Phoenix, Arizona
REVISED
health care institutions;
licensure
Makes numerous changes to
the health care institution statutes and authorizes the Department of Health
Services (DHS) to use monies generated from fines levied against certain health
care institutions for the relocation of residents from closed facilities and to
maintain a facility pending closure or correct facility deficiencies.
DHS is responsible for
protecting the public’s health, safety and welfare through licensing and
regulating facilities that provide health care services. These duties are carried out by the Division
of Assurance and Licensure Services (ALS), which is responsible for providing
accurate and accessible information to the public regarding the quality of
facilities. Currently, DHS licenses
3,239 health care institutions, including assisted living facilities, behavioral
health facilities, child care facilities, long-term care facilities and medical
facilities.
In 1999, the Office of the
Auditor General (OAG), in a performance audit of ALS, recommended strengthening
DHS’ enforcement authority by increasing civil fine amounts and expanding the
use of civil fines against providers.
Additionally, the OAG recommended requiring all licensed health care
providers to post the availability of regulatory information and make this
information available in an area readily accessible to all consumers. S.B. 1311 implements the OAG recommendations
by increasing civil penalties for violations of regulations for health care
institutions and requiring institutions to post a notice identifying where
inspection reports are available for public review.
Additionally, DHS has the
statutory authority to pay for: relocation costs of nursing care institution
residents to other facilities, maintenance of operation of a facility pending
correction of the deficiencies or closure and reimbursement of residents for
personal monies lost at nursing care institutions (A.R.S. 36-431.02). The funds used to pay these costs come from
federally established civil fines levied against nursing care
institutions. Fines levied against
other health care institutions are established at the state level and are
transferred into the state general fund.
Currently, when a health care institution, other than a nursing care
institution, is closed, residents are relocated to other facilities, which
absorb the relocation costs. S.B. 1311
redirects fines levied against health care institutions, other than nursing
care institutions, from the state general fund to DHS to defray the costs
associated with relocating residents or patients of certain types of health
care institutions that are closed or pending closure.
According to DHS, the amount
of civil fines collected from health care institutions, excluding nursing care
institutions, during FY 1999-2000 was approximately $91,000. For the current fiscal year, DHS has
collected approximately $64,000 in civil fines from health care institutions,
excluding nursing care institutions.
1. Establishes the health care institution emergency revolving fund in DHS and authorizes DHS to use fund monies to transfer or relocate residents or patients from closing or closed facilities, run a facility pending closure or correct facility deficiencies.
2. Requires DHS to report the plan for use of the fund monies to the Joint Legislative Budget Committee (JLBC).
3. Specifies fund monies are exempt from lapsing and are continuously appropriated.
4. Defines “licensed capacity" as the total number of persons who are expected to stay in a health care institution for more than 24 hours and for whom the health care institution is authorized to provide services.
5. Specifies “licensed capacity” for a hospital only includes the beds specified on a hospital license.
6. Clarifies all fees collected from health care institutions are nonrefundable.
7. Clarifies fees are due for initial licensure and licensure renewal.
8. Exempts adult foster care residential settings and state agencies that operate a licensed health care institution from licensure fee requirements.
9. Requires a licensed health care institution to maintain DHS inspection reports at the institution and conspicuously post a notice identifying where the reports are available for review.
10. Stipulates inspection reports are subject to statutory confidentiality requirements relating to hospital and surgical center utilization reviews, peer reviews and patient treatment records and communications.
11. Outlines the criteria DHS must consider in determining a civil penalty against a health care institution.
12. Increases, from $300 to $500, the maximum civil penalty DHS may assess against a health care institution.
13. Makes numerous conforming and technical changes.
14. Provides for a general effective date.
Amendments Adopted by Committee
Modifies the definition of “licensed capacity.”
Amendments Adopted by Committee of the Whole
Requires DHS to report the plan for use of the fund monies to JLBC.
Senate Action
HEA 2/20/01 DPA 8-0-0-0
APPROP 3/6/01 DPA 10-0-2-0
3rd Read 3/20/01 30-0-0-0
Prepared by Senate Staff
March 21, 2001