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October 6, 2016

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Finance Advisory Committee Convenes on Revenue and Budget Outlook
Debbie Johnston, Sr. Vice President of Policy Development

The Finance Advisory Committee (FAC) met this week to review key data affecting state revenue and budgetary forecasts. Joint Legislative Budget Committee (JLBC) staff reported that FY 2016 appears to be closing out very close to the budgeted balance of $225 million. Over the next two years revenue growth is expected to remain near 4 percent and is projected to reach 5 percent by FY 2020. The four-year forecast is generally in line with the post-recession recovery. JLBC projects a structural balance (on-going revenue versus on-going spending) of negative $50 million in FY 2017, positive $24 million in FY 2018, and positive $146 million in FY 2019—assuming baseline spending.

FAC members generally agreed that the Arizona economy will continue to grow, but at a sub-par level compared to previous cycles. A major factor impacting Arizona’s growth is a slowdown in population flows according to a presentation by Elliott Pollack.

AzHHA Annual Leadership Conference Deadline 
Karen Fallquist, Education and Office Coordinator

If you haven't already registered, this is your last chance to do so for the 2016 AzHHA Annual Leadership Conference. Registration closes on Monday, October 17th. This year breakout sessions will be of interest to more than just the C-suite and we make it easy for you to bring your team by offering a multi-registrant discountDiscussions will be valuable for anyone in the areas of nursing, cyber security, communications, and behavioral health. For the full agenda, click here and follow the conversation on Twitter with #AzHHA2016.

ADHS Releases Draft Rules on Trauma Services and Communicable Diseases
Debbie Johnston, Sr. Vice President of Policy Development

The Arizona Department of Health Services (ADHS) opened two rulemakings last month that will impact hospitals once finalized. The first amends Trauma Center regulations including provisions relating to designation, responsibilities, and registry requirements. ADHS held its first stakeholder meeting last week and will convene monthly workgroup meetings over the remainder of the year to flesh out the draft rules. AzHHA is participating in the workgroup and will also convene members for additional feedback. AzHHA members will receive an alert regarding this in the coming days.

The second rulemaking makes revisions to reportable communicable diseases and their control measures in order to “ensure more accurate tracking and better reporting and improve the effectiveness of the rules in preventing a significant threat to public health.” Updates include adding the Zika virus as a reportable condition. ADHS has posted an on-line survey seeking input on the draft rules, which will close Oct. 23rd. AzHHA is tracking this proposal and welcomes feedback from members.

Welcome Ryan House!
Gina Hillis​, Director of Governance and Special Assistant to the President

AzHHA is pleased to announce new Healthcare Member Ryan House. With a focus on quality of life and continuity of care, Ryan House is committed to compassionately caring for children and their families. With the leadership of Executive Director Alyssa Crockett, Ryan House provides respite and palliative care for children and their families as they navigate life-limiting or end-of-life journeys.Their approach addresses the emotional, spiritual, and social needs of the family while also providing relief of the symptoms, pain, and stress associated with any serious illness.

CMS Approves AHCCCS Waiver Extension, Rejects Work Requirement and Coverage Time Limit
Debbie Johnston, Sr. Vice President of Policy Development

Last week, the Centers for Medicare & Medicaid Services (CMS) approved the State’s Sect. 1115 waiver extension. The extension will allow AHCCCS to establish a new Choice, Accountability, Responsibility, Engagement (CARE) program. Under CARE, the new adult group earning above 100 percent of the federal poverty level (FPL) can be charged monthly premiums of up to 2 percent of household income and co-payments for certain services, the total of which may not exceed 5 percent of total household income. While CMS did not approve the State’s original request for a six month lock-out period due to non-payment, they will permit the Administration to disenroll individuals who fail to make payments after a two-month grace period. Such persons may re-enroll at any time.

In addition, CMS approved the creation of new AHCCCS CARE accounts and a “Healthy Arizona” incentive program. This program seeks to encourage healthy behaviors by eliminating monthly contributions for up to six months for those who meet health targets and by providing incentive payments to individuals in AHCCCS CARE. The Administration has posted a fact sheet outlining the new AHCCCS CARE authorities. CMS rejected the State’s requests to limit Medicaid coverage to five years, to include a work requirement as a condition of coverage, to charge monthly premiums for those below 100 percent FPL, and to charge fees if beneficiaries missed appointments. The State has 90 days to submit an Operational Protocol to CMS detailing how the program will be administered.

The Administration continues to work with CMS on elements of its proposed Delivery System Reform Incentive Payment (DSRIP) model and American Indian Medical Home proposal.

Point of Pride

We all know the benefits of clean hands especially for hospital staff. Hand washing is simple, fast, and effective and it remains one of the best ways to reduce germs and prevent the spread of illness. This week Tucson Medical Center began their hand hygiene campaign to raise awareness about the importance of clean hands. Part of this campaign includes a music video written, sung, and performed by the TMC staff. This video is one of many efforts to keep patients safe and to help make Arizona the healthiest state in the nation.

In the News

Banner Health's Summer Data Hack Triggers 10 Civil Lawsuits

See a Doctor Via the Phone

Urgent Care with Specialists on Staff a First for AZ

GV Hospital Announces New CEO

60K Self-insured in Maricopa County Lose Coverage, Left With 1 Healthcare Provider

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