Phoenix, AZ- The Health System Alliance of Arizona issued the following statement regarding the passage of House Bill 2668, the Health Care Investment Act, from the Arizona House of Representatives:
“We thank Representative Regina Cobb and the members of the Arizona House of Representatives who supported H.B. 2668, the Health Care Investment Act,” said Jennifer Carusetta, Executive Director of the Health System Alliance of Arizona. “The health care community is united in this effort to address the $1 billion Medicaid shortfall by infusing much needed resources into our health care delivery system. The Health Care Investment Act will allow hospitals and health care providers to invest in technology, workforce and other areas needed to meet the growing demand for services. In addition to helping patients, these investments will help bolster our state’s economy with an overall impact of $2.3 billion. Our hospital systems are committed to serving the people of Arizona with high quality care and keeping Arizona healthy.”
The Health Care Investment Act, sponsored by Representative Regina Cobb and Senator David Gowan, 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.