ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: HHS DPA 5-2-0-0 |Third Read 19-7-4-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


SB 1233: administrative deficiencies; cure period

Sponsor: Senator Werner, LD 4

Committee on Health & Human Services

Overview

Permits the Department of Health Services (DHS), the Arizona Health Care Cost Containment System (AHCCCS) or the Department of Economic Security (DES) to take disciplinary action against a facility contracted with or licensed by the agency if any administrative deficiencies are identified in the facility and if the agency has allowed the facility 72 hours to cure identified deficiencies.

History

AHCCCS is Arizona’s Medicaid agency and provides qualifying residents with access to health care programs through contracts with health care providers. AHCCCS may implement systems to address fraud prevention, quality assurance and contractor compliance. Current AHCCCS guidelines allow AHCCCS to impose an administrative action upon a contractor that fails to demonstrate compliance with contractual requirements. Administrative actions may include issuance of any or all of the following: 1) a notice of concern; 2) a notice to cure (NTC); 3) a mandate for a corrective action plan (CAP); and 4) sanctions (AHCCCS) (A.R.S. § 36-2903).

DHS is responsible for licensing and overseeing all health care institutions in Arizona, including enforcing applicable statutes, rules and regulations. DHS may conduct inspections and investigations of health care institutions to ensure compliance with licensing standards and may develop guidelines for health care institutions and the general public (A.R.S. § 36-406).

Provisions

1.   Allows an agency to take disciplinary or enforcement action against a facility that the agency either contracts with or licenses if only an administrative deficiency or deficiencies are identified. (Sec. 1)

2.   Stipulates that the agency must allow the facility 72 hours to cure the identified administrative deficiency or deficiencies before the agency takes any action. (Sec. 1)

3.   Specifies that agency means DHS, AHCCCS or DES. (Sec. 1)

4.   Defines administrative deficiency. (Sec. 1)

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8.   Initials AG/IG                 SB 1233

9.   3/17/2026  Page 0 Health & Human Services

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