The proposed bill would amend current statutes regarding the licensure and regulation of health care institutions in Arizona. It would allow the Department of Health Services (DHS) to deny applications for licensure or changes in ownership based on a broader range of criteria, including the licensing history of anyone in a business relationship with the applicant, such as stockholders and controlling persons. Specifically, the bill introduces new provisions that would enable DHS to deny licensure if the applicant or associated individuals have had licenses denied, revoked, or suspended, or if they have a history of serious violations that posed risks to patient safety.

Additionally, the bill establishes new requirements for complaint investigations and the informal dispute resolution process. It mandates that DHS notify licensees of the general nature of complaints while protecting complainant confidentiality, prohibits the investigation of violations occurring more than 12 months prior to a complaint, and requires detailed documentation of deficiencies in statements issued after inspections. Licensees disputing deficiencies must provide evidence of compliance and request corrections within a specified timeframe, and DHS is required to review this information and issue a written decision. If changes are made to the deficiencies during the dispute process, an amended statement must be issued, potentially including a deficiency-free statement.

Statutes affected:
Introduced Version: 36-420.05, 36-424.04, 36-424.05