The budget proposal being vetoed by Governor Hobbs.
A reminder regarding annual hospital financial reports.
How time is running out to submit an application for the AzHHA Quality Awards.
Cinco de veto
The Senate convened on Monday to vote on budget-related bills that arrived from the House late last week.
Each of the budget reconciliation bills was passed along party lines, with the opposition providing extensive testimony.
On Tuesday, the budget landed on Governor Hobbs’ desk and was quickly vetoed.
This is a dynamic we've seen play out in recent years. The glass-half-full moment this cycle is that Senate and House Republicans are collaborating on the budget from the outset — a meaningful step forward.
AzHHA members should have received a recap of the budget proposal in their inboxes on Tuesday afternoon. If you are with a member hospital and did not receive the recap, please reach out to our team.
What else is going on: Neither chamber is advancing much legislation at this point because the Governor's bill moratorium remains in effect.
It's an unfortunate illustration of how much power a single Rules Committee Chair can wield.
We continue to advocate for the bill to receive a fair floor hearing rather than allowing one person to determine its fate.
As of Tuesday afternoon, the Senate voted to adjourn until next Monday, and the House voted to adjourn until June 1, with the understanding that the Senate intends to do the same after its meeting next Monday.
All of this is subject to the caveat that leadership has the power to reconvene each chamber at any point during this break.
The bottom line: The pace may be slow, but the stakes remain high. If you haven't already, we encourage you to stay connected with your legislators — your voice matters as these conversations continue.
Annual hospital financial reports
Hospitals are required to submit several annual financial reports to the Arizona Department of Health Services (ADHS) following the close of their fiscal year.
Key deadlines include:
Annual audited financial statements (AFS), with attestation, due 120 days after the hospital’s fiscal year‑end
Uniform Accounting Reports (UARs), with attestation, due 150 days after the hospital’s fiscal year‑end
Medicare Cost Reports (MCRs) due 150 days after the hospital’s fiscal year‑end
Statement of cash flow (if not included in the AFS) due 150 days after the hospital’s fiscal year‑end
Hospital charge description master updates due prior to any subsequent rate changes
Why it matters: ADHS has statutory authority to assess fines for late submissions.
In addition, the Arizona Health Care Cost Containment System relies on these reports for multiple purposes, including the calculation and distribution of supplemental payments.
For hospitals with a fiscal year ending Dec. 31, all required 2025 UARs, MCRs, audited financial statements, statements of cash flow and attestations should be submitted by the end of May.
More information: Additional instructions and resources are available on the ADHS website.
Questions about reporting requirements or submission status should be directed to costreporting@azdhs.gov
⌛Time is running out! Apply now for the AzHHA Quality Awards
The deadline for submissions for theFourth Annual AzHHA Quality Awards is fast approaching! This is an opportunity for member hospitals and healthcare facilities to highlight a recent project, within the last 12 months, in:
Outstanding Patient/Community Impact
Workforce Engagement
A Top Overall Excellence Award will also be presented.
Why it matters: These awards celebrate and recognize Arizona’s leaders committed to advancing healthcare with exceptional quality performance, community engagement and a culture of continuous improvement.
Submissions are due at 5 p.m. on Friday, May 29, 2026.
Nebraska becomes first state to launch Medicaid work requirements
Nebraska became the first state to implement the Medicaid community engagement requirements required under H.R. 1 on Friday, May 1, 2026, eight months ahead of the Jan. 1 deadline.
The policy applies to the Medicaid expansion population and requires many adults to document at least 80 hours per month of work, education, volunteering or other qualifying activity to maintain coverage.
Nebraska officials have clarified that beneficiaries will not lose coverage in May or June; the first affected applications and renewals are expected in July.
Experts estimate that 20,000 to 40,000 Nebraskans could ultimately lose coverage.
Nebraska officials say they have conducted extensive outreach, including letters, texts and emails, and will use existing data to verify compliance where possible.
Advocates, however, have raised concerns about the pace of implementation, the lack of new staffing or IT funding, the complexity of beneficiary communications and whether Nebraska’s verification systems will reliably identify those who qualify for exemptions.
Additionally, Nebraska’s implementation precedes the release of the Centers for Medicare and Medicaid Services regulations expected in June that are anticipated to clarify key questions surrounding exemptions — in particular, the “medically frail” exemption — verification procedures, coordination with other benefit programs and criteria for implementation extensions.
Nebraska’s rollout will be closely watched by other states as an early test of how work requirements will function in practice and how implementation choices will impact coverage.
Research on prior work requirement programs has shown that many Medicaid enrollees subject to the rules are already working, but coverage losses can still occur when paperwork, notices, documentation or inadequate state IT systems make it difficult to verify compliance or exemptions.
As Michael Karpman of the Urban Institute warned, “The higher the administrative burden, the more likely people are found noncompliant and disenrolled.”
According to a Kaiser Family Foundation survey conducted between January and March, Iowa and Montana also plan to implement the community engagement requirements this year.
The survey also indicates that most states are planning less restrictive verification policies, such as checking compliance at renewal rather than more frequently, looking back only one month to verify enrollees’ qualifying activities and adopting at least one optional hardship exemption.
Most states reported that the implementation timeline is too short to contract with new eligibility-system vendors, and only 14 of the 43 states responding to the survey reported plans to increase eligibility staff capacity.
AzHHA HR Roundtable: Join us Thursday, May 28, 2026
The Arizona Hospital and Healthcare Association invites HR leaders to our next in-person HR roundtable.
Why it matters: Connect with peers, share insights and tackle key workforce topics together.
Join us from 9:30 a.m. to 2:30 p.m. on Thursday, May 28, 2026, at the AzHHA offices in central Phoenix.
What’s happening: The agenda is set and presentation highlights include:
Law essentials for HR.
Strengthening retention by elevating the nurse experience.
Choosing the right search partner for recruitment.
Policy update: Current legislation affecting the healthcare workforce.
What’s next: Advance registration is requested for space accommodations and meal preparation.
Sponsored by Adaptive Workforce Solutions, there is no registration fee, and lunch and parking will be complimentary.
If you are unable to attend, feel free to send another representative from your HR team.
This year’s AzCHER Healthcare Emergency Preparedness Conference will be held June 9-10 at the Desert Willow Conference Center in Phoenix, Ariz.
The theme is “Many voices, one mission: Advancing healthcare preparedness together.”
Why it matters: This year’s one-and-a-half-day conference features sessions shaped by member feedback and brings together experts across healthcare, public health and emergency management.
Topics include workplace violence, behavioral threat assessment, regulatory updates, lessons learned and coordinated response.
Day two offers in-depth workplace violence and active-shooter preparedness training, including targeted instruction and hands-on exercise development to strengthen prevention, response and recovery in healthcare settings.
Monday, May 11, 2026 - Medical Leadership in Disaster Preparedness and Response This half-day virtual conference will bring together individuals who have a medical role during disasters to discuss the spectrum of medical leadership responsibilities and some of the specific challenges of this role. Topics will include developing/implementing best practices during a disaster, navigating downtime, using data for action, learning about the new disaster medicine subspecialty and discovering healthcare surge tools. Register now.
Friday, May 15, 2026 - West CMS QIN-QIO Region 7 Emergency Preparedness Webinar In 2023 and 2025, the Maui, Palisades and Eaton fires forced urgent evacuations that tested emergency preparedness plans across the healthcare system and challenged hospitals, nursing homes, public health agencies and emergency responders. The Health Services Advisory Group is hosting a webinar to bring together firsthand insights on what worked, where challenges emerged and how lessons learned can strengthen emergency preparedness across all provider types. Register today.
Tuesday, May 19, 2026 - 2026 Healthier Together Summit Contexture is presenting a summit that will include engaging discussions and dynamic sessions on the evolving Arizona health ecosystem, statewide priorities and innovative approaches to improving outcomes. This year’s gathering brings together leaders, innovators and community partners from across the state to inform, inspire and strengthen the partnerships that move whole person health forward. 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.
