Arizona’s Behavioral Health Hospitals Struggle with Soaring Costs of Uncompensated Care

A recent state report reveals alarming financial struggles faced by behavioral health hospitals in Arizona. While other hospitals are seeing increased profits, those dedicated to mental health care are experiencing a significant decline.

Data indicates that these hospitals are shouldering nearly double the amount of uncompensated medical care compared to last year, putting immense pressure on an already strained system. Advocates, like Deborah Geesling, emphasize that accessing care for those with mental illnesses in Arizona is fraught with challenges.

“The process is incredibly difficult, especially given the shortage of beds,” Geesling stated, reflecting on her experiences as a mother of a son with serious mental health issues. “Once a patient gets a bed, they often aren’t kept long enough.” This highlights a critical gap in supportive care.

Ann-Marie Alameddin, President and CEO of the Arizona Hospital and Healthcare Association, agrees that the financial health of these facilities is concerning. Behavioral health hospitals are reported to have an operating margin of less than one percent, far below the average six percent seen across other hospitals in the state.

“The behavioral health care system in Arizona is fragile right now,” Alameddin asserted. “It’s indicative of the larger issues facing our patient population, which is also vulnerable.” The challenges have worsened since the conclusion of the COVID-19 public health emergency, which led to hundreds of thousands of Arizonans losing Medicaid coverage.

To remedy these systemic issues, Alameddin calls for strengthening the infrastructure to ensure patients have access to affordable healthcare. “Addressing uncompensated core care and increasing insurance accessibility is critical,” she said.

Geelsing believes that without substantial changes, many people may fall through the cracks of the system. “There are numerous barriers that complicate access, leading to quick transitions of patients that may ultimately leave them without support,” she warned. “If they end up on the streets, the system tends to shrug it off as just another failure.”