Bills with strike-everything amendments on the agendas of the House and Senate Appropriations committees.
Arizona’s Rural Health Transformation Program website going live.
The Sponsorship Prospectus for the 2026 Arizona Hospital Leadership Conference.
STRIKE…everything kind of week
The wheels are still turning at the Arizona Legislature, just a bit slower than some might expect during an election year.
Most committees finished their hearings on bills from the opposite chamber last week. The House and Senate Appropriations committees were the only exceptions, given an extra week to review bills beyond the regular deadline.
Because of that extension, both agendas were filled with bills that included strike-everything amendments. This tactic allows lawmakers to take one bill and completely replace its original contents with new language from another measure.
Here’s what it looked like this week:
House Appropriations: 25 bills on the agenda, 17 with strike-everything amendments
Senate Appropriations: 24 bills on the agenda, seven with strike-everything amendments
What is everyone else up to?
Members not serving on either appropriations committee still attended floor sessions in both chambers each day up to the publication deadline.
That said, the calendars were lighter than usual for this point in the session. We believe the slower pace is due to budget negotiations remaining paused following the Governor’s Office's halt of discussions amid disagreements over Proposition 123 funding.
The bottom line: Things might seem slow, but that's normal when budget talks stall.
Most of the real decision-making is happening behind the scenes.
Once everyone agrees on the budget, expect activity at the Arizona Capitol to ramp up quickly.
Arizona’s Rural Health Transformation Program website is live
Last week, the Arizona Health Care Cost Containment System (AHCCCS) launched a new Rural Health Transformation Program (RHTP) site which will serve as the central hub for updates, guidance and key information as the state moves forward with RHTP planning and the application process.
Why it matters: Arizona’s RHTP represents a $167 million annual investment for five years to strengthen healthcare delivery in rural communities across the state.
The grants focus on building the rural health workforce, tackling healthcare challenges, expanding access to care and strengthening rural health systems.
What’s next: In the coming weeks, AHCCCS will post additional details, including information on upcoming webinars and stakeholder engagement opportunities to help stakeholders better understand the program and inform Arizona’s proposal.
According to the website, grant funding opportunities will be posted in April and May, with Year 1 grants awarded by August 2026.
2026 Arizona Hospital Leadership Conference Sponsorship Prospectus now available
Join this year’s Sponsorship Program for the 2026 Arizona Hospital Leadership Conference, Oct. 21-23 in Tucson, Ariz., and have the enhanced ability to reach more than 200 hospital and healthcare industry leaders.
Choose from bundled options at the Title, Quality Awards Luncheon, Platinum, Gold or Silver level, or select an a la carte Bronze option.
The big picture: By sponsoring the AzHHA Foundation’s 2026 Arizona Hospital Leadership Conference, you will have opportunities to:
Gain corporate exposure and brand visibility with healthcare decision-makers.
Secure exclusive, high-impact networking time with hospital executives in an intimate setting to build meaningful connections.
Attend conference sessions, including keynote and breakout sessions on Thursday and Friday.
Achieve insight into Arizona’s healthcare community, including strengths and issues.
Support hospitals’ delivery of quality care.
Go deeper: View the entire prospectus here and access the Intent to Sponsor Form here.
Congress eyes healthcare offsets to finance Iran war spending
Congressional Republicans are considering including certain healthcare policies in a budget reconciliation package that may include as much as $200 billion in funding for the war in Iran and immigration enforcement. The healthcare policies would generate savings to help offset the cost of the budget package.
One policy under consideration is reinstating direct Affordable Care Act cost-sharing reduction payments, which may reduce federal spending but also could alter subsidy dynamics in ways that increase coverage instability.
A second set of possible offsets would revive several familiar Medicare policy debates: site-neutral payment reforms and tighter controls on Medicare Advantage upcoding.
A third possibility is codifying “most favored nation” drug pricing.
President Trump has been pressing Congress to enact such a proposal for months, and a budget reconciliation bill could become the chosen vehicle.
Finally, House Majority Leader Steve Scalise indicated that Republicans may also look to fraud, waste and abuse policies to achieve savings.
The big picture: While the GOP is framing these proposals as offsets rather than stand-alone health policy, purported savings to the government on paper may translate into very real consequences on the ground, including financial and operational problems for providers and access barriers for patients.
The GOP must also weigh the risk that some of these policies could be viewed as healthcare cuts in an election year.
Medicare faces lawsuit over AI‑driven prior authorization pilot
Why it matters: Medicare is facing a new lawsuit alleging that the Centers for Medicare and Medicaid Services (CMS) has not been transparent about how it is using artificial intelligence in the Wasteful and Inappropriate Service Reduction (WISeR) pilot.
The case centers on CMS’s failure to release information about the AI software, vendor arrangements and oversight safeguards, raising broader concerns about access to care and administrative burden for Arizona providers.
What’s happening: The Electronic Frontier Foundation is suing CMS for failing to disclose records explaining how WISeR operates, including details about the AI technology, vendor contracts and monitoring for accuracy or bias.
WISeR requires prior authorization for select outpatient services in traditional Medicare — a notable shift for a program that has historically relied far less on prior authorization than Medicare Advantage.
Why Arizona should pay attention: Arizona is one of the states participating in the WISeR model.
Early reports from other pilot states show lower initial approval rates, with many requests approved only after human review, raising concerns about delays in medically necessary care.
As Medicare continues testing AI‑supported utilization controls, the lawsuit underscores the importance of transparency and oversight as these tools begin affecting fee‑for‑service Medicare providers in Arizona.
CMS memo reiterates nutrition service obligations for hospitals
On Monday, March 30, 2026, the Centers for Medicare and Medicaid Services (CMS) released a memo reinforcing hospital nutrition service obligations for hospitals.
Why it matters: The memo reminds hospitals of Medicare conditions of participation that require hospitals to ensure menus and diets meet individual patient nutritional needs in accordance with recognized dietary practices.
The big picture: Hospitals need to review and revise their food and nutrition service policies, standard menus, therapeutic protocols and other practices to align with the recently released 2025-2030 Dietary Guidelines for Americans.
Shannon Garcia joins AzHHA as director, maternal health
AzHHA is pleased to announce that Shannon Garcia has joined the organization as the new director, maternal health.
She brings more than 30 years of leadership experience in maternal and perinatal care and is committed to improving maternal health outcomes.
In her new role, she will lead the implementation and management of our statewide maternal health initiatives in collaboration with our program participants and stakeholders.
Get to know Shannon: With extensive experience across OB, labor and delivery and newborn care, as well as active involvement with the AzHHA AIM Steering Committee, her wealth of experience will greatly enhance our efforts and elevate the impact of our maternal health initiatives.
Please join us in welcoming Shannon!
AzHHA releases DataGen reports
In relationship with DataGen, AzHHA distributes reports to hospitals based on information submitted to the Centers for Medicare and Medicaid Services. DataGen generates hospital-specific reports which are sent to AzHHA hospital members as part of their membership.
Why it matters: This data helps hospitals understand the financial impact of proposed changes and annual updates.
The reports can also assist in preparing budgets or benchmarking results with other similar organizations.
The below reports were recently sent to members:
4Q2025 Medicare Margin Analysis (sent Friday, March 20, 2026)
Medicare Quality Programs Overview Report (sent Tuesday, March 24, 2026)
4Q2025 Inpatient Quality Program Measure Trends Analysis (sent Wednesday, March 25, 2026)
4Q2025 Hospital-Acquired Condition (HAC) Reduction Program Analysis (sent Thursday, March 26, 2026)
Value-Based Purchasing Analysis FFY 2027 Program (sent Friday, March 27, 2026)
Medicare Spending per Beneficiary Report CY 2022-2024 (sent Tuesday, March 31, 2026)
UPCOMING EVENTS
Thursday, April 2, 2026 - Upcoming enhancements to AHCCCS Provider Enrollment Portal (APEP) webinar During this webinar, the Arizona Health Care Cost Containment System (AHCCCS) will provide an overview of the APEP improvements scheduled over the next 18 months. This session will offer an opportunity to learn about the direction of upcoming changes, understand how they support providers and stakeholders and hear directly from AHCCCS about ongoing efforts to strengthen provider enrollment operations. Register now.
Friday, April 10, 2026 – Arizona HFMA Spring Conference The Arizona Chapter of the Healthcare Financial Management Association (HFMA) will host its Spring Conference at Scottsdale Stadium, bringing together healthcare finance leaders from across the state for a day of learning, insights and connection. This year’s program will focus on how analytics, artificial intelligence and leadership strategies are shaping reimbursement and financial decision-making. Sessions will include an AHCCCS update, AzHHA legislative insights, emerging trends in healthcare AI and the impacts of H.R. 1. Learn more and register here.
Wednesday, April 15, 2026 and Thursday, April 16, 2026 - Listening Sessions on ALTCS EPD Program The Arizona Health Care Cost Containment System (AHCCCS) is inviting members, family members, advocates and providers to participate in upcoming listening sessions focused on the Arizona Long Term Care Services (ALTCS) Elderly and/or Physically Disabled (EPD) Program. These sessions are designed to provide an opportunity for participants to share feedback and suggestions that AHCCCS will consider as part of new ALTCS EPD health plan contracts, which are scheduled to begin Oct. 1, 2027. Register for the Wednesday, April 15, 2026 session or the Thursday, April 16, 2026 session.
Thursday, April 30, 2026 - AzAHQ 2026 Spring Virtual Conference: Quality’s Role in Organizational Culture Join the Association for Healthcare Quality of Arizona (AzAHQ) to explore the role of quality leadership in fostering a culture of safety and quality within organizations from the boardroom to frontline employees. This conference will explore the critical interrelationship between quality and financial outcomes, distinguish between traditional, siloed quality models and a true enterprise-wide culture of quality, understand quality’s role in healthcare violence prevention and staff safety, and action plan development. Register now.
Friday, May 1, 2026 - From Crisis to Care: Improving Outcomes in Arizona’s Behavioral Health System The Arizona Public Health Association’s 98th Annual Conference will focus on strengthening Arizona’s behavioral health system and improving outcomes for people with mental and behavioral health needs. This year’s conference will highlight innovative strategies, evidence-based practices and policy approaches that move the system beyond crisis response and toward sustainable, person-centered care. Learn more and register.
June 9-10, 2026 - 2026 AzCHER Healthcare Emergency Preparedness Conference This year’s theme is “Many voices, one mission: Advancing healthcare preparedness together.” The one-and-a-half-day conference features sessions shaped by member feedback and brings together experts across healthcare, public health and emergency management. Register now.
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 and registration information will be shared in the coming months. Questions may be directed to communications@azhha.org.
