36-3403

36-3403. Powers and duties of the deputy
director; study; capitation rates

A. The deputy director may, on approval of the director:

1. Employ professional, secretarial and clerical staff as are determined necessary
by the director to carry out the functions and duties of the division, subject to
legislative appropriation.

2. Contract for the services of consultants and other persons which are reasonably
necessary to enable the division to carry out its functions and duties, subject to
legislative appropriation.

3. Contract and incur obligations which are reasonably necessary within the general
scope of the division.

4. Adopt rules which are necessary to carry out the requirements of the division.

5. Contract or enter into intergovernmental agreements with other public and
private nonprofit agencies and entities.

6. Use monies, facilities or services to provide matching contributions under
federal or other programs which further the objectives and programs of the division.

7. Accept gifts, grants, matching monies or direct payments from public or private
agencies or private persons and enterprises for the conduct of programs which are
consistent with the general purposes and objectives of the division.

8. Lease at fair market value real property currently occupied by the southern
Arizona mental health center for the purposes of operating a private nonprofit behavioral
health care facility. Monies collected from the lease of the real property shall be
deposited into the building renewal fund established pursuant to section 36-545.09.

B. The deputy director shall administer:

1. Unified mental health programs, to include the functions of the state hospital
and community mental health.

2. Addictive behavior programs to include alcohol and drug abuse.

C. Notwithstanding any other law the deputy director may waive or reduce the
requirements for local match.

D. The superintendent of the Arizona state hospital shall be appointed by the
deputy director, subject to the approval of the director, and shall report directly to
the deputy director.

E. The department shall contract with an independent consulting firm for an annual
study of the adequacy and appropriateness of title XIX reimbursement rates to providers
of behavioral health services. The department may require, and the department's
contracted providers shall provide, financial data to the department in the format
prescribed by the department to assist in the study. A complete study of reimbursement
rates shall be completed no less than once every five years. The department shall provide
the report to the joint legislative budget committee and the Arizona health care cost
containment system administration by October 1, 2002 and by October 1 of each year
thereafter. The department shall include the results of the study in its yearly
capitation request to the Arizona health care cost containment system administration. If
results of the study are not completely incorporated into the capitation rate, the
Arizona health care cost containment system administration shall provide a report to the
joint legislative budget committee within thirty days of setting the final capitation
rate, including reasons for differences between the rate and the study.

F. Capitation rate adjustments shall be limited to utilization of existing services
and inflation unless policy changes, including creation or expansion of programs, have
been approved by the legislature or are specifically required by federal law or court
mandate.