ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: HHS DPA 6-0-1-0 | Third Read 29-0-1-0

SB 1162: health care institutions; licensing; compliance

Sponsor: Senator Angius, LD 30

Committee on Health & Human Services

Overview

Directs the Department of Health Services (DHS) and the Arizona Health Care Cost Containment System (AHCCCS) to coordinate review monitoring and compliance functions to identify areas of overlap related to health care institution licensing standards.

History

Health care institution means every place, institution, building or agency, whether organized for profit or not, that provides facilities with medical services, nursing services, behavioral health services, health screening services, other health-related services, supervisory care services, personal care services or directed care services and includes home health agencies, outdoor behavioral health care programs and hospice service agencies (A.R.S. § 36-401).

DHS is responsible for licensing and overseeing all health care institutions in Arizona, including enforcing applicable statutes, rules and regulations. DHS may review and approve facility plans and specifications, examine books and records and conduct inspections and investigations to ensure compliance with licensing standards. DHS may also develop manuals and guidance for health care institutions and the general public (A.R.S. § 36-406).

AHCCCS is Arizona’s Medicaid agency and provides qualifying residents with access to health care programs. AHCCCS contracts with health care providers to deliver medically necessary services to eligible members and may establish eligibility and enrollment procedures and implement systems to address fraud prevention, quality assurance and contractor compliance (A.R.S. § 36-2903).

Provisions

1. Requires DHS to license and monitor the operation of health care institutions to ensure compliance with all applicable laws and regulations. (Sec. 1)

2. Requires DHS and AHCCCS to coordinate review monitoring and compliance functions to identify areas of overlap related to health care institution licensing standards. (Sec. 1)

3. Specifies that the health care institution licensing standards review must include, at a minimum:

a. licensing, certification and enrollment requirements;

b. on-site surveys, inspections, audits and other compliance activities;

c. data collection and reporting requirements; and

d. corrective action and enforcement processes applicable to health care institutions. (Sec. 1)

4. Requires DHS and AHCCCS to:

a. identify opportunities to eliminate or reduce duplicative, redundant or inconsistent requirements while maintaining patient safety and appropriate regulatory oversight; and

b. coordinate or align policies, procedures and operational practices to minimize administrative burdens on health care institutions. (Sec. 1)

5. Clarifies that the review does not require any action inconsistent with federal Medicaid conditions of participation, conditions of payment or other applicable federal requirements. (Sec. 1)

6. Directs DHS, by December 31, 2026, and October 31 every four years thereafter, to submit a written report to the House of Representatives and the Senate Health and Human Services committees, or their successor committees, that:

a. summarizes the findings and recommendations of the review;

b. identifies areas of duplication or overlap; and

c. includes recommendations for statutory, regulatory or administrative changes. (Sec. 1)

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g. Initials AG/LK SB 1162

h. 3/9/2026 Page 0 Health & Human Services

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