Official Summary Text
SB1164 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY HOUSE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
S.B. 1164
ALTCS; providers; change of ownership
Purpose
Outlines change of ownership procedures for licensed skilled nursing
facilities and assisted living facilities to continue processing claims for
services rendered to Arizona Long-Term Care System (ALTCS) members.
Background
ALTCS provides long-term care services to
financially and medically eligible Arizona residents who have an age-related or
physical disability, or both, and who require nursing facility level of care or
have a developmental disability requiring skilled level of care. ALTCS manages
and delivers hospitalization, medical care, institutional services and home and
community-based services to eligible members, through the Arizona Health Care
Cost Containment System (AHCCCS), program contractors and providers, together
with federal participation under Title XIX of the Social Security Act. ALTCS
services are provided through program contractors that receive capitation
payments for each enrollee that they serve. ALTCS program contractors must
provide certain services to ALTCS members who are determined to need
institutional services, including: 1) nursing facility services, other than services
in an institution for tuberculosis or mental disease; 2) behavioral health services
that are not duplicative of prescribed long-term care services and that are
authorized by the program contractor through the long-term care case management
system; 3) hospice services; 4) case management services; 5) health and medical
services covered by AHCCCS; and 6) dental services(A.R.S. ��
36-2932
and
36-2939
).
A claim for an authorized service submitted by
a licensed skilled nursing facility, an assisted living ALTCS provider or a
home and community-based ALTCS provider that renders care to ALTCS members must
be adjudicated within 30 calendar days after receipt by the program contractor.
Any clean claim for an authorized service provider to a member that is not paid
within 30 calendar days after the claim is received accrues interest at the
rate of one percent per month from the date the claim is submitted. The interest
is prorated on a daily basis and must be paid by the program coordinator at the
time the clean claim is submitted (
A.R.S.
� 36-2943
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Requires AHCCCS and its program contractors, when there is a change of
ownership of a licensed skilled nursing facility or an assisted living facility
that is not in suspension, termination or payment hold and has an active
provider enrollment with AHCCCS, and upon the facility owner's request, to
continue to process claims for services rendered to ALTCS members and make
required payments under the previous owner's AHCCCS number and subcontractors
until the owner's system enrollment and contracting process is completed.
2.
Requires the current owner or new owner to provide written notice to
AHCCCS at least 60 days before an anticipated change of ownership and respond
to all provider enrollment requests within 10 business days.
3.
Makes technical changes.
4.
Becomes effective on the general effective date.
Amendments Adopted by the
House of Representatives
1.
Specifies that the change of ownership procedures apply to a licensed
skilled nursing facility or an assisted living facility that is not in
suspension, termination or payment hold and has an active provider enrollment
with AHCCCS.
2.
Clarifies that the continued payments in accordance with the change of
ownership procedures are made under the previous owner's AHCCCS number, rather
than certification number, until the new owner's system enrollment and
contracting process is complete.
3.
Requires the current owner or new owner to provide written notice to
AHCCCS at least 60 days before an anticipated change of ownership and respond
to all provider enrollment requests within 10 business days.
Senate Action
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House
Action
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Prepared by Senate Research
April 16, 2026
JT/ci
Current Bill Text
Read the full stored bill text
Chapter 0150 - 572R - H Ver of SB1164
House Engrossed
Senate Bill
ALTCS; providers;
change of ownership
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 150
SENATE BILL 1164
AN
ACT
Amending section 36-2943, Arizona
Revised Statutes; relating to the Arizona long-term care system.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 36-2943, Arizona Revised
Statutes, is amended to read:
START_STATUTE
36-2943.
Provider
subcontracts; hospital reimbursement; change of ownership
A. Subcontracts for services rendered by providers
pursuant to section 36-2940 shall be awarded through competitive
statewide proposals in as nearly the same manner as that provided in section 41-2534. If
there is not a sufficient number of qualified proposals, a subcontract may be
negotiated with a provider and shall be awarded pursuant to section 41-2536. In
order to deliver covered services to members
who are
enrolled
or expected to be enrolled in the system within a county, the program
contractor may negotiate and award without bid a provider subcontract if during
the contract year there is an insufficient number of subcontracts awarded to
providers. The term of the subcontract shall not extend beyond the
next bid and subcontract award process as provided in this section, and the
subcontract shall be at rates no greater than the weighted average rates for
the appropriate level of care paid to similar providers in the same
county. This section does not allow a program contractor to
forego
forgo
the competitive bid process
pursuant to section 41-2534 unless there is an unanticipated increase in
members enrolled in the system or a decrease in available beds brought about by
the closure of a facility operated by a provider that is unable to be absorbed
by current contracting providers located in the same general
area. Before soliciting subcontracts without the competitive bid
process, the program contractor shall receive approval from the director.
B. Hospitals that render care to members shall be
paid by the program contractor as prescribed in section 36-2903.01
,
or
such
at a
lower
rate as may be negotiated by the program contractor.
C. The director may ensure through the subcontracts
pursuant to subsection A of this section that at least ten
per
cent
percent
of the members are provided services
pursuant to this article on a capitation basis.
D. A claim for an authorized service submitted by a
licensed skilled nursing facility, an assisted living Arizona long-term care
system provider or a home and community based Arizona long-term care system
provider that renders care to members pursuant to this article shall be
adjudicated within thirty calendar days after receipt by the program
contractor. Any clean claim for an authorized service provided to a
member that is not paid within thirty calendar days after the claim is received
accrues interest at the rate of one
per cent
percent
per month from the date the claim is submitted. The
interest is prorated on a daily basis and must be paid by the program
contractor at the time the clean claim is paid.
E. Notwithstanding any other
provision of this chapter to the contrary, when there is a change of ownership
of a licensed skilled nursing facility or an assisted living facility that is
NOT IN A SUSPENSION, TERMINATION OR PAYMENT HOLD, THAT HAS AN ACTIVE
PROVIDER ENROLLMENT WITH THE ADMINISTRATION and that continues to provide
services under this article, at the new owner's request the administration and
its program contractors shall continue to process claims for SERVICEs rendered
to members and make payments in accordance with subsection D of this section
under the previous owner's
aRIZONA HEALTH CARE COST
CONTAINMENT SYSTEM number and subcontracts until the new owner's system
enrollment and contracting process is completed.�
tHE
CURRENT OWNER OR NEW OWNER SHALL PROVIDE WRITTEN NOTICE TO THE ADMINISTRATION
AT LEAST SIXTY DAYS BEFORE AN ANTICIPATED CHANGE OF OWNERSHIP and respond to
all provider enrollment requests within ten business days.
END_STATUTE
APPROVED BY THE GOVERNOR JUNE 19, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.