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

House: HHS DP 12-0-0-0

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

SB 1233: administrative deficiencies; cure period

Sponsor: Senator Werner, LD 4

House Engrossed

Overview

Allows 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 or enforcement action against a contracted or licensed facility if identified as having only administrative deficiencies and the agency grants the facility 72 hours to cure the 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.   Specifies that DHS, AHCCCS or DES may only take disciplinary or enforcement action against a contracted or licensed facility if identified as having only administrative deficiencies and the agency grants the facility 72 hours to cure the deficiencies. (Sec. 1)

2.   Defines administrative deficiency as a violation that does not impact a patient or resident physically or psychosocially and that has no potential to physically or psychosocially harm the patient or resident. (Sec. 1)

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

 

 

 

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Initials AG/IG                       SB 1233

5/12/2026        Page 0 House Engrossed

 

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