The big picture: This will be an inspirational gathering of more than 200 hospital and healthcare executives seeking opportunities for continuing education, meaningful discussion and relationship building.
This year’s conference theme is “Arizona hospitals: Commitment to care,” which underscores the essential role hospital leaders play in advancing quality, access and transformative care while strategically guiding complex organizations in service to patients, communities and Arizona’s healthcare future.
CMS Medicaid community engagement rule: Coalition letter submitted
Last Friday, July 31, 2026, AzHHA and its partners in Arizonans for Better Healthcare submitted a coalition comment letter on the Centers for Medicare and Medicaid Services' (CMS) Interim Final Rule on Medicaid community engagement requirements.
The concern: Without significant changes, the rule could disrupt coverage, increase administrative burden and shift eligibility-related responsibilities onto healthcare providers.
What's next: CMS will review stakeholder comments and is expected to issue additional implementation guidance as states prepare for the Jan. 1, 2027 implementation deadline.
The bottom line: When Arizona healthcare speaks with one voice, we strengthen advocacy for patients, providers and communities statewide.
Earlier lifeline for rural hospitals faces test under ‘Big Beautiful’ law
Why it matters: Rural hospitals are struggling to survive, and a federal program designed to support them is now being tested by new Medicaid funding reductions.
The big picture: Sturgis Hospital in Michigan was one of the first facilities to convert to the Rural Emergency Hospital model, a program created by Congress in 2023 to help struggling rural hospitals stay open.
The model provides extra Medicare funding but requires hospitals to close inpatient services and focus on emergency and outpatient care.
Despite receiving this support, Sturgis Hospital closed in 2026 after declining patient numbers and financial pressures.
The challenge: Experts worry that this situation with Sturgis Hospital may signal broader problems for rural healthcare.
Although some hospitals have improved financially after converting to the model, many still face staffing shortages, rising costs and reduced patient volumes.
The bottom line: The Rural Emergency Hospital model helps some communities, but many leaders believe additional reforms and funding outside of this program will be needed to prevent future rural hospital closures.
Medicare’s proposed cut to 340B drug payments would hit safety-net hospitals while benefiting for-profit hospitals
Why it matters: A proposed Medicare payment change could significantly impact hospitals nationwide, reducing revenues for safety-net hospitals while benefiting many for-profit facilities.
The proposal: The Centers for Medicare & Medicaid Services (CMS) has proposed cutting Medicare reimbursement for drugs purchased through the 340B Drug Pricing Program.
Payments would drop from the current rate of average sales price plus 6% to average sales price minus 33.4%, a reduction of about 37%.
CMS says the change would better reflect hospitals’ actual drug acquisition costs.
Who is affected: Safety-net hospitals, which often serve low-income and underserved populations, rely heavily on revenue generated through the 340B program.
KFF estimates these hospitals would see a 5.8% decline in outpatient revenue, while for-profit hospitals could experience a 7.4% increase, because they would benefit from higher payments for other outpatient services.
The bottom line: Critics argue the proposal could worsen financial pressures on safety-net hospitals while strengthening the financial position of for-profit providers.
OB emergency simulation training returns to rural Arizona facilities
AzHHA is excited to announce the return of OB emergency simulation training for rural Arizona hospitals and emergency departments.
These hands-on training opportunities are designed to strengthen clinical readiness and improve outcomes for mothers and babies by helping healthcare teams prepare for obstetric emergencies that may occur infrequently but require rapid, coordinated response.
Why it matters: Rural and non-obstetric facilities may still care for pregnant and postpartum patients experiencing life-threatening complications.
OB emergency simulations help teams build confidence, improve communication and practice evidence-based care in a safe learning environment before a real emergency occurs.
The training includes:
Simulation scenarios focused on obstetric hemorrhage, hypertensive emergencies and maternal code events.
Multidisciplinary participation from nurses, physicians, EMS, pharmacists and other team members involved in emergency response.
On-site training delivered directly to facilities, making education accessible for rural, critical access, tribal and underserved communities.
The big picture: Obstetric emergencies can have devastating consequences for both mothers and babies.
By expanding access to simulation-based training, AzHHA is helping ensure that healthcare teams across Arizona are prepared to recognize, stabilize and respond to maternal emergencies while supporting safer, more equitable care statewide.
What’s next: Facilities interested in hosting an OB emergency simulation can contact the AzHHA Maternal Health team at maternalhealth.azhha.org to learn more about scheduling a session and bringing this valuable training opportunity to their organization.
After Obamacare cuts, hospitals are treating more uninsured patients
Why it matters: Hospitals across the U.S. are seeing a sharp rise in uninsured patients as Affordable Care Act (ACA) enrollment declines following the end of enhanced federal subsidies.
What’s happening: Major hospital systems report uninsured patient volumes have increased by as much as 20%, while unpaid medical bills and charity care are climbing.
Some patients are also delaying elective procedures and preventive care because of rising healthcare costs.
By the numbers:
ACA enrollment has dropped by roughly three million people, or 13%, since the start of 2026.
SSM Health reported a 21% increase in uninsured patients and a 37% rise in bad debt from unpaid bills.
Some hospital groups warn the trend could reduce operating profits by hundreds of millions, and in some cases, more than $1 billion.
The big picture: As insurance premiums and out-of-pocket costs increase, more Americans are losing coverage or struggling to afford care.
The bottom line: Hospitals, patients and insurers are all feeling the impact, raising concerns about affordability, access to care and long-term healthcare costs.
In memory of Dr. Lanny Kope
Dr. Lanny Kope passed peacefully at the age of 92 on Friday, July 3, 2026, in Sierra Vista, Ariz.
He was active in healthcare governance for over 30 years.
His legacy: Dr. Kope served on the boards of two rural hospitals and one urban hospital in Arizona, and he provided service and leadership to the communities of Phoenix, Payson and Sierra Vista.
Dr. Kope was actively involved with AzHHA for many years, including serving on the council for government relations.
He also won the American Hospital Association Grassroots Champion Award in 2008 while he was serving as the Board Chair at Sierra Vista Regional Health Center.
AzHHA remembers Dr. Kope for his contributions to communities across our state.
UPCOMING EVENTS
Friday, Sept. 11, 2026 and Saturday, Sept. 12, 2026 – Alzheimer’s and Dementia in Practice: Bridging the Gap Between Diagnosis and Treatment Yavapai County Community Health Services is hosting two free, three-hour professional development classes in Cottonwood and Prescott to learn from medical experts in the field of Alzheimer’s and dementia on how to bridge the gap between early diagnosis and effective treatment by improving screening practices and connecting patients and caregivers with valuable resources. Register here for the Cottonwood session on Sept. 11 and register here for the Prescott session on Sept. 12.
Oct. 21-23 – 2026 Arizona Hospital Leadership Conference The 2026 Arizona Hospital Leadership Conference will be held at the El Conquistador Tucson, a Hilton Resort on Oct. 21-23. 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 Wednesday, Sept. 2, 2026, to receive the early bird discount.
