ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House:  COM DPA 9-0-0-0


HB 2823: ambulance service; interfacility transfers

Sponsor:  Representative Weninger, LD 17

Caucus & COW

Overview

Creates a certificate of operation for non-emergency interfacility transfers.

History

The Director (Director) of the Department of Health Service (Department) must adopt rules to regulate the operation of ambulances and ambulance services which include, to regulate operating and response times of ambulances to meet the needs of the public and to ensure adequate service (A.R.S. § 36-2232).

In order to operate an ambulance service a person must apply for a certificate of necessity issued by the Department. A person must meet all of the following requirements for issuance:

a)    The ambulance service has a certificate of registration issued by the Department for at least one ambulance;

b)    The Director finds that public necessity requires the service, or any part of the service proposed by the applicant;

c)    The Director finds that the applicant is fit and proper to provide the service;

d)    The applicant has paid the appropriate fees; and

e)    The applicant has filed the necessary surety bond (A.R.S. § 36-2233).

Current statute defines ambulance as any publicly or privately owned surface, water or air vehicle, including a helicopter, that contains a stretcher and necessary medical equipment and supplies and that is especially designed and constructed or modified and equipped to be used, maintained or operated primarily for the transportation of individuals who are sick, injured or wounded or who require medical monitoring or aid (A.R.S. § 36-2201).

 Provisions

1.    Clarifies the rules adopted to regulate operating and response times of ambulance must meet or exceed the needs of the public or the sponsoring hospital system.

a)    Adds the rules adopted for certificated ambulance service operating under a certificate of operation must include uniform standards for its service area and medical considerations. (Sec. 2)

2.    Extends certain rules and requirements for ambulance services operating under a certificate of necessity to ambulance services operating under a certificate of operation. (Sec. 2)

3.    Allows the Director to inquire into the compliance of certification by the commission on accreditation of ambulance services. (Sec. 2)

4.    Instructs the Department to grant requests from an ambulance service to be part of the Phoenix Uniform Rate Group. (Sec. 2)

5.    Excludes a person wishing to operate interfacility transfers under a certificate of operation from the requirements for issuing a certificate of necessity. (Sec 3)

6.    Requires a person to obtain a certificate of operation to operate an ambulance service to provide interfacility transfers.

a)    Outlines the requirements for issuance. (Sec. 4)

7.    Requires a person that has obtained a certificate of operation to apply for a certificate of registration. (Sec. 4)

8.    Specifies the requirements for a certificate of operation does not apply to a person who holds a valid certificate of necessity that authorizes interfacility transport. (Sec. 4)

9.    Defines sponsorship. (Sec. 4)

10.  Exempts certificates of operation from public hearings and judicial review relating to rates, fares or charges, operating or response times. (Sec. 5)

11.  Allows the Director to determine the effects of rate changes on the general public in the area of service designated in a certificate of operation. (Sec. 5)

12.  Allows the Director to immediately suspend a certificate of registration, necessity or operation or any combination of the three without notice if the Director determines a potential threat to public health and safety. (Sec. 5)

13.  Specifies an initial certificate of operation be issued for three years.

a)    Allows the Director to evaluate the performance of the certificate holder after the first year.

b)    Stipulates the certificate holder must implement an improvement plan if determined that the performance is substandard. (Sec. 6)

14.  Mandates the certificate holder to demonstrate accreditation by the Commission on Accreditation of Ambulance Services prior to the expiration of the certificate of operation. (Sec. 6)

15.  Requires the Director to renew the certificate of operation for three years if certain criteria are met. (Sec. 6)

16.  Stipulates a certificate of operation will be renewed for a period of at least one year if the Director fails to act within 90 days after the expiration date.

a)    Extends the term to three years if it is determined that there is no cause for denying or renewing for a shorter term. (Sec. 6)

17.  Voids a certificate of operation if the hospital system sponsorship is terminated. (Sec. 6)

18.  Specifies a certificate of operation is not a franchise, may be revoked and does not confer a property right to its holder. (Sec. 7)

19.  Extends certain issuance requirements for a certificate of necessity to a certificate of operation. (Sec. 8)

20.  Establishes the following fees for a certificate of operation:

a)    Application, $100;

b)    Amend, transfer or renew, $50; and

c)    Issuance of an initial certification, $200.

21.  Clarifies written and signed statements of dissatisfaction pertaining to patient care, wait time for interfacility transfers, the customer, patient, hospital system or health care provider are deemed to have filed an inform complaint against the ambulance service. (Sec. 10)

22.  Extends certain civil penalties, suspensions, reinstatement, and legal name change requirements for a certificate of necessity to a certificate of operation. (Sec. 10, 11)

23.  Defines certificate of operation, hospital system, interfacility transfer and sponsoring hospital system. (Sec. 1)

24.  ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteMakes technical changes. (Sec. 1, 2, 5, 8, 9, 10 and 11)

Amendments

Committee on Commerce

1.    Deletes all references of certificate of operation.

2.    Removes the section of the bill which:

a)    Required the Director to adopt rules relating to response times of a certificate of operation;

b)    Permitted the Director to inquire into the compliance of certification by the commission on accreditation of ambulance services; and

c)    Required the Director to grant requests to be part of the Phoenix Uniform Rate Group.

3.    Requires the Department to establish an Interfacility Ambulance Service Demonstration Project (Project).

4.    Requires a person wishing to operate an ambulance service under the Project to apply to the Department to receive a demonstration permit (Permit).

5.    Applies the criteria for obtaining a certificate of operation to obtaining a Permit.

a)    Modifies the criteria.

6.    Instructs an applicant who has been awarded a Permit to apply for a certification of registration.

7.    Removes language indicating the certificate of operation applying to a person who holds a certificate of necessity.

8.    Specifies a person who holds a certificate of necessity does not qualify for the Project.

9.    Limits the service area of a Permit holder to a county with a population of more than 3 million persons.

10.  Sets the term for a Permit to 5 years.

11.  Instructs the Director to establish response times for a Permit holder that are consistent with certificate of necessity holders that perform interfacility transports in the same service area.

a)    Specifies the data to be collected by a third-party vendor and be used to validate response times for a Permit holder.

12.  Allows the Director to evaluate the performance of a Permit holder and implement an improvement plan if the performance is determined to be substandard.

13.  Instructs the Director to issue a certificate of necessity to a Permit holder who achieves specified criteria.

14.  Repeals the Project July 1, 2027.

 

 

 

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                        HB 2823

Initials PRB     Page 0 Caucus & COW

 

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