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The Hertel ReportThe Hertel Report

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The Hertel Report Winter State of the State Conference

The Hertel Report Winter State of the State Conference

News
CMS Announces Drug Pricing Models As Wegovy Pill Gains FDA Approval

CMS Announces Drug Pricing Models As Wegovy Pill Gains FDA Approval

CMS Rules
Study Links Hospital REIT Acquisitions to Higher Closure And Bankruptcy Risk

Study Links Hospital REIT Acquisitions to Higher Closure And Bankruptcy Risk

Open
AMA Study: Handful of Insurers Continue to Dominate Arizona Health Insurance Market

AMA Study: Handful of Insurers Continue to Dominate Arizona Health Insurance Market

News
Arizona News

Healthcare Entrepreneur Hugh Lytle Enters Arizona Governor’s Race as Independent

Arizona’s 2026 governor’s race is expanding beyond the two major parties, with a longtime healthcare executive stepping into an already competitive field as an independent candidate. Hugh Lytle, founder and former CEO of Scottsdale-based...
National News

ACIP Chair Suggests Vaccines, Including Polio, Should Be Optional

The Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) was widely criticized for discussing revisions to the childhood immunization schedule. This week, the committee's new chairman, Kirk Milhoan, M.D., Ph.D. went on a podcast and appeared to suggest an openness to reviewing...
CMS Rules

CMS Keeps MA Rate Flat in 2027 Advance Notice

On Monday, the Centers for Medicare and Medicaid Services (CMS) issued a proposal for the 2027 Medicare Advantage (MA) and Part D Advance Notice. The agency proposed a slight increase of 0.09%, shocking shares of publicly traded insurance companies. The meager increase proposal comes after the Trump administration granted a generous...
National News

U.S. Withdraws From WHO

Last Thursday, the United States formally withdrew from the World Health Organization in a move that many in the scientific community are calling "dangerous." Historically, the United States had been the most influential member of the 194-member organization and was its largest financial contributor. The withdrawal was announced in a...
National News

Democrats Pivot on Spending Bill Following Minneapolis Killing

Six annual spending bills for the budget year need Senate approval this week, including an appropriations bill that would fund the Department of Health and Human Services through September. But following the murder of Alex Pretti by Customs and Border Patrol agents on Saturday, Democrats have vowed to oppose the bill without changes to...
National News

AAP Publishes Vaccine Recommendations, Departs from HHS

Earlier this month, the Centers for Disease Control and Prevention (CDC) announced significant modifications to the childhood vaccine schedule, cutting the total number of recommended vaccinations from 17 to 11. On Monday, the American Academy of Pediatrics released its own immunization guidelines to recommend that children continue to...
Arizona News

Arizona Autism Therapy Providers Face New Contract Terminations as Medicaid Pressures Intensify

Arizona’s autism therapy network is under fresh strain this week after UnitedHealthcare began terminating contracts with Action Behavior Centers, prompting new concerns about access to care for children receiving Applied Behavior Analysis therapy under Medicaid managed care plans. Parents told AZ Family they received notices that...
White Papers, E books, Reports and more

Paragon and KFF Explain PBMs

As pharmacy benefit managers (PBMs) are once again poised to fall under regulatory constraints, the Paragon Health Institute has published an explainer on PBMs, how they work and why they've received so much public scrutiny. The explainer by Paragon, "PBM 101: What They Are and How They Affect Drug Prices" explains that PBMs work as a...
National Reports & Surveys

UnitedHealthcare & Optum Recalibrate After Cost Pressures, Set 2026 Recovery Plan

UnitedHealth Group (UHG) released its 2025 end-of-the-year report, which begins with double-digit revenue growth, then pivots to signaling a deliberate pullback in 2026 and pledges to prioritize margin repair over membership expansion, a shift with outsized implications for Medicare Advantage, Medicaid and pharmacy markets, including...
National News

CMS Reports $28.83B of Medicare FFS Improper Payments in 2025

The agency estimates that there were $28.83 billion in improper payments to traditional Medicare, which it estimates are down from $31.7 billion in 2024. The Center for Medicaid & Medicare Services acknowledges improper payments are not indicative of fraud or abuse but are typically the result of clerical error. The agency looked...
Mercy Care Faces Lawsuit Over Autism Therapy Contract Termination Arizona News

Mercy Care Faces Lawsuit Over Autism Therapy Contract Termination

An Arizona Medicaid contract dispute involving one of the state’s largest autism therapy providers and one of the largest Medicaid health plans is escalating into litigation, raising questions about network adequacy, reimbursement pressure, and continuity of care for children receiving applied behavior analysis services. According...
Bipartisan Funding Bill Enacts a Number of U.S. Health Priorities National News

Bipartisan Funding Bill Enacts a Number of U.S. Health Priorities

On Tuesday, senior members of Congress announced a deal to fund the government for 2026. The bill would resurrect a number of bipartisan measures that were poised to pass in late 2024 but were undermined by then-President-elect Donald Trump. The new bill would extend Medicare telehealth and hospital-at-home waivers for two and five...
National News

Trump Introduces the Great Healthcare Plan

Last week, President Donald Trump introduced "The Great Healthcare Plan," a policy framework that aims to lower drug prices and cut medical costs for consumers. In a video address, President Trump called on Congress to enact his Great Healthcare Plan and consolidate the various Trump-era health-adjacent initiatives into a single law....
Senate Report Alleges UnitedHealth Group's Coding Abuse to Raise Profits Arizona News

Senate Report Alleges UnitedHealth Group's Coding Abuse to Raise Profits

A Senate report shows that UnitedHealth Group (UHG), the parent company to the nation's and Arizona's largest Medicare Advantage (MA) insurer, UnitedHealthcare (UHC), is artificially inflating the risk adjustment scores of its MA members in order to achieve higher reimbursement from the Medicare program. The report is based on 50,000...
National News

As UHG Prepares to Unveil 2025 Q4 Financials, CEO Pledges an ACA Subsidy Rebate

All eyes are on UnitedHealth Group's last quarterly financial report of 2025 (Q4). The insurance giant's financials are expected to signal the relative strength of the economic sector's effort to prop up much of the job growth in the American economy and respond to aggressive threats from the Trump administration. UnitedHealth Group...
Arizona News

Feds Reverse SAMHSA Grant Cuts After Bipartisan Backlash

A day after termination notices went out to thousands of substance use disorder and mental health programs nationwide, the federal government reversed course and reinstated the funding. The abrupt cancellations at the U.S. Substance Abuse and Mental Health Services Administration (SAMHSA) would have affected roughly 2,700...
MedPAC: January MA Status Report White Papers, E books, Reports and more

MedPAC: January MA Status Report

As Medicare Advantage (MA) data watchers wait until mid-February for CMS to release January enrollment figures, the Medicare Payment Advisory Commission has already completed a rearview analysis of the 2025 MA market and provides insights into 2026. In its annual report, MedPAC confirms three familiar but still consequential...
Arizona News

Banner Health Expands Pediatric Emergency Care in Tucson

The new pediatric emergency department at Banner Children’s at Diamond Children’s Medical Center in Tucson, expands emergency capacity at southern Arizona’s only Level II pediatric trauma center and strengthens access to specialized care for children across the region. The new pediatric ED features 22 treatment rooms, a...
Arizona News

HonorHealth Leads Arizona in National Nursing Excellence Recognition

HonorHealth, a Valley-based nonprofit healthcare system serving more than five million people across the greater Phoenix metropolitan area, continues to lead the state in critical care nursing excellence recognition. HonorHealth now has 12 Beacon-recognized nursing units across five medical centers, representing 75% of the 16...
Hobbs Proposed 2027 Budget - AHCCCS Asks $46.4M For Initiatives Arizona News

Hobbs Proposed 2027 Budget - AHCCCS Asks $46.4M For Initiatives

Arizona Gov. Katie Hobbs released her proposed $17.7 billion FY2027 executive budget last Friday, quickly drawing fire from Republican lawmakers and setting up negotiations at the state Capitol over taxes, Medicaid funding and administration, SNAP benefits, housing support, education funding, and artificial intelligence as well as how to...
National News

Fallout From Childhood Vaccine Schedule Changes Persists

Following the Department of Health and Human Services' overhaul of the childhood vaccine schedule, more details are emerging about what the new recommendations entail and how they could impact providers and patients. When first announced, much of the Center for Disease Control and Prevention's new guidance was unclear, but this week...
Arizona News

AZ Measles and Flu Update

This week, the so-called "superflu" continues to drive an elevated case rate in Arizona and neighboring states, but other seasonal illnesses are also on the rise and the measles outbreak remains ongoing. There have been a total of 223 measles cases in Arizona since the outbreak began, largely concentrated around the town of Colorado...
National News

Epic Sues Health Gorilla for Patient Records Scheme

Healthcare software giant Epic Systems has filed a lawsuit against competitor health information network Health Gorilla and its clients for improperly accessing hundreds of thousands of patient records managed by the company. The lawsuit was filed on Tuesday morning in California and accused Health Gorilla of fraud and breach of...
Kennedy's HHS Unilaterally Alters Recommended Childhood Vaccine Schedule National News

Kennedy's HHS Unilaterally Alters Recommended Childhood Vaccine Schedule

The Centers for Disease Control and Prevention (CDC) has updated the childhood immunization schedule to reduce the number of diseases prevented by routine vaccinations from 17 to 11. The announcement was made on Monday and signals a major shift in federal vaccination policy guided by Health and Human Services (HHS) Secretary Robert F....
ACA Enrollment Down Nationally Following Expiration of Enhanced Premium Subsidies Arizona News

ACA Enrollment Down Nationally Following Expiration of Enhanced Premium Subsidies

January 15 is the last day to enroll in a health plan offered through the Affordable Care Act (ACA) Marketplace, and preliminary numbers show enrollment has dropped substantially year-over-year. In a fact sheet published on Monday, the Centers for Medicare and Medicaid Services boasted 22.8 million consumers enrolled in 2026 coverage...
Hertel Report Stories
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Achieving the Quintuple Aim With a Robust, Efficient Primary Care System – by MedWest

CALENDAR
Feb
4
Wed
2026
12:00 pm AZ/NM MGMA How to Negotiate Bett... @ Webinar
AZ/NM MGMA How to Negotiate Bett... @ Webinar
Feb 4 @ 12:00 pm – 1:00 pm
AZ/NM MGMA How to Negotiate Better Contract Rates @ Webinar
How to Negotiate Better Contract Rates Feb 4, 2026 12:00 PM (AZ) REGISTER Description Webinar attendees will review and discuss: – Effective strategies for negotiating payer contracts and avoiding common setbacks. – Tactics payers use[...]
12:00 pm AZ/NM MGMA Webinar: How to Negot... @ Zoom
AZ/NM MGMA Webinar: How to Negot... @ Zoom
Feb 4 @ 12:00 pm – 1:00 pm
AZ/NM MGMA Webinar: How to Negotiate Better Contract Rates @ Zoom
Feb 4, 2026 12:00 PM in Arizona REGISTER Description Webinar attendees will review and discuss: – Effective strategies for negotiating payer contracts and avoiding common setbacks. – Tactics payers use during negotiations. – Ways to leverage your[...]
Feb
12
Thu
2026
10:00 am AZ/NM MGMA Webinar: Physician Bu... @ Zoom
AZ/NM MGMA Webinar: Physician Bu... @ Zoom
Feb 12 @ 10:00 am – 11:00 am
AZ/NM MGMA Webinar: Physician Burnout: It's Not a Personal Failing, It's a Systemic Crisis @ Zoom
Feb 12, 2026 10:00 AM in Arizona REGISTER Description: Session Description Medical practices are facing tighter margins, shifting payer rules, and smaller billing teams. This in-person event will break down the most common and costly denial trends[...]
Feb
13
Fri
2026
7:30 am Save the Date! 2026 Winter State... @ Orange Tree Golf Resort
Save the Date! 2026 Winter State... @ Orange Tree Golf Resort
Feb 13 @ 7:30 am – 10:30 am
Save the Date! 2026 Winter State of the State @ Orange Tree Golf Resort
Join us for The Hertel Report’s Winter State of the State on Friday, February 13, 2026, featuring our bi-annual Arizona healthcare market update hosted and moderated by Publisher Jim Hammond. The Hertel Report’s 2026 Winter[...]
Feb
17
Tue
2026
9:30 am Arizona Rural & Public Health Po... @ Virginia C Piper Auditorium
Arizona Rural & Public Health Po... @ Virginia C Piper Auditorium
Feb 17 @ 9:30 am – 6:00 pm
Arizona Rural & Public Health Policy Forum 2026 @ Virginia C Piper Auditorium
Overview Join us for this year’s in-person event! Each year the Forum focuses on issues of the day that are affecting the health of rural Arizonans. The Arizona Rural & Public Health Policy Forum is[...]
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