• The AzHHA team sharing their gratitude and thanks.

• CMS approving hospital assessments but HEALTHII payments approval is still in limbo.

• The Healthcare Leadership Academy application deadline this Friday.

We’re grateful for your support and trust as we work together to explore ideas and take collaborative action at the state capitol, in hospitals and at home to attain the best healthcare outcomes for our community.

• The Arizona Health Care Cost Containment System (AHCCCS) is in the process of loading the Hospital Assessment Fund assessment into the system. Once complete, hospitals will receive an invoice and have 30 days to make a payment.

• AHCCCS will not submit an invoice for the Health Care Investment Fund until after the Hospital Enhanced Leading To Health Improvements Initiative (HEALTHII) payments are approved.

• In prior years, CMS approval typically arrived between mid-October and late November.

  • Given the late approval, AzHHA does not anticipate that hospitals will receive HEALTHII payments in the current calendar year.

• AHCCCS has not yet engaged Arizona’s congressional delegation but will alert hospitals if advocacy becomes necessary.

• Based on recent CMS guidance, which prohibits state-directed payment revenue increases enacted after July 4, 2025, AzHHA anticipates CMS will likely limit Federal Fiscal Year 2026 HEALTHII payments to $2.3 billion instead of the $2.9 billion requested by AHCCCS.

• The AzHHA Foundation partners with Creighton University’s College of Professional and Continuing Education to provide healthcare leadership and management education to rising leaders within AzHHA member hospitals.

• Nine months of learning begins in March 2026 and culminates in November 2026 which includes three in-person and six virtual sessions.

• The HLA is geared toward mid-level managers and early-stage executives to prepare them for C-suite positions.

• This is the third cohort of the HLA. Learn more about the program here.

• Reportedly, the plan would extend the enhanced subsidies for two years, cap eligibility at 700% of the Federal Poverty Level and require all enrollees to make a minimum premium contribution.

• The plan would also create a new incentive for individuals to choose lower-cost coverage by depositing some of the savings from downgrading plans into taxpayer-funded Health Savings Accounts.

• Still unclear is whether the proposal will include new restrictions on the use of federal financial assistance for coverage of elective abortions.

• It remains to be seen whether Trump will still release the plan in light of this resistance.

• In a Monday statement, House Democratic health leaders, including Energy and Commerce Committee Ranking Member Frank Pallone Jr., denounced the emerging plan as a “scheme to gut the expanded ACA premium tax credits” and warned that it would spike costs for families, push people into lesser coverage and expand tax shelters for the wealthy.

• The statement insisted that “anything short of a clean extension is unworkable and won’t avoid the price hikes people are now facing.”

• Debbie’s decades of service within the Arizona Senate and among Arizona’s healthcare community have left an indelible mark on our state.

“Governor Hobbs has made an exceptional choice in nominating Debbie Johnston to lead the Arizona Department of Health Services. Debbie’s unmatched regulatory expertise, deep familiarity with public health programs and collaborative approach will ensure that Arizona’s healthcare system continues to advance in quality, safety and accessibility. We thank Governor Hobbs for her commitment to strong leadership in public health with Debbie’s nomination.”

-Ann-Marie Alameddin, president and CEO, AzHHA