AZ HB2290

Amends AHCCCS disproportionate share hospital payment provisions to mandate payments to qualifying hospitals, including those owned or leased by special health care districts and the Arizona state hospital, subject to 42 U.S.C. § 1396r-4 and the state's section 1115 waiver.

Creates new section 36-2903.12 establishing a process for special health care district hospitals to submit certified public expense reports by May 1 annually to determine qualifying disproportionate share hospital expenditures.

Requires AHCCCS to calculate available federal financial participation for district hospital payments by subtracting amounts for the Arizona state hospital and $16 million for other qualifying hospitals from the total federal disproportionate share allotment.

Establishes a distribution schedule for the $77.5 million federal financial participation cap: FY 2016-2017 ($25M to district hospitals, $52.5M to general fund); FY 2017-2018 ($35M to hospitals, $42.5M to fund); FY 2018-2019 ($45M to hospitals, $32.5M to fund); FY 2019-2020+ ($55M to hospitals, $22.5M to fund).

Requires proportional distribution if either qualifying federal participation or available allotted participation falls below $77.5 million in any fiscal year.