Assigned to HHS & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B.1178
hospital interconnectivity; appropriation
Purpose
Requires the Health Care Interoperability Grant Program (Grant Program), administered
by the Arizona Department of Administration (ADOA), to provide a single grant to a company
that licenses an interoperability software technology solution to support acute care for outlined
facilities. Appropriates $12,000,000 from the state General Fund (state GF) in FY 2025 to ADOA
for the single grant.
Background
In 2022, the Legislature appropriated $12,000,000 to ADOA to establish a three-year
competitive grant program that provides interoperability software technology solutions to support
rural hospitals, health care providers and urban trauma centers to further treatment care
coordination with a focus on reducing public and private health care costs and unnecessary
transportation costs. The software must be made available to participating rural hospitals, health
care providers and urban trauma centers by enabling a hospital's electronic medical records system
to interface with other electronic medical records systems and providers to promote connectivity
between hospital systems and providers to promote connectivity between hospital systems and
facilitate increased communication between hospital staff and providers that use different or
distinctive online platforms and information systems when treating patients. The interoperability
software technology solution and grant applicant must meet outlined requirements to be eligible
for a grant. ADOA must award the first grant by December 31, 2022. The Grant Program
terminates on June 30, 2026 (A.R.S. ยง 41-703.01; Laws 2022, Ch. 313 and 314).
In FY 2024 the Legislature made a one-time appropriation of $3,000,000 from the state GF
to the Grant Program and modified the Grant Program to require the grant of $3,000,000 to be
awarded to a single company who licenses an interoperability software that is available to current
and future health care providers though a mobile native smartphone application (Laws 2023,
Ch.133 and 139).
S.B.1178 appropriates $12,000,000 from the state GF in FY 2025 to ADOA.
Provisions
1. Requires ADOA to administer the Grant Program to provide a single grant to a company that
licenses an interoperability software technology solution to support acute care for rural
hospitals, health care providers and trauma centers with resources to further treatment and care
coordination.
2. Extends the Grant Program permanently. FACT SHEET
S.B. 1178
Page 2
3. Appropriates $12,000,000 from the state GF in FY 2025 to ADOA to administer the grant
award.
4. Extends the deadline for ADOA to award the grant from December 31, 2022, to December 31, 2024.
5. Prohibits the grant recipient from using a third-party vendor to comply with any Grant Program
requirements.
6. Requires the Grant Program to enable the implementation of a single licensed interoperability
software technology solution that is accessible to current and future health care providers via
a mobile, native smartphone application.
7. Modifies the requirements of the interoperability software technology solution to include the
ability to:
a) enable a hospital's electronic medical records system to interface with interoperability
technology;
b) enable providers to promote mobile connectivity between hospital systems and facilitate
increased communication between hospital staff and providers that use different or
distinctive mobile platforms when treating acute patients;
c) provide proactive alerts to health care providers on their smartphones or a smart device;
d) allow for synchronous and asynchronous communication via a native smartphone
application; and
e) be mobile and capable of being used on multiple electronic devices.
8. Requires the mobile technology to include, at a minimum, the industry standard built-in
application for the two most popular operating systems and a built-in application available to
all users.
9. Requires the grant recipient to demonstrate that its interoperability software technology
solution meets all outlined requirements at least 30 days before applying for the grant.
10. Requires the interoperability software technology solution license to be renewed annually.
11. Exempts the appropriation from lapsing.
12. Defines mobile and native.
13. Makes technical and conforming changes.
14. Becomes effective on the general effective date.
Prepared by Senate Research
January 26, 2024
MM/KS/slp