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Connection Newsletter
By AzHHA Communications ● April 3, 2025
Smart Brevity® count: 7.5 mins...2048 words
This week, read about:
- Life without committees and what’s next at the Legislature.
- CMS approving HEALTHII payments.
- AzHHA submitting a comment letter on hospital assessment and HEALTHII payments.
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Life without committees: what's next at the Legislature
Last week marked a significant milestone at the Capitol: the final week for most committees to hear bills, except Appropriations and Rules. As anticipated, both chambers filled their Appropriations agendas, conducting marathon hearings to keep key legislation alive.
Signed, sealed, delivered: new laws backed by AzHHA.
On Monday, the Governor signed a dozen bills into law, including two measures supported by AzHHA:
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HB2173 – mental health inquiry; prohibition
- This critical bill protects healthcare professionals by prohibiting licensing boards from asking about an applicant’s mental health history, including whether they’ve sought treatment or received a diagnosis. It helps reduce stigma and aligns with national best practices.
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HB2025 – scope of practice; medical assistants
- This legislation expands the scope of practice for medical assistants, permitting them to insert and remove urinary catheters with appropriate training and under the general supervision of a licensed healthcare provider. This represents a step toward greater flexibility within the care team and enhanced patient access.
Where are we now? With committee deadlines behind us, we’ve seen light agendas in both chambers. But several of our priority bills are still moving, and close to the finish line:
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HB2175 – prior authorization; claims
- This bill addresses growing concerns around the use of artificial intelligence in prior authorization and claim denials. It reflects a carefully negotiated agreement between healthcare providers and insurers. We expect the Senate to adopt the latest amendment during an upcoming Committee of the Whole (COW) session.
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SB1291 – health insurers; provider credentialing; claims
- A top priority for AzHHA, this bill reduces the provider credentialing timeline from 100 to 60 days for commercial health plans and permits retroactive payment once the application is complete. Providers opting in will submit claims once they are loaded into the system. SB1291 is the result of months of stakeholder collaboration and consensus-building.
📣 Call to action: Help us get these bills across the finish line.
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We need your voice. Here’s how you can help:
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Support HB2175: Reach out to your senator to express how this bill will enhance access to care and alleviate administrative burdens for both patients and providers.
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Support SB1291: Contact your house representatives and explain how this will enhance credentialing and strengthen your hospital’s capacity to serve the community.
👉 Not sure who represents you? Use this tool to find out.
Need assistance in crafting your message? Reach out to Damien Johnson, director of government relations—we’re here to help.
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CMS approves HEALTHII payments
On Wednesday, April 2, 2025, the Centers for Medicare and Medicaid Services (CMS) approved the Federal Fiscal Year (FFY) 2025 Hospital Enhanced Access Leading To Health Improvements Initiative (HEALTHII) payments.
Why it matters: Due to additional questions from CMS and the Trump Administration delaying approval of state directed payments, Arizona has been awaiting approval of the FFY 2025 HEALTHII payments which will provide almost $2.3 billion in annual payments to hospitals.
- Hospitals were supposed to receive approximately $573 million in net HEALTHII payments at the end of December 2024 and another $573 million at the end of March 2025.
- Since Medicaid typically pays significantly below the cost of care, HEALTHII payments are critical to the financial viability of Arizona’s hospitals and the delivery system.
Next steps: The first and second quarter Health Care Investment Fund (HCIF) payments are due to AHCCCS by Wednesday, April 9, 2025.
- Invoices can be found on the AHCCCS website.
- AHCCCS has not yet released the timetable for when HEALTHII payment will be paid.
Please direct any questions to Amy Upston, director of financial policy and reimbursement.
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AzHHA submits comment letter on hospital assessment and HEALTHII payments
What’s new: Last week, AzHHA submitted comments on the Arizona Health Care Cost Containment System’s (AHCCCS) proposed model for the Federal Fiscal Year (FFY) 2026 (Oct. 1, 2025- Sept. 30, 2026) for hospital assessment and Hospital Enhanced Access Leading To Health Improvements Initiative (HEALTHII) payments.
Why it matters: AHCCCS annually updates the model for the Hospital Assessment Fund (HAF) which is used to pay for certain expansions of Medicaid services to certain populations.
- It also updates the Health Care Investment Fund (HCIF) assessment which is primarily used to draw down federal funds and pay hospitals a quarterly state directed payment called the HEALTHII.
AzHHA provided suggested improvements to AHCCCS’ current model including:
- Recommending that AHCCCS update the enrollment estimates used to calculate the HAF assessment.
- Re-evaluating whether such a large HAF fund balance is necessary.
- Suggesting that if AHCCCS begin tying health information exchange participation to HEALTHII quality metrics, that it do so its most basic form.
- Asking that AHCCCS work with any hospitals that are only able to make one quarter's worth of payments before receiving HEALTHII payments due to the delay in federal approval.
- Convening a small workgroup starting in August 2025 to discuss the transition of the FFY 2027 HEALTHII payments from a lump sum payment structure to integration within the managed care organization capitation rates.
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On Tuesday, April 1, 2025, thousands of layoff notices were distributed to U.S. Department of Health and Human Services (HHS) employees.
- Approximately one-quarter of the agency’s employees are expected to be affected by these cuts, which the administration has termed a “reduction in force.”
- Secretary Kennedy’s stated goal in the 25% workforce reduction is to save $1.8 billion by “eliminat[ing] an entire alphabet soup of departments, while preserving their core functions.”
Why it matters: The Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC) and the National Institutes of Health (NIH) are facing some of the largest employment cuts.
- Additionally, several top officials at the NIH and the CDC have been put on administrative leave or offered reassignments.
- Many of the FDA’s top officials have been removed, including Peter Stein, head of the agency’s Office of New Drugs and Peter Marks, the agency’s top vaccine official.
Congressional Democrats are calling the cuts reckless and maintain that the reduction in workforce will have a significant impact on the agencies’ operations and effectiveness. Some also question the executive branch’s authority to make these changes without Congressional approval.
Meanwhile, over 1,900 scientists who are elected members of the National Academies of Sciences, Engineering and Medicine, have signed a letter they call an “SOS to sound a clear warning: the nation’s scientific enterprise is being decimated.”
- The scientists reference the new administration’s substantial funding cuts, termination of grants and blocking research on topics it finds objectionable.
- The scientists voice concerns that the United States may consequently lose its role as the world’s foremost innovator of disease treatments and new technologies.
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2025 Arizona Hospital Leadership Conference Sponsorship Prospectus now available
Join this year’s Sponsorship Program for the 2025 Arizona Hospital Leadership Conference, Oct. 29-31 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 2025 Arizona Hospital Leadership Conference, you will have opportunities to:
- Gain corporate exposure and brand visibility with healthcare decision-makers.
- Cultivate relationships with Arizona’s hospital executives.
- Attend conference sessions, including keynote and breakout sessions on Thursday and Friday.
- Gain exclusive, high-impact networking time with hospital executives in an intimate setting to build meaningful connections.
- 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.
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Apply now: 2025 AzHHA Quality Awards
Applications for the 2025 AzHHA Quality Awards are now open!
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.
- The outstanding achievements will be honored at the AzHHA Quality Awards Luncheon on Wednesday, Oct. 29, 2025, during the 2025 Arizona Hospital Leadership Conference.
The big picture: Applicants from member hospitals and healthcare facilities must be able to highlight a recent project, within the last 12 months, in:
- Clinical Excellence
- Outstanding Patient/Community Impact
A Top Overall Excellence Award will also be presented.
Ready to apply? Read the application instructions and complete the Applicant Information form to get started.
The deadline for submissions is 5 p.m. on Friday, May 30, 2025.
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AzHHA’s president and CEO serves as guest editor for In Business Magazine
Ann-Marie Alameddin, president and CEO of AzHHA, contributed to the April 2025 edition of In Business Magazine by serving as the guest editor.
Why it matters: In her letter, Ann-Marie addressed the important topic of how potential Medicaid cuts would impact Arizona’s healthcare system.
The big picture: The April 2025 issue also shares insights from eleven top leaders in the healthcare industry about how their companies’ innovations are impacting Arizona’s economic picture.
- Additionally, two other of today’s hottest topics are explored in this edition: analysis of diversity, equity and inclusion practice, and the “where to work” debate.
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April 15-16 - 2025 Arizona Immunization Conference
This one-of-a-kind event provides education and resources so you can better understand the challenges around vaccine confidence and leave the conference encouraged by the success stories from around the state. Join over 500 attendees at the 2025 conference. Register here.
Wednesday, April 16 - ClearSky Rehabilitation Hospital of Avondale Open House
The Open House and Happy Hour event will be held from 4-6 p.m. Celebrate the Easter season with festive drinks, hors d’oeuvres and guided tours of the hospital. RSVPs are appreciated but not necessary. To RSVP, call 602-326-6222 or email [email protected] by Monday, April 14, 2025.
Tuesday, April 29 - Hospital Capacity Management Consortium
This free virtual event is the opportunity to connect with other healthcare capacity management professionals to innovate, find out what works and drive the field to create safer, more efficient hospitals. Register today.
May 4-6 - American Hospital Association Annual Membership Meeting
This event will feature insightful conversations with policymakers, legislators and thought leaders on our most pressing issues. You’ll connect with decision makers who create, shape and implement healthcare policy and influence the political landscape. Register now.
Wednesday, May 13 - AHA Workshop: Community health and the environment
The workshop will be held in Scottsdale, Ariz. and will bring together frontline hospital leaders in community health strategy, population health and emergency planning to better understand opportunities and challenges related to addressing community health and the environment. Interested in attending? Contact Sean Thorton or Andrew Jager.
Friday, May 16 - Emerging Technology and Tools - What are the Risks?
Join the Association for Healthcare Quality of Arizona for this virtual event to explore the latest advancements in digital health, human factors, compliance and emerging technologies. This event features speakers, interactive discussions and practical insights to help you navigate the evolving landscape of healthcare innovation. Learn more and register.
Wednesday, May 28 - Introduction to POLST
Join physician orders for life-sustaining treatment (POLST) paradigm for their one-hour virtual workshops equipping healthcare professionals with knowledge and resources to begin using POLST in Arizona. Register here.
Sept. 7-12 - National Tribal Health Conference
This is a week-long event that serves American Indian and Alaska Native Tribes in the space of health - behavioral and public health. The conference will showcase the interconnectedness of policy, advocacy and Indian health best practices. Register by Saturday, April 12, 2025, to receive the early bird rate.
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