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Northern Arizona Healthcare warns funding cuts under new federal law could hit rural hospitals; outlines $50B rural transformation fund and Cottonwood cancer‑t
Summary
Executives from Northern Arizona Healthcare told Sedona council that federal changes will reduce Medicaid and marketplace subsidies, threatening millions in local hospital revenue; they described a $50 billion competitive rural transformation fund and plans for a $35 million cancer center in Cottonwood.
Executives from Northern Arizona Healthcare (NAH) briefed the Sedona City Council on Thursday about expected impacts of recent federal legislation on rural health systems and on NAH’s plans for expanding services in the Verde Valley.
Kyle Lathrop, NAH chief legal officer, said the new federal law ends certain pandemic-era marketplace subsidies, tightens Medicaid eligibility rules that may require demonstration of employment or active job searching and includes provisions that will lower Medicaid reimbursement for hospitals over a multi-year period. NAH estimates the changes will reduce revenue “in the millions” and said hospitals are revising billing, care models and administrative plans to reduce exposure.
“Some of this is going to come to light in the next year to 18 months,” Lathrop said, and added NAH’s financial impact estimates are preliminary: “What we know today is our best…
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