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8 Arizona hospitals are at risk of closure or reduced services due to Medicaid cuts, report says

A beige three-story hospital showing the main entrance
Jean Clare Sarmiento
/
KJZZ
HonorHealth Tempe Medical Center on April 22, 2026.

A report from a consumer advocacy organization warns that hundreds of hospitals across the country are at risk of closure or reduced services — including eight in Arizona.

A prominent teaching hospital in Phoenix, as well as the closest hospital to Arizona State University’s Tempe campus are two on the list.

The Public Citizen report says the One Big Beautiful Bill Act — which is slashing billions in federal funds for Medicaid and other programs over the next decade — is partly to blame.

The report determined an at-risk hospital based on two-years of net profit, plus the percentage of the hospital’s payer mix that’s dependent on Medicaid and other government programs.

Eight hospitals in Arizona were identified, six of which are in the Phoenix metro area.

One of the eight Arizona hospitals on the list is Valleywise Health Medical Center. The teaching hospital says it’s closely monitoring potential impact and proactively planning, though it did not get into specifics.

St Luke’s Hospital in Tempe was also named. In a statement, the facility said it had recently taken over hospitals in bankruptcy, and while federal policy will have an impact, the hospital plans to navigate.

Arizona hospitals on the list

  • Carondelet St. Mary's Hospital in Tucson
  • Banner Goldfield Medical Center in Apache Junction
  • Mountain Vista Medical Center (HonorHealth Four Peaks Medical Center) in Mesa
  • Arizona General Hospital in Mesa
  • Tempe St. Luke's Hospital (HonorHealth Tempe Medical Center) in Tempe
  • Valleywise Health Medical Center in Phoenix
  • Abrazo Central Campus in Phoenix
  • Exceptional Community Hospital in Bullhead City

Valleywise Health Medical Center statement

For nearly 150 years, Valleywise Health has served as Arizona's public teaching hospital and safety-net system, with a longstanding commitment to caring for all members of our community. That commitment is grounded in fiscal transparency and disciplined financial management.

We are closely monitoring the potential impacts of recent federal policy changes and are proactively planning so we can remain financially strong and able to deliver exceptional care without exception — every patient, every time.

Tempe St. Luke's Hospital (HonorHealth Tempe Medical Center) statement

Since welcoming these hospitals into the HonorHealth network in October 2024 from Steward Health, we’ve made significant investments to strengthen operations, care teams and services. Those investments have been focused on stabilizing facilities acquired out of bankruptcy and ensuring they can continue to meet the health care needs of the communities they serve.

Today, HonorHealth Four Peaks Medical Center, HonorHealth Tempe Medical Center and HonorHealth Florence Medical Center continue to care for patients across their regions, providing essential services and access to care close to home for patients and families who rely on them.

 Federal HR1 legislation will have an impact on access to care and on health systems. HonorHealth is carefully evaluating the effects of HR1 and is actively developing a plan. This work is centered on long-term sustainability, operational efficiency, and the ability to continue delivering high-quality care amid a changing policy and funding landscape.

HonorHealth remains committed to thoughtful planning, transparency, and working with community and policy leaders to navigate impacts and support the patients we serve.

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Jill Ryan joined KJZZ in 2020 as a morning reporter, and she is currently a field correspondent and Morning Edition producer.