HB 2450
Initials AG Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: HHS DP 6-2-1-0 | 3
rd
Read 43-16-1-0
Senate: HHS DPA 7-0-1-0 | 3
rd
Read 26-0-4-0
HB 2450: outpatient treatment centers; licensure; exemption
Sponsor: Representative Osborne, LD 13
Senate Engrossed
Overview
Exempts outpatient treatment centers (OTC) that have the same governing authority as a licensed
hospital from Department of Health Services (DHS) licensure, supervision, regulation and control.
History
A collaborating OTC means a licensed OTC that has a written agreement with one or more OTC's,
exempt health care providers or licensed counseling facilities that requires the collaborating OTC
to be liable and responsible pursuant to written policies for all common areas that one or more
colocators use. A colocator is an exempt provider or a governing authority operating as an
outpatient treatment center or a licensed counseling facility that is authorized to share common
areas and nontreatment personnel with another colocator (A.R.S. § 36-439).
One or more OTC licensees providing medical, nursing and health-related services may colocate
or colocate with one or more licenses that provide those services or licensed counseling facilities.
They may also share common areas at the collaborating OTC premises and share nontreatment
personnel (A.R.S. § 36-439.01).
Colocators at collaborating OTCs are required to: 1) designate which OTC will be the collaborating
OTC and be liable and responsible for the health, safety, cleanliness and maintenance of all
common areas and the supervision and training of all shared nontreatment personnel pursuant to
written policies of the collaborating outpatient treatment center; 2) designate which areas are
considered common areas and which personnel are designated as shared nontreatment personnel;
3) designate the associated licensed providers; and 4) ensure that medical records that are located in
common areas or shared by colocators are maintained pursuant to all federal and state confidentiality
laws. A colocator may have access to a patient's medical records only if the patient has consented
(A.R.S. § 36-439.02).
Provisions
Exempt OTC Requirements
1. Allows a clinical nurse specialist to prescribe or dispense pharmacological agents for patients
in an OTC that is exempt from licensure. (Sec. 1)
2. Exempts an OTC that has the same governing authority as a licensed hospital and that is
staffed by licensed health care providers from licensure, supervision, regulation or control of
the Department of Health Services (DHS) unless:
a) Patients are kept overnight in the OTC or are treated under general anesthesia, except
when the treatment by general anesthesia is regulated under the dentistry statutes;
b) The OTC is an abortion clinic; or
c) The OTC is a pain management clinic. (Sec. 3)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2450
Initials AG Page 2 Senate Engrossed
3. Specifies that except for an OTC that is exempt from licensure, a person wishing to begin
operating an OTC before a licensing inspection is completed must submit specified materials
to DHS. (Sec. 4)
4. Subjects an exempted OTC to reasonable inspection by DHS if DHS receives a complaint
that patient harm is occurring at that OTC. (Sec.4)
5. States that a substantiated complaint that harm is occurring at an exempt OTC is a violation
against the hospital's license. (Sec. 4)
6. Specifies that, notwithstanding any other provisions, one or more licensed OTC's or exempt
OTC's that provide specified health-related services may colocate or colocate with one or
more licensees, exempt OTC's or licensed counseling facilities and share common areas at
the collaborating OTC premises and nontreatment personnel. (Sec. 6)
7. Allows the governing authority of a collaborating exempt OTC, by agreement, to share
nontreatment personnel with one or more exempt health care providers or licensed counseling
facilities. (Sec. 7)
8. Allows treatment areas that are licensed under an OTC to be used by an exempt OTC.
(Sec. 7)
9. Allows a licensed or exempt OTC to contract with or employ an exempt health care provider
to provide health care services to the patients of the licensed or exempt OTC. (Sec. 7)
10. Includes exempt OTC's in the list of circumstances they may provide behavioral health
services at a private office or clinic that is operated by an exempt health care provider.
(Sec. 8)
11. Requires an exempt OTC to report to DHS of any unexpected death, self-injury or other
injuries of a patient under their employees care. (Sec. 8)
12. Allows unlicensed employees of an exempt OTC to provide services at the private office or
clinic of the exempt health care professional only when a licensed health care professional
employed by the licensed or exempt OTC is on-site. (Sec. 8)
Miscellaneous
13. Removes the amount of designated satellite facilities that are located farther than one-half
mile from the main hospital building that can be included on a single group license issued by
DHS at the request of an applicant or licensee. (Sec. 4)
14. Removes the amount of designated satellite facilities that are located farther than 35 miles
from the main hospital building that can be included on a single group license issued by DHS,
at the request of an applicant or licensee. (Sec. 4)
15. Defines terms. (Sec. 2, 5)
16. Modifies terms. (Sec. 5)
17. Makes technical and conforming changes. (Sec. 1, 3, 4, 5, 6, and 7)
Senate Amendments
1. Specifies that exempt OTC's are subject to reasonable inspection by DHS if the Director has
reasonable cause to believe that patient harm is or may be occurring at the facility, rather than
upon DHS receiving a complaint.