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This week, read about: A scholarship opportunity for the 2026 Arizona Hospital Leadership Conference

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Connection Newsletter

By AzHHA Communications July 9, 2026

Smart Brevity® count: 4.5 mins...1220 words

This week, read about:

  • A scholarship opportunity for the 2026 Arizona Hospital Leadership Conference.

  • CMS proposing a 2.4% OPPS payment update for 2027.

  • Taking advantage of the early bird rate for the 2026 Arizona Hospital Leadership Conference.

Creighton University Emerging Leader in Healthcare Scholarship

2026 Arizona Hospital Leadership Conference logo

Through the Creighton University Emerging Leader in Healthcare Scholarship opportunity, two scholarships will be awarded to selected applicants to cover registration for the 2026 Arizona Hospital Leadership Conference, Oct. 21-23, 2026, at the El Conquistador Tucson, a Hilton Resort.

Why it matters: The scholarship supports emerging and dedicated professionals working in underserved healthcare settings to attend this premier statewide event.

  • The scholarship will assist with registration, travel and accommodations during the conference up to $2,500.

The big picture: The goal is to promote leadership development, professional growth and the exchange of innovative practices among healthcare professionals across the state of Arizona.

What’s next: Review the application for complete details on what the scholarship includes, who is eligible and how to apply.

  • Applications are due by Sunday, Aug. 30, 2026.

Apply now

CMS proposes 2.4% OPPS payment update for 2027

Illustration of a neon sign in the shape of a yellow plus with an information "i" in the center.

On Thursday, July 2, 2026, the Centers for Medicare and Medicaid Services (CMS) released its calendar year (CY) 2027 proposed rule for the outpatient prospective payment system (OPPS) and ambulatory surgical center payment system. CMS estimates the proposed changes would increase OPPS payment rates by 2% for hospitals that meet quality reporting requirements.

Key proposals include:

  • Increase OPPS payment rates by 2.4%, reflecting a 3.2% market basket update reduced by a 0.8 percentage point productivity adjustment.

  • Reduce reimbursement for 340B-acquired drugs from average sales price (ASP) + 6% to ASP - 33.4%, while applying a budget-neutral increase to non-drug OPPS services. CMS estimates the change would reduce 340B drug payments by $4.85 billion, while increasing payment rates for non-drug outpatient services in a budget-neutral manner.

  • Accelerate recovery of funds associated with the prior 340B payment remedy. CMS proposes increasing the annual OPPS conversion factor reduction from 0.5% to 3%, shortening the recoupment period from an estimated 15 years to approximately four years.

  • Expand site-neutral payments to certain imaging services provided in excepted off-campus hospital outpatient departments.

  • Continue phasing out the inpatient-only (IPO) list, with hundreds of additional procedures proposed for removal in CY 2027.

  • Request stakeholder input on hospital price transparency, including greater standardization and comparability of posted pricing data.

What’s next: AzHHA members should be on the lookout for a more detailed analysis of the proposed rule in the coming days, including facility-specific estimated impacts.

  • Hospitals may report feedback on the proposed rules to communications@azhha.org.

  • CMS is accepting comments on the rules until Monday, Aug. 31, 2026.

Register today and save: 2026 Arizona Hospital Leadership Conference

El Conquistador Tucson, a Hilton Resort at night

The 2026 Arizona Hospital Leadership Conference will be held at the El Conquistador Tucson, a Hilton Resort on Oct. 21-23.

Registration is now open for the event!

  • Save money by taking advantage of the early bird discount which is available until Wednesday, Sept. 2, 2026.

  • This year’s conference theme is “Arizona hospitals: Commitment to care.”

The big picture: This educational event is dedicated to supporting a vibrant healthcare delivery system, including a robust network of acute care, critical access, behavioral health and post-acute care hospitals.

  • This will be an inspirational gathering of more than 200 hospital and healthcare executives seeking opportunities for continuing education, meaningful discussion and relationship building.

Register now

Arizona sees one of nation's sharpest ACA coverage declines

Illustration of gloved hand holding a megaphone.

Arizona has experienced one of the steepest declines in Affordable Care Act (ACA) marketplace coverage following the expiration of enhanced federal premium subsidies.

Why it matters: Coverage losses often translate into higher uncompensated care and bad debt for providers.

  • Arizona hospitals have previously experienced significant growth in uncompensated care when coverage levels declined prior to Medicaid expansion.

By the numbers:

  • Recent federal data show active enrollment dropped from 428,026 to 306,798 from March 2025 to March 2026, meaning Arizona has lost more than 121,000 enrollees or a decrease of 28% over the past year.

  • Other states seeing a deep decrease include Ohio, Oklahoma, South Carolina and Minnesota.

The big picture: Enhanced premium tax credits that helped lower ACA premiums expired at the end of 2025.

  • As premiums and out-of-pocket costs increased, many consumers either did not complete enrollment or dropped coverage altogether.

Go deeper: The decline in ACA enrollment is occurring as Arizona prepares for several other federal health policy changes under H.R. 1.

  • In addition to the expiration of enhanced marketplace subsidies, the law includes new Medicaid work requirements beginning in 2027 and significant changes to Medicaid financing that are expected to reduce federal funding available for provider assessments and state-directed payments over time.

  • While the full impact remains uncertain, hospitals are closely monitoring how coverage losses, eligibility changes and Medicaid funding reductions could collectively affect the number of uninsured Arizonans and increase financial pressure on providers.

DataGen to host two member-only webinars

A computer displaying a healthcare symbol.

DataGen will host a two-part webinar for AzHHA members.

  • AzHHA members have received DataGen Medicare fee-for-service analytics reports for many years as part of their membership.

Why it matters: The webinars are intended to provide an overview of the various reports members receive and also share state-specific impacts over the last few years of the programs.

Webinar 1: Overview of Medicare’s Value-Based Purchasing Program & Analysis for AzHHA

  • 11 a.m. on Wednesday, July 29, 2026

  • Register here.

Webinar 2: Overview of Medicare’s Readmission Reduction and Hospital Acquired Reduction Programs & Analyses for AzHHA

  • 11 a.m. on Thursday, Aug. 6, 2026

  • Register here.

PAC graphic

UPCOMING EVENTS

Friday, July 17, 2026 - 2026 Summer State of the State
Registration is now open for The Hertel Report’s Summer State of the State, hosted this year at Summit Regional Medical Center in Show Low, with virtual attendance also available. The bi-annual conference will feature updates on Arizona’s healthcare market and insights on federal and state policy impacts, including Medicare Advantage, Medicaid, the Marketplace and value-based care trends. Discounted pricing is available for AzHHA members by using “azhha2026.” Register now.

Tuesday, Sept. 1, 2026 - Sidewalk to Bedside: Reimagining Care Through Street Medicine-Hospital Partnerships Symposium
Join the University of Southern California for a free, in-person one-day symposium. This event brings together street medicine experts, hospital leaders, community organizations and health plans to explore how street medicine programs and hospitals can better partner to improve care before and after hospital discharge. Learn more and register.

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. Register by Wednesday, Sept. 2, 2026, to receive the early bird discount.

IN THE NEWS

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