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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
administrative deficiencies; cure period
Purpose
Requires the Department of Health Services (DHS), Arizona Health Care Cost Containment (AHCCCS) and Department of Economic Security (DES) to allow licensed or contracted facilities an opportunity to cure administrative deficiencies before taking disciplinary or enforcement action.
Background
DHS serves as the agency responsible for licensing and oversight of all health care institutions in Arizona, including enforcement of statutes, rules and regulations governing health care institutions. DHS may review and approve plans and specifications, access books and records and conduct inspections and investigations to determine compliance with licensing standards (A.R.S. § 36-406).
AHCCCS serves as Arizona's Medicaid agency, which offers qualifying Arizona residents access to healthcare programs. AHCCCS contracts with health professionals to provide medically necessary health and medical services to eligible members and may establish eligibility and enrollment processes and implement systems to ensure the quality of care delivered by the system (A.R.S. § 36-2903).
DES is responsible for administering programs that provide social services, behavioral health services, developmental disability services and economic assistance to eligible individuals and families in Arizona. DES may adopt rules, make contracts and incur obligations necessary to administer DES programs and carry out its duties (A.R.S. 41-1954).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Stipulates that an agency may only take disciplinary or enforcement action against a contracted or licensed facility identified as having only administrative deficiencies if the agency grants the facility 72 hours to cure the deficiencies.
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.
3. Defines agency as DHS, AHCCCS and DES
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Removes the outright prohibition on taking disciplinary or enforcement action against a facility identified as having only administrative deficiencies and allows disciplinary or enforcement action by an agency after the required 72-hour cure period.
2. Defines administrative deficiency.
3. Makes conforming changes.
Senate Action
HHS 1/28/26 DPA 5-2-0
Prepared by Senate Research
January 29, 2026
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