SB 1603
Initials AG Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
Senate: HHS DP 4-3-0-0 | 3
rd
Read 18-11-1-0
House: HHS DPA 5-4-0-0
SB 1603: hospital; price transparency
Sponsor: Senator Shamp, LD 29
House Engrossed
Overview
Directs the Arizona Department of Health Services (DHS) to annually verify each hospital's
compliance with federal hospital price transparency regulations with the Centers for Medicare &
Medicaid Services (CMS).
History
45 C.F.R. Part 180 requires hospitals operating within the U.S. to annually establish, update and
make public a list of the hospital's standard charges for items and services provided by the
hospital, including for diagnosis-related groups (DRGs). CMS assesses whether a hospital has
complied with these requirements. Methods used to monitor and evaluate hospital compliance
with these regulations include but are not limited to the following: 1) evaluation of complaints
made by individuals or entities to CMS; 2) CMS review of individuals' or entities' analysis of
noncompliance; and 3) CMS audit of hospitals' websites.
If CMS concludes that the hospital is noncompliant with one or more requirements it may take
any of the following actions: 1) provide a written warning notice to the hospital of the specific
violations; 2) request a corrective action plan from the hospital if its noncompliance constitutes a
material violation of one or more requirements; and 3) impose a civil monetary penalty on the
hospital and publicize the penalty on CMS's website if the hospital fails to respond to its request
to submit a corrective action plan or comply with the requirements of a corrective action plan.
Additionally, health care facilities with more than 50 inpatient beds must make available on
request or online the direct pay price for at least the 50 most used DRG codes and outpatient
service codes, if applicable. For health care facilities with 50 or fewer inpatient beds, they must
make available on request or online the direct pay price for at least the 35 most used DRG codes
and outpatient services codes, if applicable. The Arizona State Hospital (ASH), Indian Health
Service hospitals and facilities are excluded from these requirements (A.R.S. § 36-437).
Provisions
1. Directs hospitals to comply with federal hospital price transparency regulations. (Sec. 1)
2. Requires DHS to annually verify, with CMS, each hospital's compliance with the federal
hospital price transparency regulations. (Sec. 1)
2. Requires, by January 1, 2025, and annually thereafter, DHS to post a report on its public
website containing the name of any hospital that has been found to be noncompliant with the
federal hospital transparency regulations and has been assessed a civil monetary penalty by
CMS. (Sec. 1)
3. Exempts ASH from the federal hospital price transparency regulations. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1603
Initials AG Page 2 House Engrossed
4. Makes technical and conforming changes. (Sec. 1, 2)