Tag Archives: arizona health care

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Price Corridor's Continuum Park Lands Advanced Business Services Company

 

Continuum Science & Technology Park in Chandler’s Price Corridor has landed its first major company — Nationstar Mortgage.

Nationstar is one of the nation’s leading mortgage servicers and lenders.

Nationstar will be placing 1,200 new jobs in 160,000 SF of space, with an option to expand. The company is currently occupying temporary space in the same building as tenant improvements are completed. RSG Builders is the general contractor and PHArchitecture is the architect.

“Nationstar is strong and growing, and we’re excited to be opening our newest site in Chandler,” said Nationstar Mortgage Executive Vice President Mike Rawls. “The Chandler area provides access to existing mortgage industry talent and a well-educated workforce. We look forward to building a great team here.”

The jobs will be in the advanced business services sector, including mortgage processing and origination as the company collects and processes loans.

“Chandler’s broad spectrum of industries serves us well as companies evaluate whether a community has the potential for industry partners,” said Chandler Mayor Jay Tibshraeny. “We have developed the workforce Nationstar needs through a strong financial services sector and the partnerships Chandler has in place with ASU and the University of Arizona.”

“I want to thank the Nationstar team for its confidence in, and commitment to Arizona,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “This project represents a significant investment in our state and will create hundreds of jobs for Arizonans. It continues to showcase Arizona as a state rich with talent and full of opportunity, with the government backing to support individual business success.”

Continuum is a 153-acre, master planned Science & Technology Park that advances the vision of the Price Corridor as a “super technology” region, making Chandler competitive on an international scale.

Continuum is expected to be home to 8,000 to 12,000 jobs and generate $250M to $300M in primary economic impacts at build-out.

“Nationstar’s desire for prominent identity, unparalleled infrastructure, and a quality labor pool made our project a perfect choice, and we couldn’t be more excited to have them as one of the first tenants at Continuum,” said Kevin Miller, Senior Vice President-Southwest Region, Capital Commercial Investments. “The addition of Nationstar continues to reinforce our position as one of the premier business parks in the valley.”

Nationstar joins notable employers in the Price Corridor in key industries of aerospace, life sciences, high technology R&D/manufacturing and advanced business services.

 

Arizona Health Care Cuts, AHCCCS

Arizona’s Mental Health Braces for AHCCCS Heavy Cuts

Sit back, close your eyes — after you have read this of course — and imagine your daughter, friend, brother or spouse suffering with no help in sight. A year ago you saw them excelling in life, overcoming their illness, stable with only happiness for the future when suddenly their standard medication was changed, their health services discontinued and their housing no longer an option. Now you are seeing your loved one’s health deteriorate, and each day becomes harder to cope.Arizona State Capitol, Flickr, Willem van Bergen

This scenario was a reality for thousands of children and adults facing mental illness last July when the Arizona Health Care Cost Containment System (AHCCCS) saw serious cuts. Those who were not determined Title-19 eligible — those not under the poverty level — faced the loss of brand-name medications, supportive housing and services on which they previously relied.

With Arizona projecting a 1.15 billion-dollar deficit in FY 2012, Governor Janet Brewer released her proposed budget cuts for FY 2011. These cuts are estimated at $1.1 billion. AHCCCS was cut by $541.5 million, making it possible for 280,000 people to lose coverage. These cuts leave 5,200 seriously mentally ill people with medication-only coverage and other losses similar to the cuts in March 2010.

“…the growth in Arizona Medicaid spending is a key driver of our state’s current budget crisis,” Governor Jan Brewer said in a statement on the cuts.  “Medicaid’s explosive growth, nearing almost 65 percent over the past four years despite ongoing attempts to stem its increases, is simply unsustainable and threatens to consume the core functions of state government.”

To some these cuts are seen as more than just balancing a budget but also a safety issue for Arizona.

“Arizona has one of the lowest grades for mental health in the nation,” said Patricia Bonivel, an Arizona resident whose spouse is diagnosed with a mental illness.Arizona Health Care Cuts, Mentally Ill Suffer

“Mental illness is not going away; we have to address the system, effectively streamline the system and work within an adequate budget line,” Bonivel said.  “This is not the time or area to slash costs; it can only end up with additional overburdened areas and does nothing to promote wellness and recovery — the goal of which needs to be attained for the sake of us all.”

In her recent statement on the budget cuts, Governor Brewer said she is “mindful of the very real impacts these reductions will have” but holds to the belief that “this is Arizona’s only option to restore [its] fiscal stability.”

Bonivel asks the question whether or not these cuts are worth the “small margin” of economic gain and said, “Looking at recent events in Tucson, I think the answer is NO; think about it!”

Now go for it. Close your eyes and imagine what you would do faced with these difficult decisions. You may surprise yourself.

State Budget Cuts Will Hit Arizona Hospitals - AZ Business Magazine Sept/Oct 2010

Despite Restoring Some Funds, State Budget Cuts Will Hit Arizona Hospitals

It was looking pretty grim at 1700 W. Washington St., as Gov. Jan Brewer and a badly splintered Arizona Legislature struggled to cobble together a state budget that would have the appearance of being balanced.

Taking a follow-the-money tactic, policymakers targeted programs such as education and health care that annually receive large sums of taxpayer dollars. The budget Brewer and Republican lawmakers put together, addressing a $3.2 billion shortfall for fiscal year 2011, sent shock waves throughout the health care community.

The Arizona Hospital and Healthcare Association (AzHHA) estimated the cuts would reduce hospital revenue by $1.15 billion in state and federal funds in FY 2011, which began July 1, and cost the overall health care community $2.7 billion. For example, the budget package eliminated coverage under the state’s Medicaid program — Arizona Health Care Cost Containment System (AHCCCS) — to 310,500 adults and children, and eliminated KidsCare, ending health care coverage for 47,000 children. KidsCare provides low-cost insurance for the children of parents who earn too much to qualify for Medicaid, but are still considered the so-called working poor.

Before the ink was dry on the bills the governor had signed, officials learned that the landmark health care reform bill passed by Congress prohibited such budget cuts under the threat of losing federal funds. So lawmakers passed another bill to restore money stripped from AHCCCS and KidsCare. Failure to have taken the follow-up action, officials said, could have cost Arizona more than $7 billion in federal money for health care.

AzHHA strongly supported the governor’s push for a temporary 1-cent sales tax increase, which voters approved by a 64 percent to 36 percent margin. The tax increase remains in effect until May 31, 2013, and is expected to generate about $3 billion over three years to protect education, public safety and health and human services from further cuts.

Despite avoiding a funding disaster, hospitals still are forced to deal with a considerable loss of government dollars. Laurie Liles, president and CEO of AzHHA, says hospitals sustained $50.1 million in cuts to the Disproportionate Share Hospital (DSH) program, which provides special funding to hospitals that treat a significant number of AHCCCS and uninsured patients. The state cut $16.7 million, resulting in a loss of $33.4 million in federal funds. The federal stimulus act of 2009 matches state dollars three-to-one for DSH, so when the state trims $1 from the program, the total loss is $4.

Hospitals also lost some $37.3 million in funding for graduate medical education, which helps pay for physician instruction programs.

“There is no funding for 2011,” Liles says. “That is a huge loss for Arizona, considering the significance of our physician shortage.”

In addition to those losses, the Legislature authorized AHCCCS to reduce all provider payments, including those to hospitals, by up to 5 percent for fiscal 2011.

“We don’t know what percentage cut that hospitals will receive,” Liles says. “Hospitals are planning on the full 5 percent, but we’re hoping it will be somewhat less.”

Since 2008, Arizona hospitals have sustained several hundred million dollars in payment cuts and freezes, which impact hospital employees — medical and non-medical, Liles says. The association has been monitoring how its member hospitals are dealing with the recession.

“We have found that hospitals are managing through a variety of ways,” Liles says, “with some staffing reductions, delays in capital construction and services to the community. Hospitals have had to make some very hard choices about services. Strategies that hospitals have been forced to employ affect all Arizonans.”

For example, Liles says, when hospitals are underpaid, either by AHCCCS or Medicare, hospitals shift those costs onto commercial health plans to make up the difference.

“We call that cost shift a hidden health care tax,” she says. “That results in higher premiums for businesses and families. We all end up paying for the cost shift that hospitals are forced to make.”

Liles, who previously was the chief lobbyist for AzHHA, says she spent a lot of time over the past few years visiting with legislators regarding the impact of the hidden health care tax.

In 2009, the Arizona Chamber Foundation, an affiliate of the Arizona Chamber of Commerce and Industry, determined that all purchasers of health care coverage pay 40 percent more for hospital care through commercial insurance as a result of underpayments from AHCCCS and Medicare, Liles says.

“We look for more of the same,” she says.

Hospitals are counting on Congress to continue funding AHCCCS at an increased level.

“We have shared our concern with our congressional delegation,” Liles says. “The enhanced federal medical assistance percentage is absolutely vital to Arizona.”

The increased funding amounts to about $480 million — money needed to cover the expanded AHCCCS population — that the state is mandated to continue covering as a result of national health care reform. Without additional federal funding, Liles wonders: “How are our Legislature and governor going to pay for that? We are concerned about the care we provide. There are only so many places our state can cut.”

By The Numbers: Health Care Cuts

  • $50.1 million in cuts to the Disproportionate Share Hospital (DSH) program
  • $37.3 million in funding for graduate medical education
  • AHCCCS can reduce all provider payments by up to 5 percent

Arizona Business Magazine Sept/Oct 2010

Rona Curphy - AZ Business Magazine Sept/Oct 2010

Rona Curphy, President And CEO Of Casa Grande Regional Medical Center

Rona Curphy
President And CEO
Casa Grande Regional Medical Center
www.casagrandehospital.com

As president and CEO of Casa Grande Regional Medical Center, Rona Curphy has moved to the top of the medical field thanks to her years of dedication.

From 2002 to 2009, Curphy served as the chief nursing officer at the nonprofit community-based hospital in Casa Grande. When she was asked to be interim CEO in February 2009, she jumped at the new experience. Curphy saw it as an opportunity to grow in her profession and to learn new skills. About five months later, Curphy was named Casa Grande Regional Medical Center’s official president and CEO.

As president and CEO, Curphy works to ensure that the hospital implements the strategic plans adopted by the board of directors.

“My duties are making sure we meet our mission, our vision of organization, making sure people are on top of strategic goals, engaging partners, providing the best quality health care environment for them to practice in, and making sure the staff has a great environment to work in,” Curphy says.

Curphy emphasizes that in her role she tries to be a visible and active community member. She sits on the chambers of different cities, on an economic development board and attends events so the hospital will be viewed as a part of the community.

Although Curphy currently does not hold a position on the Arizona Hospital and Health Care Association’s (AzHHA) board or committees, she has been very active with the organization in the past. While serving on the patient safety committee, Curphy looked at new patient initiatives throughout the state.

“I had to look at everybody’s concerns and issues as we made decisions going forward,” Curphy says.

She also served on the Campaign for Caring committee, where she ended up chairing one of four task forces. On the government affairs committee, Curphy helped give legislators ideas on what stands the hospital and health care community wanted them to take on issues. She points out that AzHHA is an important organization to the community and to hospitals.

“AzHHA is our voice across Arizona,” Curphy says. “Having one voice where lots of members can give ideas, gives us opportunities to work with the Legislature to get things done.”

Curphy says another key benefit of AzHHA is that it offers the opportunity to network nationwide. But Curphy adds, a big challenge AzHHA faces is being able to successfully manage networking events during a very busy time in the health care industry. With all of the new legislation on health care being written and passed, it is easy to get caught up in focusing solely on the issues, rather than the networking aspect of the organization, she says.

Curphy wants to see more members take advantage of the opportunities that AzHHA presents, and to get involved in the events the organization hosts. In addition, Curphy says AzHHA has to focus on maintaining and recruiting new members, “… and making sure (the organization is) not too costly for members, or difficult for members to participate. If they make the cost too much, there will only be a few members, and the end result doesn’t allow for great networking.

“I think it is up to (AzHHA) to get out to member hospitals, to get people out there to say, ‘Get involved,’” Curphy says.


arizona Business Magazine Sept/Oct 2010

Woman in medical clothing sitting at a laptop

AzHHA Expands Its Online Job Board To Encompass The Full Spectrum Of Health Care Jobs

At a time when economic news is dominated by downsizing and layoffs, the Arizona Hospital and Healthcare Association (AzHHA) is expanding its efforts to recruit new employees for positions ranging from janitor to physician.

Although the state’s unemployment rate hovers at just under 10 percent, Arizona health care facilities added 1,700 jobs in January alone. To meet that continuing need, the association launched an enhanced interactive Internet job board — www.AzHealthjobs.com — that reaches from coast to coast.

Originally launched about 10 years ago, the Web site was created by AzHHA to enable member hospitals to post open positions, much like Monster.com and Jobing.com, but was targeted strictly to hospital positions. Now, with an expanded scope that was launched on Feb. 1, the Web site is open to all segments of the health care industry, including nursing homes and doctor’s offices.

What’s more, posted jobs don’t necessarily have to be in the medical field. For example, CPAs and others who want to work in health care facilities are encouraged to post their resumes.

“The more that we get the word out for our enhanced Web site, the more jobs will be available,” says Patricia Weidman, director of work force and staffing services for AzHHA and who oversees the job board. “This is how we’re helping people who are looking for jobs. A lot of people don’t know about it, because previously it was limited to hospitals. We have marketed the Web site at conventions. We tell people to check it out. Hospitals use engineers, CPAs, janitorial, housekeeping, laundry positions. A lot of non-clinical positions are listed.”

Health care used to be considered recession proof, but that changed somewhat during this past brutal downturn. Weidman says the expanded job board can help make the hiring process more cost efficient for health care providers.

“We’re very excited about the enhancements of AzHealthjobs.com,” she says, “because we know how critical it is for employers in the health care industry to attract first-rate talent with a minimum expenditure of time and resources. And it’s important for us to help enable smooth career transitions for those seeking health industry jobs.”

Weidman says the job board has been a valuable tool for Arizona hospitals, which currently employ 73,000 people and generate $11.5 billion to Arizona’s gross state product.

Job seekers pay nothing to post their resumes on AzHHA’s Web site, but fees are paid by employers with positions to fill. Positions can be posted for 30 days for a fee of $350. At any given time, hospitals and other employers list 1,000 to 1,500 jobs, with direct links to individual career sites, Weidman says.

As part of the expansion, AzHHA joined the National HealthCare Career Network (NHCN). The NHCN partnership brings together the best sources of highly qualified talent from leading professional and trade associations representing skills in all sectors of health care.

AzHHA also is partnering with Boxwood Technology, a leading provider of career center services for the association industry. Boxwood, which administers and manages AzHHA’s jobs site, is the only such provider endorsed by the American Society of Association Executives. Boxwood also provides technical support, customer service, accounting, content management and ongoing product development. Weidman says Boxwood has a network of more than 185 leading health care associations and professional organizations.

Any money generated from the Web site goes back to the nonprofit side of AzHHA and helps keep dues down, Weidman says.

“So hospitals are benefiting, even though we are opening the Web site up,” she adds. “Some hospitals had expressed concern, but we were able to reassure them.”

It’s still too early to tell how effective the newly expanded Web site will be, Weidman says. It will take time to get the word out, which she does on a monthly basis at nursing conventions and job fairs around the country.

“I tell everyone to get their resumes on there if they’re looking for a health care position in Arizona,” Weidman says. “This is the place to be.”

Especially for nurses. In the past, some nurses Weidman met at conventions would say they didn’t want to work in a hospital, but preferred something else, such as a nursing home. For a nurse, working in a hospital is not the same as in a nursing home, school, doctor’s office or prison. Different skills are required, and the pace is much quicker, for example, in emergency rooms and intensive care units. With the expanded Web site, nurses looking for a position can zero in on specific career opportunities.

And despite the sorry state of the economy, hospitals, not as hard hit as other industries, are still hiring nurses.

“Hospitals have been using a lot of temporary staff, some nurses are taking additional shifts, and some part-timers are going full-time to fill any shortages,” Weidman says. “We wouldn’t have this program if they weren’t still hiring.”

A recent survey indicates that one-third of the RNs in Arizona are 55 or older.

“When they retire, we still will have a nursing shortage,” Weidman says. “We’re telling hospitals that this is a perfect time to build their own resume database, so when those positions do come up, they can tap into that database and be ready to go when they have the need.”

money in vice

The Economic Recovery Begins In 2009, But It Will Be Slow Going

The national and state economies are expected to start feeling the effects of a recovery during the last quarter of 2009. However, the recovery over the next year will be slow, with unemployment continuing to rise and economic growth anemic at best. Meanwhile, the state’s expenditures are rising, even as revenue continues to fall, setting the stage for future budget cuts and an expected tax increase.

That was the consensus forecast unveiled by top economic experts from the W.P. Carey School of Business at Arizona State University and the Arizona governor’s office at the annual Economic Outlook Luncheon on May 20. Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at W.P. Carey and editor of Economy@W.P. Carey, provided an overview of current economic conditions on the state and national level, and offered a forecast for the coming year.
“The economy is going to show some signs of recovery in the last part of 2009, but the way I like to look at this is that lots of our economic indicators will still be underwater in a sense — they just won’t be as far underwater,” he said. “We’ll probably see positive growth in GDP, we will see job losses getting smaller, but there will still be job losses. There will still be people claiming unemployment insurance and, of course, unemployment rates will still be going up.
“It’s going to be a deep, sort of U-shaped recovery and 2011 will probably be a pretty good year of job growth,” McPheters added. 
In the meantime, job losses will continue to mount. In March, with an over-the-year employment decline of 7.1 percent and 136,000 jobs lost, the Valley just edged out Detroit as the weakest large metro labor market in the nation. And even as the economy begins to recover, the Greater Phoenix area will still see its labor market contract by 1 percent in 2010, according to McPheters.
Nationally, McPheters stressed that while the current recession has been painful, it still is not on par with the Great Depression. The Great Depression was marked by four consecutive years of decreases in Gross Domestic Product (GDP), while the current recession is expected to result in four consecutive quarters of decrease in inflation-adjusted GDP. In fact, in the first year of the recession, the national GDP actually increased by 1.1 percent.
“During 2008, the first year of the recession, you would expect that the GDP would be decreasing,” he said. “Well, one of the factors holding it up was exports. Exports continued strong in the United States through 2008.”
This year, however, exports are expected to drop by 10 percent. That’s just one example of how the national and state economies will continue to struggle as the recovery begins to take hold. Another example is the expected freefall in the commercial real estate market, especially in Arizona.
“Commercial is the next shoe to drop and we have seen this pattern before,” McPheters said. “Even as you see residential (construction) begin to pick up, I think you can expect that commercial building is going to be very, very weak all the way through 2010 and probably 2011, because what we need to see is population growth come back and job growth to come back. There’s no point in building retail space and office space if the jobs are not there and the consumer is not coming out to shop.”
And it is consumers, who account for 71 percent of GDP, who really hold the key to the economic recovery.
“The consumer is the only part of this economy that can bring us back,” McPheters said. “Consumers are not going to come back into the game until home prices stop falling, until the stock market stabilizes, until they see unemployment rates have peaked out and job losses start to get smaller and smaller. And the consumer has to have confidence to buy, and believe it or not, the consumer has to back off of their inclination to save their money.”
In March, the savings rate as a percent of disposable income was 4.2 percent, up from 2.6 percent six months earlier. While increased savings are considered a good thing in robust economic times, a pullback by consumers as an economy tanks can have devastating effects. McPheters pointed out that for each 1 percent increase in the savings rate, approximately $100 billion are being pulled out of the consumer-spending stream.
However, McPheters expressed confidence that the very calamity that sent our state and national economies reeling will eventually add to Arizona’s attractiveness to new residents and businesses — falling home prices.
“Housing prices have now returned to the traditional level, where Arizona housing prices are now more affordable than the national average,” he said. “In 2005 and 2006, we had come to the point where we were one of the least affordable markets. That has turned around and it has turned around very quickly. Of course that has been very painful.”

Dennis Hoffman, director of the L. William Seidman Research Institute at W.P. Carey, agreed with McPheters, adding that he believes the state’s economic rebound will be strong.

“This of course is the big question: What kind of bounce will take place? Now, I’ll have to say that the dramatic shakeout in prices in housing, while it has been absolutely disastrous for a number of folk and put a lot of pressure in a lot of different places, it might set us up for a more robust recovery than I would have thought six to nine months ago,” he said. “The thinking is really, very, very simple; an attractive attribute of Arizona has historically been great climate, affordable housing and a place to get a job. That third aspect really doesn’t exist right now, but it could exist if our economy recovers at a little faster pace.”
In the economic downturns of the past four decades, Arizona has bounced back strongly, and Hoffman is confident history will repeat itself, especially if the state and Valley can re-create the environments that people from around the country have found so attractive.

However, a major wrench in making the state attractive again is Arizona’s current budget crunch. In fiscal year 2009, the state’s budget gap stands at $1.6 billion. In fiscal year 2010, that’s expected to almost double to $3 billion dollars. As the economy has worsened, unemployment has soared to almost 8 percent, foreclosures have skyrocketed and businesses have closed their doors. As a result, billions of dollars in revenue from income, property, sales and business taxes have evaporated. Conversely the need for state services has exploded.

“We’re really seeing the effects of the downturn in the economy, both in terms of state revenues — our collections are down at a very significant rate — and likewise, our caseloads are up at a very significant rate, because more of our citizens are in need of services,” said Eileen Klein, director of the Arizona Governor’s Office of Strategic Planning and Budgeting, adding that in the past two months alone the Arizona Health Care Cost Containment System (AHCCCS) has enrolled 50,000 people.
Hoffman pointed out that in the past, $48 to $50 out of every $1,000 of personal income had gone into the state’s general fund.

Hidden Tax Revealed Chart

Hidden Health Care Tax Hits Workers

The Arizona Hospital and Healthcare Association (AzHHA) and the Arizona Chamber Foundation are joining forces to stop what we call a hidden health care tax on businesses and consumers. According to a study released by the Arizona Chamber Foundation, which is associated with the Arizona Chamber of Commerce and Industry, Arizona employers and the state’s 3.5 million privately insured consumers pay 40 percent above cost for hospital services, primarily because the state and federal governments significantly underpay hospitals for those same services.

“This study shines a light on what Arizona business and health care leaders refer to as the hidden health care tax,” says Suzanne Taylor, executive director of the Arizona Chamber Foundation. “The study demonstrates that when state or federal lawmakers reduce hospital payment levels to below their costs, Arizona businesses and consumers pick up the tab in the form of higher health insurance premiums.”

The study, An Analysis of Hospital Cost Shift in Arizona, was conducted by the nationally recognized Lewin Group. It found that in 2007, private insurance payments for Arizona hospital services exceeded costs by $1.3 billion in order to offset underpayment from:

  • State government — The Arizona Health Care Cost Containment System (AHCCCS), Arizona’s Medicaid program that paid 79 percent of hospitals’ costs for providing services, underpaid Arizona hospitals by $407 million.
  • Federal government — Medicare, which paid 89 percent of Arizona hospitals’ costs for delivering services, underpaid Arizona hospitals by $481 million.

Uncompensated care — Arizona’s hospitals absorbed $390 million in 2007 — 4.4 percent of their total costs — for services they delivered, but for which they received no compensation.

Public insurance programs such as AHCCCS and Medicare are the primary drivers behind the hidden health care tax, paying hospitals below what it costs to treat patients. To cover these costs, hospitals shift the burden to private health insurers by negotiating higher rates to provide coverage.

“In this downturn, the hidden health care tax is particularly harmful to the economic well-being of our state,” Taylor says. “Employers throughout Arizona are grappling with incredible challenges ranging from declining revenues to shrinking credit. The hidden health care tax is another weight on businesses that want to continue providing employer-based insurance to their employees.”

Arizona employers and their employees typically share the cost of health insurance coverage, with employers paying an average of 81 percent of a single policy and 75 percent of a family policy for workers enrolled in their respective health plans. According to the study, in 2007 inadequate payment by AHCCCS and Medicare, as well as uncompensated care, increased private health insurance premiums in Arizona by 8.8 percent or $361 for every privately insured person.

The study revealed that public program underpayment in 2007:

  • Added $1,017 — $324 of which is due to AHCCCS underpayment — to the annual price tag of a typical family health insurance policy, bringing the cost to $11,617.
  • Increased by $396 — $126 of which is due to AHCCCS underpayment — the annual cost of a single health insurance policy, bringing the price tag to $4,519.

Underpayment by public insurance programs for hospital services exacts a steep price on employers, their workers and private purchasers of health insurance. In 2007, the cost shift due to AHCCCS, Medicare and uncompensated care cost: employers an additional $941.7 million, $301.3 million resulting from AHCCCS underpayment; employees an additional $292.8 million, $93.7 million of it due to AHCCCS underpayment; and private purchasers of health insurance an additional $41.4 million, $13.2 million of it resulting from AHCCCS underpayment
AHCCCS payment rate freeze.

  • Five percent AHCCCS payment rate reduction.
  • Disproportionate share hospital payments.
  • Graduate medical education.
  • AHCCCS payments to rural hospitals.
  • State savings of  $95 million.
  • Lost federal funds of $250.4 million.

Total dollar increase in private insurance premiums due to the cost shift of $1.48 billion in 2009 and $1.63 billion in 2010.
Individual increase in premiums of 19 percent for privately insured Arizonans due to the cost shift.