HB 2334 Summary

• Amends AHCCCS payment provisions to require disproportionate share payments to qualifying hospitals owned or leased by special health care districts, effective October 1, 2014.

• Establishes a new section (36-2903.12) that mandates qualifying hospitals owned or leased by special health care districts submit certified public expense reports by May 1 each year to calculate qualifying disproportionate share hospital expenditures.

• Sets tiered distribution of federal disproportionate share funds between special health care district hospitals and the state general fund: $25 million to hospitals for FY 2017-2018, increasing to $55 million by FY 2020-2021 and beyond.

• Requires the AHCCCS administration to determine annually the amount of available federal financial participation for disproportionate share payments by subtracting allocations for Arizona State Hospital and $16 million for other qualifying hospitals from the total federal allotment.

• Specifies that if qualifying federal funds or available federal participation fall below $77.5 million, the administration shall distribute funds to special health care district hospitals and the general fund proportionally according to the established percentages.