STATEMENT FROM THE HEALTH SYSTEM ALLIANCE OF ARIZONA REGARDING THE PASSAGE OF THE HEALTH CARE INVESTMENT ACT FROM SENATE APPROPRIATIONS 

Phoenix, AZ- The Health System Alliance of Arizona issued the following statement regarding the passage of Senate Bill 1247, the Health Care Investment Act, from the Senate Appropriations Committee:

“As Arizona’s population continues to grow, it is critical that we invest in our health care delivery system,” Health System Alliance of Arizona Executive Director Jennifer Carusetta said.  By using an innovative approach to address the $1 billion Medicaid shortfall, Arizona’s hospitals and health care providers can continue to provide quality care and infuse $2.3 billion into Arizona’s economy. We thank Senator Gowan for his leadership on the Health Care Investment Act, S.B. 1247, and the members of the Senate Appropriations Committee who supported the legislation.”

The Health Care Investment Act, sponsored by Senator David Gowan and Representative Regina Cobb, establishes an outpatient assessment on hospitals that would generate $354 million. These dollars would be used to draw down $1.1 billion in federal matching dollars to address the Medicaid reimbursement rate shortfall for hospitals and health care providers. Due to this reimbursement gap, unpaid Medicaid costs currently total more than $1 billion each year.

A recent economic impact report notes the following economic activity comparisons of the proposed $1.1B in federal matching funds:

  • 15,538 jobs with $955.4 million in wages and $45.1million in state taxes
  • 8 brand new hospitals
  • 5,800-employee high wage headquarters relocating in Arizona
  • Between 10 and 20 major business expansions or locations in high wage industries.
  • 3 Super Bowls each year

About the Health System Alliance of Arizona

The Health System Alliance of Arizona is an advocacy organization that represents the interests of large, integrated health systems across Arizona. Alliance membership includes Banner Health, Dignity Health, HonorHealth, Northern Arizona Healthcare and Tenet Healthcare. The members represented in the Alliance have more than 80 acute hospitals and medical facilities across the state and employ more than 50,000 Arizonans encompassing nearly all segments of our healthcare economy including physicians, nurses, emergency care, pharmacy, rehabilitation centers, academic medicine and other ancillary services.

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