Assigned to HHS AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR H.B. 2450
outpatient treatment centers; licensure; exemption
Purpose
Exempts outpatient treatment centers that have the same governing authority as a licensed
hospital from Department of Health Services (DHS) licensure, supervision, regulation and control.
Background
DHS provides and coordinates public health services and programs for Arizona.
Responsibilities of DHS include: 1) protecting and improving public health; 2) implementing
prevention and control programs for diseases and disabilities; 3) licensing and regulating health
care institutions, child care facilities and various health care providers; 4) providing personnel and
administrative services such as budgeting, information systems and facilities management for the
agency; 5) administering radiation control programs; 6) operating the Arizona State Hospital;
7) overseeing the state laboratory; 8) administering a statewide system of emergency medical
services, trauma care and a trauma registry; 9) collecting and maintaining vital records, including
birth and death certificates; and 10) publishing public health statistics on a variety of public health
measures and trends (A.R.S. §§ 36-104 and 36-132).
Current statute exempts various entities and actions from DHS licensure, supervision,
regulation and control, including: 1) treatment by prayer or spiritual means; 2) hotels, motels and
boarding houses that provide domiciliary and ancillary commercial services; 3) private offices and
clinics of licensed health care providers; 4) dispensaries and first aid stations located within
business or industrial establishments; 5) the collection, processing or distribution or human blood
or plasma; 6) places where four or fewer adults unrelated to the administrator or owner receive
adult day health services; 7) places where persons receive health-related services only from
relatives or legal guardians; 8) places that provide 24-hour health-related services to one or two
people but do not purport to be health services establishments; 9) the personal residence of a
terminally ill patient; 10) facilities and services provided to inmates in Arizona prisons or county
jails; and 11) community education, advocacy or recovery support groups that are not owned by,
operated by or contracted to provide services with a health care institution (A.R.S. § 36-402).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Exempts outpatient treatment centers that are staffed by health care providers and have the
same governing authority as a licensed hospital from DHS licensure, supervision, regulation
and control, unless:
a) patients are kept overnight in the outpatient treatment center or are treated under general
anesthesia; or
b) the outpatient treatment center is an abortion clinic or pain management clinic. FACT SHEET – Amended
H.B. 2450
Page 2
2. Subjects exempt outpatient treatment centers to reasonable inspection by DHS if the Director
of DHS has reasonable cause to believe that patient harm is or may be occurring at the facility.
3. States that a substantiated complaint of patient harm by an exempt outpatient treatment center
is considered a violation against the license of the affiliated hospital.
4. Expands the definition of a health care institution governing authority to include health care
institution owners with an ownership interest of at least 51 percent.
5. Defines exempt outpatient treatment center as a facility with the same governing authority as
a licensed hospital that:
a) does not have inpatient beds;
b) provides health or behavioral health services for the diagnosis and treatment of patients;
and
c) is exempt from DHS licensure.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
• Subjects exempt outpatient treatment centers to reasonable inspection by DHS upon having
reasonable cause to believe that patient harm is or may be occurring at the facility, rather than
upon receiving a complaint.
House Action Senate Action
HHS 2/7/22 DP 6-2-1-0 HHS 3/23/22 DPA 7-0-1
3
rd
Read 2/17/22 43-16-1
Prepared by Senate Research
March 24, 2022
MM/sr