AzHHA is actively gathering member feedback on the potential operational and financial impacts of these bills on hospitals and health systems. Senator Werner has announced a stakeholder roundtable to further discuss these measures, which is scheduled for Monday, Jan. 26, 2026.
The House Health and Human Services Committee is holding a special meeting this Thursday afternoon, in lieu of the Monday holiday.
AzHHA legislative priorities update: All but one of AzHHA’s priority bills have now been posted, and the final bill is expected by the end of this week. Current priorities include:
HB2176 – Health facilities; licensure; complaints; investigations
We will continue to provide weekly updates on these bills and other priority issues as they progress through the legislative process.
Member-only Friday legislative calls: A reminder that members must complete the new registration process to participate in the Friday legislative calls.
After registration, you will receive a Zoom email with calendar links for the event. If you have questions or encounter any issues with registration or calendar access, please contact Donna Di Orio.
What’s next: The AzHHA policy and advocacy team continues to track and review all bills introduced this session.
If you have questions about any legislation or would like to discuss potential impacts on your organization, please contact Damien Johnson, director of government relations.
Governor Hobbs releases FY 2027 budget proposal
On Friday, Jan. 16, 2026, Governor Katie Hobbs released her proposed budget.
AzHHA applauds the Governor for prioritizing healthcare access and system stability in Arizona, highlighting critical investments that support patients and healthcare providers.
Her budget includes a number of one-time General Fund appropriations in response to H.R. 1, including:
Continuing the additional $4 million ($12 total funds) CAH supplemental payment.
$4 million to increase funding for the 988 behavioral health crisis hotline.
$3 million to support Arizonans navigating new Medicaid requirements or transitioning to other coverage or services.
$500,000 for AZREACH to coordinate acute medical transfers between hospitals, supporting rural Arizonans.
$14 million and 150 FTEs to minimize disruptions from Medicaid changes through beneficiary assistance and critical care coordination services.
$48 million and 146 FTEs to offset increased administrative costs and compliance burdens imposed on the Supplemental Nutrition Assistance Program (SNAP).
Additionally, her budget includes a number of other ongoing General Fund items, including:
Eliminating the $100 million Hospital Assessment Fund transfer beginning after the current fiscal year.
$1 million in ongoing funding to continue operations of the Arizona Perinatal Access Line.
$5 million for the Arizona Health Care Cost Containment System (AHCCCS) to provide pre-release services to incarcerated individuals beginning 90 days before release.
$800,000 for newborn screening.
$10 million for extreme heat mitigation.
$18 million to keep individuals in the Division of Developmental Disabilities in Home and Community Based Services settings.
What’s next: This proposal marks the beginning of the budget process, and AzHHA will continue working with state leaders as the Legislature develops and finalizes the FY 2027 budget.
White House pushes new health agenda as Capitol Hill revives 2024 deal
President Trump is urging Congress to codify his newly-released Great Healthcare Plan, a one-page framework that calls for a broad array of policies.
The proposed reforms include lowering prescription drug prices by enacting the most-favored-nation deals negotiated by the president; making more pharmaceuticals available over-the-counter; sending payments to eligible Americans instead of continuing Affordable Care Act (ACA) subsidies; reducing cost sharing for marketplace enrollees; ending pharmacy benefit manager “kickbacks;” codifying broad new transparency rules for insurers; and requiring providers to “publicly and prominently” post pricing and fees “on the wall.”
Some of the plan’s biggest concepts could face procedural constraints if Republicans try to move them through the strict budget reconciliation process that requires only 50 votes for passage in the Senate.
On Capitol Hill, a bipartisan, bicameral group is dusting off a policy compromise from late 2024.
The new package reportedly includes reforms targeting pharmacy benefit manager practices, site-neutral related limits on how hospitals bill for outpatient services and extensions of expiring Medicare flexibilities including telehealth.
Negotiators have indicated the revived package could have a vehicle in the late-January government funding package.
GOP leaders are also reportedly weighing whether a narrower slice of President Trump’s plan could be advanced on this bipartisan track instead of through budget reconciliation.
Meanwhile, the fight over the enhanced ACA premium tax credits remains unresolved.
The credits expired at the end of 2025, and premiums have doubled for many marketplace enrollees.
The House has pockets of bipartisan support for renewal, but the Senate still lacks a clear path to the votes needed for a clean extension, leaving the subsidies’ future uncertain as affordability becomes an important issue for the midterm elections.
Help us make a difference - contribute to the AzHHA PAC
Every day, elected officials’ decisions affect the health of Arizona’s people, patients and communities.
Why it matters: Last week marked the beginning of a new legislative session in Arizona.
AzHHA Political Action Committee (PAC) funding is essential to help us support those who align with our purpose and promote initiatives beneficial to healthcare in Arizona.
How your support drives impact
Safeguard care: Your support keeps essential services available in rural and underserved communities.
Influence outcomes: Together, hospitals speak with one voice on payment models, preparedness and oversight.
Build resilience: Strong advocacy ensures hospitals can continue supporting Arizona’s families, communities and workforce.
The bottom line: Your contribution fuels the advocacy that keeps Arizona’s healthcare system strong and responsive.
Every dollar counts towards advancing health and healthcare in Arizona.
Register now: 2026 AzCHER Medical Response and Surge Exercise
Join the AzCHER team for the 2026 Medical Response and Surge Exercise (MRSE).
Why it matters: This exercise is designed to enhance your preparedness, foster collaboration and identify and address gaps in your response capabilities.
Who should register?
Acute care hospitals
Behavioral health hospitals
Long-term care facilities
State, tribal and county emergency management and public health departments
Emergency medical services
Transfer centers
Exercises will be held by region:
Central region: 9 a.m. to 2 p.m. on Wednesday, April 1, 2026
Southern region: 9 a.m. to 2 p.m. on Wednesday, April 8, 2026
Northern region: 9 a.m. to 2 p.m. on Tuesday, April 28, 2026
Western region: 9 a.m. to 2 p.m. on Wednesday, April 29, 2026
If you have questions or need more information, please reach out to Central Region Manager Jamie Beauvais.
Q4 2025 Healthcare Labor Market Report
From stabilizing bill rates to evolving labor laws, the healthcare workforce continues to change — and staying ahead of the curve is more important than ever.
National and regional bill rate trends across physicians, advanced practice, nursing, allied health and therapy to support budgeting and sourcing decisions.
A focused workforce briefing covering policy, regulatory activity and market developments shaping hospital staffing strategy heading into 2026.
Why it matters: Whether you’re navigating contract labor challenges today or planning for tomorrow, this report provides the insights you need to make informed decisions.
To connect with an Adaptive Workforce Solutions representative, email Lisa Scalarone.
AzPHA call for submissions
The Arizona Public Health Association (AzPHA) invites proposals for presentations at its 2026 Annual Conference on Friday, May 1, 2026, focused on improving care and treatment for people with mental and behavioral health needs in Arizona.
Many sessions will be grounded in Arizona’s Medicaid behavioral health system and its intersection with public health, housing, courts and community-based care.
Priority will be given to sessions that are evidence-based, practice-focused and relevant to Arizona.
What’s next: Presentation proposals are due by Monday, Feb. 9, 2026.
Wednesday, Feb. 11, 2026 - Overview of Arizona hospital assessments and HEALTHII payments Join us for a 1-hour member’s only webinar for a concise, practical overview of Arizona’s hospital assessments and the HEALTHII payments that are now a major source of hospital reimbursement statewide. We will explain how the assessments work, how funds flow and why they are critical to supporting AHCCCS coverage and provider payments, then turn to major federal changes ahead, including assessment cap reductions under P.L. 119‑21 (the One Big Beautiful Bill) and CMS’s move to embed state‑directed payments into managed care rates beginning in 2027. AzHHA members who did not receive an email and would like to attend may reach out to Donna Di Orio.
Friday, Feb. 13, 2026 - The Hertel Report Winter State of the State This bi-annual conference offers networking and timely insights on Arizona’s healthcare market, including Medicaid, Medicare Advantage, the Affordable Care Act Marketplace, ACOs and commercial trends. Speakers include AzHHA’s SVP of Policy and Advocacy Helena Whitney. AzHHA members can use coupon code AZHHA2026 for $15 off. Register here.
Tuesday, Feb. 17, 2026 - Arizona Rural and Public Health Policy Forum Join the 2026 Policy Forum for in-depth discussions on pressing rural and public health policy issues and their impact on communities statewide. This year’s forum will feature insights into legislative priorities for the upcoming session and conclude with a special networking reception. Learn more and register.
Save the Date: 2026 Arizona Hospital Leadership Conference Mark your calendar for the AzHHA Foundation’s 2026 Arizona Hospital Leadership Conference, taking place Oct. 21–23 at the El Conquistador Tucson, a Hilton Resort. This annual gathering brings together hospital and healthcare leaders from across the state for engaging discussions, networking and forward‑focused learning. Additional details, registration information and sponsorship opportunities will be shared in the coming months. Questions may be directed to Communications@azhha.org.
