Official Summary Text
SB1169 - 572R - Senate Fact Sheet
Assigned to
HHS
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
S.B. 1169
appropriations;
graduate medical education program
Purpose
Appropriates $10,000,000 from the state General Fund (state GF) and
$18,768,700 in Medicaid Expenditure Authority in FY 2027 to the Arizona Health
Care Cost Containment System (AHCCCS) for the direct and indirect costs of
graduate medical education (GME) and to fund the development of a new residency
program.
Background
GME
means a program, including an approved fellowship, that
prepares a physician for the independent practice of medicine by providing
didactic and clinical education in a medical discipline to a medical student
who has completed a recognized undergraduate medical education program (
A.R.S.
� 36-2901
).
The AHCCCS GME Program reimburses hospitals with GME programs for the
additional costs of treating members with graduate medical students. In
addition to state GF monies, local, county and tribal governments, as well as
public universities, may provide state match to a recipient of the entity's
choice. Monies allocated by the state GF support GME payments to hospitals
located in health professional shortage areas. GME funds are distributed by
AHCCCS to hospitals that provide training and education for medical school
graduates. This training includes internships, residencies and fellowships. GME
funds are either designated to cover direct medical education expenses or
indirect medical education expenses (
AHCCCS
;
JLBC
).
S.B. 1169 appropriates $10,000,000 from the state GF in FY 2027 to
AHCCCS.
Provisions
1.
Appropriates
$10,000,000 from the state GF and $18,768,700 in Medicaid Expenditure Authority
in FY 2027 to AHCCCS for GME programs to address the Arizona physician
shortage.
2.
Allows
appropriated monies to be used for direct and indirect costs of GME and to fund
the development of a new residency program.
3.
Specifies
that the appropriation may supplement, but not supplant, voluntary payments by
political subdivisions to hospitals that operate a GME program.
4.
Exempts
the appropriations from lapsing.
5.
Becomes
effective on the general effective date.
Prepared by Senate Research
January 22, 2026
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Current Bill Text
Read the full stored bill text
SB1169 - 572R - S Ver
Senate Engrossed
appropriations;
graduate medical education program
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1169
AN
ACT
appropriating monies to the Arizona
health care cost containment system administration.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1.
Appropriations;
Arizona health care cost containment system administration; graduate medical
education; exemption
A. In addition to any other
appropriations made in fiscal year 2026-2027, the sum of $10,000,000 from
the state general fund and $18,768,700 in expenditure authority are
appropriated in fiscal year 2026-2027 to the Arizona health care cost
containment system administration for graduate medical education programs to
address this state's shortage of physicians.
B. The amounts appropriated
in subsection A of this section may be used for the direct and indirect costs
of graduate medical education. The state general fund appropriation
may supplement, but not supplant, voluntary payments made from political
subdivisions for payments to hospitals that operate a graduate medical
education program. The Arizona health care cost containment system
administration may use the amounts appropriated in subsection A of this section
for start-up costs related to the development of a new residency program.
C. The appropriations made
in subsection A of this section are exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations.