Jewish Family and Children’s Service Announces Organizational Restructuring Amid Ongoing AHCCCS Funding Challenges
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Phoenix, AZ — May 11, 2026 — After months of exploring alternative solutions, advocating for AHCCCS (Arizona Health Care Cost Containment System) reimbursement reform, and working to stabilize operations amid rising healthcare costs, Jewish Family and Children’s Service (JFCS) has announced an organizational restructuring that includes workforce reductions and programmatic changes across the organization.
These extremely difficult decisions come as behavioral health and healthcare providers across Arizona continue to face mounting financial pressures caused by AHCCCS reimbursement rates that do not reflect the true cost of delivering care.
For more than 91 years, JFCS has served individuals and families throughout the Greater Phoenix community, providing behavioral health services, older adult programs, Jewish community services, youth development initiatives, and support for vulnerable populations. Despite extensive efforts to identify sustainable alternatives, the organization must now realign operations to preserve long-term stability and continue serving the community.
Importantly, JFCS’s Jewish Services programs will remain intact and continue serving the community.
“These decisions were extraordinarily difficult and were not made lightly,” said Dr. Lorrie Henderson, President and CEO of JFCS. “For months, we have worked diligently to identify other options while also sounding the alarm about the growing AHCCCS reimbursement crisis affecting providers across Arizona. Unfortunately, the gap between the cost of care and reimbursement levels has continued to widen.”
Behavioral health and healthcare providers statewide have experienced dramatic increases in labor, facility, insurance, and compliance costs in recent years, while AHCCCS reimbursement increases have failed to keep pace. JFCS leaders say the financial strain facing nonprofit providers has become increasingly unsustainable.
“Our priority remains continuing our mission and preserving the services that are most vital to the individuals and families who depend on us,” Henderson added. “While this restructuring is difficult, we remain deeply committed to the community we have served for more than nine decades.”
JFCS leadership also emphasized that the organization will continue advocating for sustainable AHCCCS funding and increased awareness surrounding the growing challenges facing Arizona’s behavioral health and healthcare systems.
About Jewish Family and Children’s Service (JFCS)
Jewish Family and Children’s Service has served the Greater Phoenix community for more than 91 years, providing behavioral health care, social services, older adult programs, youth development, Jewish community services, and support for individuals and families facing life’s challenges