Description
The Hertel Report’s 2026 Arizona Hospitals & Health Systems Data Edition, published in May 2026, examines the financial performance, strategic priorities and operational pressures shaping Arizona healthcare, with reporting on hospital margins, payer mix, Medicaid exposure, system expansion, leadership transitions and the growing debate over hospital pricing and reimbursement.
Arizona hospitals entered 2026 navigating a collision of rising costs, Medicaid uncertainty, workforce shortages and growing demand for care, even as many of the state’s largest health systems continued expanding hospitals, specialty services and outpatient access points across the market.
Editor’s Note: Corrected on May 27: Banner Health has 50% controlling interest in Banner|Aetna, not 51%, as previously reported. We regret the error.
What’s Inside:
- Arizona hospital system profiles, including Banner Health, HonorHealth, Dignity Health, Phoenix Children’s, Valleywise Health, Mayo Clinic Arizona and Northern Arizona Healthcare
- Hospital operating margins, uncompensated care and statewide AHCCCS financial data
- Analysis of hospital pricing pressure, Medicaid financing changes and the impact of the One Big Beautiful Bill Act on Arizona hospitals
- Arizona payer mix trends and Medicaid utilization across major health systems
- Banner Health’s continued expansion, insurance operations and academic partnerships
- HonorHealth’s Steward acquisition integration, ASU medical school partnership and access expansion strategy
- Phoenix Children’s expansion into the West Valley, physician integration strategy and specialty growth
- Valleywise Health’s Proposition 409 expansion plans, public hospital financing pressures and behavioral health investments
- Mayo Clinic Arizona’s nearly $1.9 billion Phoenix campus expansion and innovation strategy
- Northern Arizona Healthcare’s hospital expansion challenges, Medicaid exposure and rural healthcare pressures
- Arizona critical access hospital performance and national hospital financial benchmarking data
- Executive leadership transitions across Arizona’s largest health systems





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