Arizona hospitals stand to win big with Brewer’s Medicaid expansion

The initial draft of the AHCCCS’s hospital assessment that will fund Governor Brewer’s Medicaid expansion plan has been completed. During the last legislative session, hospitals fought hard and spent big money in support of expansion. It will pay off in a substantial way.

According to the draft, nearly every hospital system in the state is expected to gain money overall during the first six months of the expansion. Additional information on AHCCCS’s website indicates three hospitals from Banner Health’s system, along with Scottsdale Healthcare’s Shea Medical Center and Oro Valley Hospital, will lose money from the assessment during the first year. However, Banner will still gain over $14 million in Medicaid payments from all of its other hospitals.

The total collected from all hospitals will be $75 million under the assessment, and they will receive a return of nearly $184 million in the first year.

According to Capitol sources, Banner Health, which has three hospitals that will lose a collective $1.1 million under the assessment, is not pleased about any of its hospitals losing money and are expected to review the plan. Comments will be submitted to AHCCCS.

AHCCCSbrewercarehospitalsMedicaid expansionpeople's veto