AHCCCS to Provide Funding to Critical Access Hospitals
The Arizona Health Care Cost Containment System (AHCCCS) Wednesday announced it would make more than $50 million in accelerated hospital payments and advances and extend an additional $5 million in new COVID-19 related funding to Critical Access Hospitals throughout the state.
The Arizona Hospital and Healthcare Association, representing over 80 hospitals and healthcare members in Arizona, applauds the quick action on behalf of AHCCCS and Governor Doug Ducey to provide this critical funding to our hospitals working on the front lines of this COVID-19 pandemic response.
“On behalf of AzHHA member hospitals across the state, I would like to thank Governor Ducey and AHCCCS Director Snyder for making these funds available,” said AzHHA President and CEO Ann-Marie Alameddin. “We hope they will leverage new and existing funds to help offset the $430 million to $575 million in monthly losses hospitals are reporting. Healthcare providers are facing severe cash shortages NOW. Cash reserves are being depleted drastically and many facilities will have no cushion to pay salaries and purchase needed supplies to respond to the disaster.”
AzHHA analyzed data from the 2018 Uniform Accounting Report to calculate the revenue loss to Arizona hospitals. Member hospitals report revenues are down 30-40% due to the cancellation of elective procedures and a reduction in emergency department visits. On a statewide basis that would equate to a revenue reduction of $430 million to $575 million per month.