2014 Arizona Revised Statutes
Title 36 - Public Health and Safety
§ 36-261 Powers and duties; expenditure limitation

36-261. Powers and duties; expenditure limitation

A. The Arizona health care cost containment system administration shall:

1. Employ a full-time or part-time medical director and a full-time or part-time administrator for children's rehabilitative services who shall have such titles and duties as shall be fixed by the director. Compensation of the medical director and the administrator shall be as determined pursuant to section 38-611.

2. Supervise, control and establish policies for children's rehabilitative services.

3. Adopt all rules and policies for the operation of a children's rehabilitative services program.

4. Employ necessary medical and other staff, including resident physicians, whose compensation shall be as determined pursuant to section 38-611.

5. Establish and administer a program of service for children who are chronically ill or children with physical disabilities or who are suffering from conditions that lead to a chronic illness or physical disabilities. The program shall provide for:

(a) Development, extension and improvement of services for locating these children.

(b) Furnishing of medical, surgical, corrective and other services and care.

(c) Furnishing of facilities for diagnosis, hospitalization and aftercare.

(d) Supervision of the administration of services in the program that are not administered directly by the administration.

(e) The extension and improvement of any services included in the program of services for chronically ill or children with physical disabilities as required by this section.

(f) Cooperation with medical, health, nursing and welfare groups and organizations and with any agency of the state charged with administration of laws providing for vocational rehabilitation of children with physical disabilities.

(g) Cooperation with the federal government through its appropriate agency or instrumentality in developing, extending and improving services for chronically ill or children with physical disabilities.

(h) Receipt and expenditure of funds made available to the administration for services to chronically ill or children with physical disabilities by the federal government, this state or its political subdivisions or from other sources, excluding monies received from parents or guardians for the care of children.

(i) Carrying on research and compiling statistics.

(j) Making necessary expenditures in connection with the duties provided in this section.

(k) Establishing and maintaining safeguards relating to the confidential aspect of medical records.

(l) Acceptance and use of federal funds for children's rehabilitative services at the discretion of the administration and subject to any limitations imposed by the annual state appropriation bill.

(m) Such other duties found necessary for the effective operation of a program for chronically ill or children with physical disabilities.

6. Establish a statewide computerized information and referral service for chronically ill or children with physical disabilities to link those children and their families with local service providers.

7. Deposit in the state general fund all monies received from parents or guardians for the care of children.

8. Deposit in the state general fund all monies received from adults, other responsible persons, agencies or third-party payors for care provided pursuant to section 36-797.44.

B. In order to carry out subsection A of this section, the director may operate outpatient treatment facilities for chronically ill or children with physical disabilities and shall contract on the basis of competitive sealed bids for the care and treatment of chronically ill or children with physical disabilities pursuant to subsection C of this section.

C. The director shall prepare and issue a public request for proposal including a proposed contract format, at least once every four years, to contract for the care and treatment of chronically ill or children with physical disabilities subject to the following authorizations and limitations:

1. The scope of the contracted services shall include inpatient treatment services, physician services and other care and treatment services and outpatient treatment services that shall not be mandated at a single location.

2. Bids may be accepted from hospital and medical service corporations, health care services organizations, hospitals, physicians and any other qualified public or private persons.

3. A bidder's direct costs, as defined in the request for proposal, shall be disclosed in and be the basis of the bid submitted. Direct costs shall not include depreciable real or personal property with an original cost of over one thousand dollars. For bid evaluation purposes only, the director shall specify a uniform assumed collection rate applicable to all bidders. If the director executes fee-for-services health care contracts, the contracts shall provide the maximum payment to be made for specific procedures and services.

4. The administration may award a contract at an amount less than the amount bid, by use of any procedure authorized by the procurement code.

5. If the director receives an insufficient number of bids for a category of services or in a medical emergency, the director may contract directly for these services.

6. An invitation for bids, a request for proposals or any other solicitation may be cancelled or any or all bids or proposals may be rejected in whole or in part as may be specified in the solicitation if it is in the best interests of this state. The reasons for the cancellation or rejection shall be made part of the contract file. If the amount appropriated for services provided pursuant to this section is insufficient to pay for the scope of services as bid, the director may reduce the scope of services to reflect the amount appropriated or may cancel any invitation for bids, requests for proposals or other solicitation and contract directly for these services. Reductions or suspensions do not apply to the continuity of care for persons already receiving the services. Any decision to reduce services shall be made independently from any other modification of services.

7. Title 41, chapter 23 shall apply to the procurement process prescribed in this section to the extent that it is not inconsistent with this section. The director may vary the bid format and the terms of the request for proposal each bid term.

D. In awarding contracts for inpatient and outpatient treatment services under this section, the administration shall use the following criteria in addition to other consistent criteria:

1. Cost to this state.

2. The treatment facility's demonstrated experience in and qualifications for providing pediatric services.

E. If the provision of any services pursuant to this section requires compliance with chapter 4, article 2 of this title, the contractor shall comply before commencement of services pursuant to this section.

F. Subject to the availability of appropriations, the administration may provide or arrange for the provision of health services and supervisory care for child patients of other state agencies.

G. The administration, through the children's rehabilitative services division, may establish and administer a program for children with sickle cell anemia, as provided for in section 36-797.43.

H. The administration, through the children's rehabilitative services division, may establish and administer a program for adults with sickle cell anemia, as provided for in section 36-797.44.

I. The director may provide for the education of inpatients at any facility that contracts with the director to provide care and treatment of chronically ill or children with physical disabilities. The director shall include in the director's annual proposed budget a request for sufficient monies to finance the education of inpatients as authorized in this subsection.

J. The total amount of state monies that may be spent in any fiscal year by the administration for children's rehabilitative services shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.