Arizona medical leaders say hospitals could close if Medicaid, Medicare are cut
PHOENIX (AZFamily) —As the Trump administration continues its efforts to downsize the federal government through widespread cuts, medical leaders are concerned about the future of Medicaid and Medicare.
More than two million people in Arizona are enrolled in Medicaid, known as AHCCCS.
In February, the U.S. House of Representatives passed its budget resolution which included house committees to be ordered to cut costs. The Energy and Commerce Committee, which oversees Medicaid, is being tasked with cutting at least $880 billion over ten years.
“Medicaid is hugely problematic because it has a lot of fraud, waste and abuse. Everybody knows that. We all know it intuitively,” said Speaker of the House Mike Johnson a couple of months ago.
Since then, no cuts to these coverage programs for seniors and low-income families, but medical leaders say it’s something they’re still preparing for.
“If you begin to erode that healthcare is eroded,” said Ann-Marie Allameddin, president and CEO of the Arizona Hospital and Health Association. “We’re doing everything we can to protect this coverage for the very most vulnerable in Arizona.”
While all hospitals would be impacted by cuts to these programs, rural hospitals could be the most at risk of cutting or closing. People in rural areas tend to have higher populations using Medicare and Medicaid for coverage. If the coverage goes away, people could stay away and not seek treatment. That in turn could make them sicker, and hospitals could have to make cuts as they don’t see as many patients.
“Some of those towns are 50 to 80 miles from Wickenburg and they travel a great distance to get here,” said President and CEO Jackie Lundblad of Wickenburg Community Hospital. “That might mean they have to drive another 40 miles in to the Phoenix metro area or further instead of coming here.”
Lundblad said time is the difference in life or death. If someone has an immediate issue like a stroke or heat attack, they don’t have hours to drive to a Valley hospital. Without rural hospitals, people in smaller communities would have to drive even further distances for care.
“We’re here for a reason and that’s to be that stop gap for people that need healthcare.”
What is a Critical Access Hospital?
A Critical Access Hospital (CAH) is a special designation given by the Centers for Medicare & Medicaid Services (CMS) to eligible rural hospitals in the United States. This designation is intended to ensure that small, rural communities have access to essential healthcare services, especially when larger hospitals may be too far away.
What Constitutes a Critical Access Hospital?
To be designated as a CAH, a hospital must meet the following criteria:
- Location: Must be located in a rural area, more than 35 miles from another hospital (or 15 miles in areas with mountainous terrain or only secondary roads).
- Size: Limited to 25 inpatient beds or fewer.
- Length of Stay: The average length of stay for acute care patients must be 96 hours or less.
- Services: Must provide 24/7 emergency care services.
- Medicare Participation: Must be a participant in the Medicare program.
Why Are CAHs So Critical to Small Town Communities?
- Local Access to Care: In rural areas, these hospitals often serve as the only accessible healthcare facility, providing emergency care, routine checkups, lab tests, minor surgeries, and obstetrics.
- First Line of Emergency Response: When every minute matters, a CAH may be the first—and only—option before a patient can be stabilized and transferred to a larger facility.
- Economic Anchor: CAHs are often one of the largest employers in small towns, supporting local jobs and economic stability.
- Health Equity: Without CAHs, many rural Americans would have to travel hours for basic care. These hospitals help reduce disparities in access to medical services.
- Community Trust: Staffed by people who often live in the same town, CAHs are deeply integrated into the fabric of the community, building strong patient-provider relationships.
In short, Critical Access Hospitals are lifelines—providing care where it’s needed most, supporting local economies, and playing an irreplaceable role in maintaining the health of rural America.
What does AzHHA do?
The Arizona Hospital and Healthcare Association (AzHHA) serves as the collective voice for Arizona’s hospitals and healthcare partners, aiming to enhance healthcare quality, accessibility, and affordability across the state. AzHHA’s mission is to collectively build better healthcare and health for Arizonans, striving to make Arizona the healthiest state in the nation by prioritizing people and patients, unifying stakeholders, and inspiring actionable change.
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