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January 11, 2021

State Medicaid Agency Consolidates Downtown Phoenix Office Space to Save $1.2 Million Annually

During the COVID-19 pandemic, AHCCCS moved more than 60 percent of its workforce to permanent “virtual offices” and reduced physical office space in Phoenix by half.

In February 2021, AHCCCS will reduce its Phoenix office space by half, saving $1.2 million annually.

Since the start of the COVID-19 public health emergency, the majority of AHCCCS employees have been working remotely. Once the public health emergency ends and in-office work environments are again safe, more than 60 percent of employees in the Central Phoenix office will continue to work from "virtual offices," thus allowing the agency to consolidate its physical footprint.

AHCCCS uses the Arizona Management System framework to carefully monitor productivity levels throughout all areas of its business processes. Metrics indicate that in many areas across the agency productivity performance has improved following the transition to virtual offices.

“With the Arizona Management System, our leadership team has been able to see, in near real-time, productivity changes during the transition to work at home,” said Jami Snyder, director of AHCCCS. “Since March, AHCCCS teams have found new ways to work, relying less on printing and storing physical paper, moving functions into an online environment, and eliminating inefficiencies that had become an ingrained part of a physical office space culture.”

Within Arizona state government agencies, AHCCCS has been recognized for leading efforts to modernize its work environments. Prior to the public health emergency, 29 percent of AHCCCS employees worked from virtual office settings, and more than 50 percent participated in telework at least one day per week. Because of these flexible work environments, AHCCCS employees who drive less often contribute to improved air quality and report increased job satisfaction, increased ability to balance work and home life, and a higher quality of work produced. In addition, the agency sees a significantly lower turnover rate among employees who work remotely, which contributes to a more seasoned workforce that is better able to serve the state’s citizens.

The two AHCCCS offices at 701 and 801 E. Jefferson Street will be consolidated into the 801 E. Jefferson Street building. Visitors will be directed to check in at the security desk on the ground floor of 801 E. Jefferson Street, where all business functions will be conducted. Additionally, the AHCCCS ALTCS office in Yuma will consolidate into the Department of Economic Security Multi-Service Center at 1800 E. Palo Verde Street, Yuma.

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