They're will be lawsuits challenging it but it's a done deal for now.
Half of the budget cuts, or $510 million, come from the Arizona Health Care Cost Containment System, primarily by freezing enrollment of childless adults in the Medicaid program.
Hospitals have been bracing for the cuts while fiercely lobbying for an alternative plan that would tax their revenues and draw down more federal funding.
Betsey Bayless, CEO for Maricopa Integrated Health Systems, said eliminating health care for most of the childless-adult population will be devastating for Maricopa Medical Center and other safety-net hospitals.
"There's no question that this budget is going to hurt the health-care industry very badly," she said.