The bill HB2346 proposes to amend existing Arizona law regarding the licensure of outpatient treatment centers (OTCs). Under current law, an OTC is exempt from Department of Health Services (DHS) licensure if it shares the same governing authority as a licensed hospital. The new bill changes this requirement to allow exemption if the OTC has the same direct or indirect owner as a licensed hospital, provided that the OTC notifies DHS of its decision to be exempt. This shift broadens the criteria for exemption and introduces new definitions for "direct owner" and "indirect owner," clarifying ownership interests in health care institutions.

Additionally, the bill mandates that each licensed hospital must maintain a current list of exempt OTCs with the DHS, and it establishes a temporary provision for OTCs licensed as of September 23, 2022, allowing them to remain licensed if they pay lapsed fees within 60 days of the bill's effective date. The bill also repeals the requirement for these OTCs to pay lapsed fees by January 1, 2025, if they do not notify DHS of their intent to be exempt. Overall, the bill aims to streamline the regulatory framework for outpatient treatment centers while ensuring oversight through required notifications and inspections when necessary.

Statutes affected:
Introduced Version: 36-401, 36-402, 36-422, 36-439, 36-405, 36-2939, 36-2907.06, 36-151, 36-551, 36-449.01, 36-448.01, 36-421, 36-425
House Engrossed Version: 36-401, 36-402, 36-422, 36-439, 36-405, 36-2939, 36-2907.06, 36-151, 36-551, 36-449.01, 36-448.01, 36-421, 36-425
Senate Engrossed Version: 36-401, 36-402, 36-422, 36-439, 36-405, 36-2939, 36-2907.06, 36-151, 36-551, 36-449.01, 36-448.01, 36-421, 36-425
Chaptered Version: 36-401, 36-402, 36-422, 36-439, 36-405, 36-2939, 36-2907.06, 36-151, 36-551, 36-449.01, 36-448.01, 36-421, 36-425