(C) Arizona Mirror
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State budget invests in Tribal health care through traditional healing, dialysis center [1]
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Date: 2025-07-17
The new state budget supports Tribal Nations in Arizona in two main ways: first, by giving Indigenous peoples increased access to traditional healing practices from specific health providers, and second, through secured funding for a new dialysis center on the Navajo Nation.
The Arizona House of Democrats called the newly signed bipartisan state budget “one of Arizona’s largest-ever investments in Indigenous Tribal healthcare.”
The budget utilizes $100,000 from the state to secure more than $222 million in federal matching funds to support culturally relevant traditional healing practices, and it allocates $3 million for a dialysis center at Sage Memorial Hospital on the Navajo Nation.
Gov. Katie Hobbs signed the budget at the end of June and held a bill signing ceremony in July, where many tribal leaders were in attendance, including Rep. Mae Peshlakai (D-Cameron).
Peshlakai said she is proud to have fought for the most significant investment in traditional healing and Tribal healthcare she has seen in her lifetime.
“This budget shows care, concern, respect, and resources for our people,” she added.
Traditional Healing Services
Offering more access to traditional healing practices through the state’s Medicaid program is a significant win for individuals seeking this service through the Indian Health Service or a Tribally operated health facility.
The Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid program, provides healthcare coverage for about 2 million residents in Arizona, with over 167,000 of them being Native American, according to AHCCCS data.
After about a decade of work, AHCCCS received approval in October from the Centers for Medicare and Medicaid Services (CMS) to cover traditional healing services provided through the Indian Health Service (IHS) and tribally operated health facilities in Arizona.
Arizona is one of only four states that have received federal approval to cover traditional healing practices as a Medicaid benefit. The other states are Oregon, California and New Mexico.
Indigenous traditional healing is a comprehensive medical system encompassing a range of holistic treatments used by Indigenous healers to treat various acute and chronic conditions, as well as promote health and well-being, according to the National Institutes of Health/National Center for Complementary and Alternative Medicine (NCCAM).
NATIVE HEALTH Chief Executive Officer Walter Murillo said it took a great deal of collaborative effort from tribal health organizations, tribal communities and tribal leaders across Arizona to bring to the forefront the importance of including traditional healing practices as a Medicaid benefit in the state.
Murillo said that Medicaid should reimburse for it because it is part of the healing process in Indigenous communities and many Native health care facilities were already providing it.
Traditional healing practices vary across Tribal Nations, but some standard practices include sweat lodges, prayers, talking circles, and ceremonial rituals.
Funding for traditional healing services provided by the Indian Health Service or Tribally operated health care facilities will be 100% reimbursed by the federal government.
The state would need to pay for reimbursements involving non-Native family members of Indigenous people covered by Medicaid who receive their healthcare from Indigenous providers.
Although traditional healing practices are covered as a Medicaid benefit, a gap remains in the service.
Urban Indian Health Clinics, such as NATIVE HEALTH or Native American Connections, which provide traditional healing practices for Indigenous patients, do not qualify for the reimbursement.
Murillo said that urban Native health care facilities were initially included in the initiative to get reimbursement for traditional healing through Medicaid; however, over time, the policy language changed, and they were removed.
“We can provide the service like we always have, we just won’t be reimbursed for it,” Murillo said, unless the patient is referred to their facility by the Indian Health Service or a Tribally operated facility.
“The patients that choose us as their primary care outlet still don’t have direct access to reimbursable,” he said.
About half of their patients are Native, Murillo said, and they estimate that up to 10% of them utilize the traditional healing services that NATIVE HEALTH provides.
Murillo said they hope to work with legislators in the future to get “this gap covered.”
Navajo Nation Praises Dialysis Center Funding
Navajo Nation leaders praised Hobbs and state legislators for approving the critical funding needed to establish the dialysis center at Sage Memorial Hospital.
“This represents a vital step toward expanding healthcare access across the Navajo Nation and addressing the urgent medical needs of our Navajo people who often travel hours to receive dialysis treatment,” Navajo Nation Council Speaker Curley said in a statement.
Navajo patients often have to travel long distances several times a week for their dialysis treatments, Curley said, which can impose a significant physical, emotional, and financial burden on patients and their families.
“I’m thrilled to support expanded access to health care for the Navajo Nation with the creation of a new $3 million dialysis center,” Hobbs said in a press release.
The development of a local dialysis center in Ganado, Arizona, will ease some of the hardships many Navajo families face by providing them with accessible and timely care.
The Navajo Nation Council has said that a new facility in the Ganado area will reduce travel times, improve health outcomes, and enhance the overall quality of life for Navajo patients living with kidney conditions.
Sage Memorial Hospital CEO Melinda White expressed gratitude to Hobbs and legislative partners for ensuring that “life-saving dialysis care is accessible to the members of the Navajo Nation.”
“The funding included in the bipartisan state budget reflects Arizona’s commitment to equitable healthcare across our communities and will be effectively used to serve the needs of our community,” White said in a statement.
Sage Memorial Hospital currently serves a population of about 11,000 individuals across eight Navajo communities, including Ganado, Steamboat, Klagetoh, Wide Ruins, Greasewood Springs, Cornfields, Kinlichee, and Nazlini.
Dr. Kenneth Anaeme, chief medical officer at Sage Memorial Hospital, said that there is a significant need for improved local dialysis care.
Within Apache County, there are 324 active End-Stage Renal Disease (ESRD) patients, while Navajo County accounts for 400, totaling 724 individuals in need of dialysis treatment services, according to the hospital.
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https://azmirror.com/2025/07/17/state-budget-invests-in-tribal-health-care-through-traditional-healing-dialysis-center/
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