Assigned to HHS FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1100
Arizona state hospital; private entity
Purpose
Requires, rather than allows, the Department of Health Services (DHS) to enter into a five-year
contract with a private entity to administer the Arizona State Hospital (ASH) and deliver client
services.
Background
ASH is a division of DHS and serves all counties and tribal communities within the State
of Arizona. Patients and residents are admitted only on an involuntary basis pursuant to a court
order due to the severity of their mental illness or behavioral disorder and an inability to be
successfully treated in a community facility, as a result of their involvement in the criminal justice
system and/or their propensity poses an imminent risk to public safety should they be released to
the community. Treatment at ASH is considered the highest and most restrictive level of inpatient
care in the State. ASH consists of three separately licensed facilities: 1) the Civil Hospital; 2) the
Forensic Hospital; and 3) the Arizona Community Protection and Treatment Center. Regardless
of the admitting facility, patients or residents are provided with clinical and administrative
programs designed to meet their individualized needs. This includes psychiatric care, psychosexual
education, medical and nursing services, pharmacotherapy management, rehabilitation, social
work, psychological services, dietary services and nutritional care (DHS).
DHS is responsible for oversight and administration of ASH. However, DHS may enter
into a five-year contract with a private entity to administer ASH and deliver client services. DHS
may renew its contract with a private entity up to two times, with each renewal period lasting no
longer than five years. DHS may terminate the contract after one year with no penalty, given that a
90-day written notice is provided to the contractor. Adjustments to the contract can only be made
once a year following the anniversary of the contract's effective date and must be authorized by
the Legislature and the Joint Legislative Budget Committee (JLBC). The contractor is liable for
the costs of emergency, public safety and security services that are paid for by Arizona or any
political subdivision thereof and must reimburse them in their entirety.
If DHS enters into a contract for the private administration of ASH, at the end of the fourth
year of the contract, an independent evaluator must conduct and complete a performance review
to determine if the contracting entity has met the goals specified in the contract. Upon completion,
the evaluator must submit a report of its findings to the Governor, the President of the Senate, the
Speaker of the House of Representatives, JLBC and provide copies to the Secretary of State and
the Director of the Arizona State Library, Archives and Public Records (A.R.S. ยง 36-214).
If there is a cost associated with privatizing the administration of ASH and delivery of
client services, there may be a fiscal impact to the state General Fund. FACT SHEET
S.B. 1100
Page 2
Provisions
1. Requires, rather than allows, DHS to enter into a five-year contract with a private entity to
administer ASH and deliver client services.
2. Requires, within 90 days after the end of the fourth year of the contract, the independent
evaluator reviewing the contracting entity to submit a report of its findings to the Governor,
the President of the Senate, the Speaker of the House of Representatives and JLBC.
3. Removes the requirement that the independent evaluator's report be sent to the Director of the
Arizona State Library, Archives and Public Records.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 26, 2024
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