The state health department gets specific grounds for denying health care institution licenses and ownership changes, must generally limit complaint investigations to violations within the past 12 months (except abuse cases), and must follow set steps and 10-business-day timelines when facilities dispute cited deficiencies.
Official title: health facilities; licensure; complaints; investigations
- September 12, 2026
What changes
BeforeThe department could deny a new health care institution license if the applicant, licensee or a controlling person had a license in an enforcement or court action tied to resident or patient health and safety, or if the department decided for other reasons that a new license was likely to jeopardize safety.
NowThe department may deny a license if issuing it is likely to jeopardize resident or patient safety because the applicant, or anyone in a business relationship with the applicant (including stockholders and controlling persons), has had certain health care institution or professional licenses or certificates denied, revoked or suspended, or has a licensing history of recent serious violations in Arizona or another state that posed a direct risk to patients or residents.
BeforeThe department could deny approval of a change in ownership if the transfer, involving a direct or indirect owner, may jeopardize patient safety.
NowThe department may deny an ownership change if it may jeopardize patient safety because a new direct or indirect owner, or anyone in a business relationship with them (including stockholders and controlling persons), has had such a license denied, revoked or suspended, or has a history of recent serious violations posing a direct risk to patients or residents.
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NowWhen entering a facility to investigate a complaint, the department must tell the licensee the general nature of the complaint, without releasing protected health information or anything that may identify the person who complained.
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NowIn a compliance inspection or initial complaint investigation, the department may not consider or investigate alleged violations that happened more than 12 months before the complaint was submitted. The department may still start an investigation of older incidents if the complaint alleges abuse as defined in state criminal law (section 13-3623).
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NowEach statement of deficiencies must cite the statute or rule for each deficiency. A licensee that wants to dispute a deficiency must, within 10 business days, identify each disputed item and provide an explanation or documentation showing it was in compliance, plus a request to correct or rescind it with supporting documents. The department must review within 10 business days and issue a written decision explaining each item, and issue an amended statement if anything changes. These decisions cannot be appealed through the state's formal agency appeal process.
Who it affects
- Health care institution license applicants and licensees
- People buying or taking ownership of licensed health care institutions, and their business partners, stockholders and controlling persons
- Patients and residents of health care institutions
- People who file complaints about health care institutions
- Arizona Department of Health Services
What you need to do
Nothing for most people. A health care institution licensee that wants to dispute a deficiency must identify it and send the required explanation or documentation and request to the department within 10 business days after receiving the statement of deficiencies.
What the law doesn't answer
- What counts as "recent" or "serious" violations
- How "anyone in a business relationship" is defined beyond stockholders and controlling persons
- What happens if the department misses its 10-business-day deadline to decide a dispute
- Whether the 12-month limit applies to ongoing or repeated problems that began earlier
- What other review, if any, a licensee has after the informal dispute decision
- Whether these rules apply to inspections or complaints already under way
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.