The healthcare implications with the federal government shutdown.
The Arizona Transition to Practice Program starting its sixth cohort.
The AzHHA HR Roundtable next week.
Key healthcare programs lapse with federal government shutdown
Congress’ failure to reach agreement by Tuesday night’s deadline has triggered a government shutdown with significant implications for healthcare.
While Medicare payments continue as mandatory spending, Medicaid funding is only secure through the first quarter of FY2026, creating uncertainty if the shutdown persists.
Funding for the Rural Health Transformation Program is also mandatory, though staff furloughs could delay program administration.
Hospitals now face the lapse of several critical “health extenders”:
Hospital-at-home: Centers for Medicare and Medicaid Services (CMS) guidance requires all patients to be discharged or returned to hospitals immediately.
Medicaid DSH cuts: An $8 billion cut is now in effect, though states may not carry out reductions immediately.
Telehealth waivers: CMS has confirmed that many pre-pandemic restrictions on Medicare telehealth services will return absent Congressional action, restricting services outside rural areas and in patients’ homes.
Claims processing: According to CMS, Medicare administrative contractors (MACs) will place a temporary hold on claims tied to expiring legislative provisions. CMS believes this will have minimal financial impact due to the 14-day payment floor, but hospitals may experience short-term cash-flow delays.
Rural supports: Payments under the low-volume adjustment, Medicare-dependent hospital and ambulance add-on programs are at risk without Congressional renewal.
Workforce programs: Community health centers, National Health Service Corps and teaching health centers GME face funding disruptions.
The shutdown stemmed from Democratic leaders’ insistence on extending the enhanced Affordable Care Act subsidies, which Republicans opposed in favor of a “clean" seven-week stopgap spending bill.
President Trump has signaled some willingness to consider an extension of the subsidies but only after the government reopens.
By the numbers: Get to know our September 2025 cohort:
👩⚕13 new graduate nurses
👩🏫 34 preceptors
🏥 8 facilities participating in cohort six
The big picture: The Arizona Transition to Practice Program is made possible by funding and support provided by Arizona Health Care Cost Containment System (AHCCCS) and the Governor’s Office. We are grateful for their backing so that we can tackle this important work.
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:
FFY 2026 Medicare Long-Term Care Hospital PPS Final Rule Impact Analysis (sent Wednesday, Sept. 3, 2025)
2Q2025 Value Based Purchasing Program Impact Analysis (sent Wednesday, Sept. 24, 2025)
2Q2025 Quality Program Measure Trends (sent Thursday, Sept. 25, 2025)
ADHS partners with Americares to promote heat preparedness resources for healthcare providers
The Arizona Department of Health Services (ADHS) announced a collaboration with Americares in disseminating their “Climate Resilience for Frontline Clinics Toolkit” and resources to healthcare professionals throughout the state.
Why it matters: The toolkit includes more than 40 free downloadable resources in English and Spanish, including patient handouts and emergency planning tools and checklists.
Americares also offers an online planning tool to help clinic staff create heat-health action plans and wildfire smoke action plans for their facilities.
The big picture: This is part of ADHS’ ongoing efforts to promote heat awareness across Arizona and enhance the state’s heat preparedness amongst healthcare providers throughout the state.
Attorney General Mayes announces student contest on fentanyl awareness
This week, Arizona Attorney General Kris Mayes announced a competition to promote awareness of fentanyl.
Why it matters: More than five people die every day from opioid overdoses in Arizona.
Fentanyl’s potency and low cost means it is often laced with other illicit or counterfeit drugs.
The big picture: The goal is to ensure that every young person in Arizona knows how to protect their friends and themselves from fentanyl.
Go deeper: The contest invites college and university students to submit a public service announcement (PSA) and high school students to submit an Instagram reel or TikTok video focused on the dangers of the drug.
Spotlight: Karen Ofafa named Marla Weston Leadership Award winner
The Arizona Nurses Association (AzNA) recognized Karen Ofafa, EdD, MPH, BSN, R.N., vice president of care improvement at AzHHA, with the Marla Weston Leadership award.
Why it matters: The award is presented to an AzNA member who has made significant contributions to nursing practice and policy through exceptional leadership—demonstrating the ability to listen to diverse perspectives, foster collaboration among multiple stakeholders and develop solutions that advance the nursing profession or promote the health of Arizonans.
Karen’s exceptional leadership and dedication to advancing nursing practice and policy make her a true inspiration to our healthcare community.
Please join us in congratulating Karen on this tremendous achievement!
UPCOMING EVENTS
Wednesday, Oct. 8 - Community Grand Rounds: Human Services Partnerships to Advance Health in Arizona This session convenes human services leaders, including representatives from Central Arizona Shelter Services and Maricopa County, to share insights into homelessness and human services partnerships in Arizona. The session will explore local priorities, successes and challenges in operations and service delivery to foster cross-sector understanding and collaboration to improve health outcomes. Register here.
Oct. 28-29 - Medical Leadership in Disaster Preparedness and Response Conference This free, virtual event will help AzCHER members strengthen emergency readiness, enhance leadership skills and apply best practices to improve healthcare response across Arizona. Learn more and register.
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. Register now.
