Banner, Dignity, Abrazo systems withdraw from hospital association

The Arizona Hospital and Healthcare Association (AzHHA) is getting the cold shoulder from three of the largest hospital systems in the state--Banner Health, Dignity Health (formerly Catholic Healthcare West) and Abrazo Health Care--who are pulling out from the state association. The hospital systems said the withdrawal, with their membership ending March 1, comes from concerns over the group's legislative and regulatory views, The Republic reported.

"The association is no longer consistent with nor reflective of our collective interests on legislative and regulatory issues before the governor and state Legislature," according to the letter.

With deep cuts to Medicaid, representatives from the health systems said the move is a way to reverse the impact of the reimbursement reduction, the article noted.

The healthcare systems represent more than 20 hospitals, according to The Republic. The loss of the three member systems will cost the hospital association $1 million in collective annual dues, the Phoenix Business Journal reported.

"This is an incredibly challenging time for Arizona hospitals, and we are hopeful this decision is temporary," AzHHA President and Chief Executive Laurie Liles said in Friday's press release.

Earlier this month, Steward Health Care System abruptly announced it was withdrawing from the Massachusetts Hospital Association.

For more information:
- read the AzHHA press release (.pdf)
- read the Phoenix Business Journal blog post
- here's the Republic article

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