Federal Warnings Issued to Six Hospitals in Phoenix Over Price Transparency
By Matthew Holloway | July 25, 2026
In a recent report, six hospitals in the Phoenix area received federal warning notices related to compliance with hospital price transparency rules. The report was released by the healthcare watchdog group, Hospital Watch.
The hospitals highlighted in the report include Banner Gateway Medical Center, BH Newco Hospital LLC (operating as Via Linda Behavioral Hospital in Scottsdale), College Medical Center Phoenix, Phoenix Specialty Hospital, Quail Run Behavioral Health, and Valley Hospital. Most of these facilities are situated in Phoenix, with Banner Gateway located in Gilbert.
These six Arizona hospitals were part of a larger group—519 hospitals nationwide—identified by the Centers for Medicare and Medicaid Services (CMS) as not meeting transparency standards between April and early June. A national list obtained by the Associated Press shows that facilities in every state, except Alaska, received such notifications. Texas had the highest number of hospitals flagged, with 42, followed closely by California with 38 and Indiana with 34.
The letters sent by CMS include warnings and, in more serious cases, requests for formal corrective action plans. Hospitals failing to address these issues may incur significant penalties, potentially reaching up to $2 million annually, depending on their size.
“Patients shouldn’t have to guess what their hospital bills will be,” stated Adam Buckalew, a spokesperson for Hospital Watch. “Hospitals need to comply with the existing transparency rules to show they’re serious about making healthcare affordable. Many systems are still hiding prices, which leads to surprise bills for families.”
Enforced since January 1, 2021, federal hospital price transparency regulations require hospitals to provide a detailed file that includes their gross charges, discounted rates for cash payments, negotiated prices with different insurers, and the highest and lowest prices for services. Additionally, hospitals must display simplified pricing information for at least 300 services that can be scheduled in advance, or all such services if fewer than 300 are offered.
CMS holds the authority to issue warnings, enforce corrective action plans, impose fines, and publicly name hospitals that remain out of compliance.
While the list of hospitals mentioned does not specify the deficiencies at each facility, hospitals elsewhere have suggested that their notices were due to minor technical issues rather than missing pricing information. For example, the University of Texas MD Anderson Cancer Center clarified that its notice was related to a date formatting error, which has since been corrected.
A recent audit by the Department of Health and Human Services revealed that 37 out of 100 sampled hospitals did not meet one or more of the federal transparency requirements. The audit indicated that approximately 46% of the 5,879 hospitals covered by the rule were not fully compliant.
Hospital Watch emphasized the need for accessible pricing information, stating that without it, patients and families cannot compare costs before seeking care. The organization has also called for improved federal oversight of hospital mergers in the Phoenix market.
“The hospital landscape in Phoenix is dominated by a few large systems,” Buckalew added. “When hospitals merge and competition dwindles, patients are the ones who suffer. This leads to soaring prices and increased premiums, burdening families with unaffordable medical bills.”
According to a January report by the Arizona Health Care Cost Containment System (AHCCCS), Banner Health is the largest hospital system in Arizona, operating 18 hospitals, followed by Dignity Health and HonorHealth. Abrazo/Tenet is also among the 11 systems running at least three facilities in the state.
Hospital Watch pointed out that private insurers and patients often pay hospitals around three times what Medicare pays. A nationwide study by RAND Corporation found that in 2022, employers and insurers paid an average of 254% of Medicare rates for comparable services. Inpatient services averaged 254% of Medicare costs, while outpatient services averaged 279%.
Hospital industry representatives claim that these higher rates are essential to cover the costs that Medicare and Medicaid fees do not fully address. The American Hospital Association has stated that most hospitals comply with federal regulations and is advocating for clearer, more user-friendly rules for patients.
“True enforcement of hospital price transparency and tighter regulation of hospital mergers are necessary,” Buckalew stressed. “Transparency is vital for accountability. Patients and employers deserve clarity about their charges, the reasons behind high prices, and assurance that they are treated fairly.”
Founded in February as a project of Better Solutions for Healthcare, Hospital Watch promotes hospital price transparency, limits on fees, and increased oversight of hospital consolidation.
