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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: APPROP DP 9-0-1-0 | HHS DP 7-0-0-0 | 3rd Read 26-1-3-0 |
SB 1623: appropriations; graduate medical education program
Sponsor: Senator Werner, LD 4
Committee on Health & Human Services
Overview
Appropriates $10,000,000 from the state General Fund (GF) and $18,768,700 in expenditure authority in fiscal year (FY) 2026 to the Arizona Health Care Cost Containment System (AHCCCS) for graduate medical education (GME) programs and for start up costs related to the development of a new residency program.
History
Established in 1981, AHCCCS is Arizona's Medicaid program that oversees contracted health plans for the delivery of health care to individuals and families who qualify for Medicaid and other medical assistance programs. Through contracted health plans across the state, AHCCCS delivers health care to qualifying individuals including low-income adults, their children or people with certain disabilities. Current statute outlines covered health and medical services offered to AHCCCS members (A.R.S. § 36-2907).
GME programs are programs, including approved fellowships, that prepare a physician for independent practice of medicine by providing didactic and clinical education in a medical discipline to a medical student who has completed a recognized undergraduate medical education program (A.R.S. § 36-2901).
AHCCCS distributes GME funds to hospitals that provide training and education for medical school graduates. This training includes internships, residencies and fellowships. GME funds are either designated to cover direct medical education expenses or indirect medical education expenses. In addition to state GF monies, local, county and tribal governments, as well as public universities, may provide a state match to a recipient of the entity's choice (A.R.S. § 36-2903.01).
Provisions
1. Appropriates $10,000,000 from the state GF and $18,768,700 in expenditure authority in FY 2026 to AHCCCS for GME programs, in addition to any other appropriations made in FY 2026. (Sec. 1)
2. States the purpose of the funding is to address Arizona's shortage of physicians. (Sec. 1)
3. Allows the appropriated amounts to be used for direct and indirect costs of GME. (Sec. 1)
4. Permits the state GF appropriation to supplement, but not supplant, voluntary payments made from political subdivisions for payments to hospitals that operate a GME program. (Sec. 1)
5. Allows AHCCCS to use the appropriated amounts for start-up costs related to the development of a new residency program. (Sec. 1)
6. Exempts the appropriation from lapsing. (Sec. 1)
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10. SB 1623
11. Initials AG/AB Page 0 Health & Human Services
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