-quality outpatient psychiatric care—delivered virtually via telehealth.
Why it matters: Their model delivers appointments in as little as five days, is in-network with over 90% of commercial insurance and Medicare, and requires no contracts—allowing referrals to start immediately.
Using a simple EMR-integrated workflow, providers can refer patients in just a few clicks and receive closed-loop updates to ensure continuity of care.
Talkiatry manages outreach, scheduling, insurance verification and treatment, helping systems reduce ED utilization, hospitalizations and costs while improving outcomes.
The big picture: With proven clinical results and comprehensive rollout support, Talkiatry offers a scalable, no-cost solution that meets growing behavioral health needs without adding operational burden.
Introducing MSP Flex™ for small and rural hospitals
An endorsed AzHHA partner, Adaptive Workforce Solutions has just released MSP Flex™—an exclusive program for smaller and rural hospitals.
Why it matters: It delivers the efficiency, visibility and cost savings of a full-sized managed service program—without the complexity or exclusive commitment.
Whether staffing needs involve a few temporary roles or a larger workforce, MSP Flex™ scales to fit organizational needs and budgets.
AzHHA members are invited to participate in a live product information webinar at 11:30 a.m. on Thursday, Oct. 2 to learn about careLearning’s Learning Management System (LMS).
Why it matters: The LMS offers cost-effective eLearning solutions, regulatory compliance tracking and healthcare-related courses.
Members can access exclusive discounts and fee waivers through this longstanding partnership.
Staff who will benefit include staff educators, human resources, nursing managers and compliance officers.
What’s next: To register, email careLearning’s Derrick Stowers directly.
UPCOMING EVENTS
Thursday, Sept. 11 - Federal Privacy Protections for Patients Receiving SUD Treatment in Integrated Settings Training Join the Center of Excellence for Protected Health Information and NASADAD for a free virtual training that will describe key privacy considerations for patients’ SUD treatment records that originate from a Part 2 program or provider within integrated health settings. Learn more and register.
Tuesday, Sept. 16 - National Voter Registration Day Help those in your community get #VoteReady for upcoming state and local elections. Check out voter registration resources including how to register to vote/check registration, steps to get ready for the 2025 elections and more.
Wednesday, Sept. 24 - 12th Annual Tribal Summit Join Blue Cross Blue Shield of Arizona Health Choice for an in-person event in Flagstaff, Ariz., focused on understanding tribal health, building stronger partnerships and supporting culturally informed care across Arizona. This one-day, free summit will bring together Tribal and non-Tribal healthcare providers, Tribal leaders and community organizations to discuss pressing health topics. Register here.
Friday, Sept. 26 - Arizona Bioethics Network 13th Annual Conference This hybrid event will bring together scholars from various disciplines to explore the ethical questions that shape health in a global context. This year’s conference theme is “The Interconnected World: The Ethics of Global Health Policy.” Learn more and register.
Wednesday, Oct. 1 - 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.
Oct. 29-31 – 2025 Arizona Hospital Leadership Conference The 2025 Arizona Hospital Leadership Conference will be held at the exquisite Loews Ventana Canyon Resort in Tucson on Oct. 29-31. This will be an inspirational gathering of more than 200 hospital and healthcare executives seeking opportunities for continuing education, meaningful discussion and relationship building. Registerby Tuesday, Sept. 9, 2025, to receive an early bird discount.
Friday, Nov. 7 - Peer support training for health professionals The Wellbeing Collaborative is offering a powerful in-person training for healthcare professionals interested in building or strengthening peer support programs in their organizations. This interactive training includes real-world strategies, hands-on practice and expert guidance to promote connection, resilience and psychological safety across teams. Learn more and register.
