Grand Canyon Times

Potential conflict of interest concerns have emerged under the Hobbs Administration following a judge's findings of "serious flaws" in the awarding of $15 billion worth of contracts by Arizona's Medicaid program. In August, it was determined that the Arizona Health Care Cost Containment System (AHCCCS) improperly awarded contracts for healthcare services to 26,000 elderly and physically disabled individuals enrolled in the Arizona Long Term Care System. The decision cited violations of statutes and rules by AHCCCS, prejudice, lack of transparency, contract awards based on agency interests rather than state interests, an arbitrary ranking system for bid proposals, and deceptive criteria provided to healthcare companies.

Despite a judge's recommendation to cancel the procurement and issue a new request for bid proposals, AHCCCS announced it would not do so. Instead, it plans to delay the transition to newly awarded health plans by one year, starting in October 2025.

This development follows previous controversy involving Sunshine Residential, which received millions in taxpayer dollars after making campaign donations to both Governor Hobbs and the Arizona Democratic Party.

Senator T.J. Shope, Chairman of the Senate Health & Human Services Committee, is investigating alleged mismanagement of taxpayer funds and potential conflicts of interest within the Hobbs Administration. Senator Shope stated: "I'm deeply disturbed by what's transpired under the Hobbs Administration, from the Sunshine Residential pay-for-play scheme to now this procurement scandal. The integrity of state government and its spending practices have been compromised."

He further emphasized his commitment as chairman: "As chairman of the Senate Health & Human Services Committee, it's my goal to get to the bottom of these disputes and determine whether in fact preferential treatment is being provided using the tax dollars of hardworking Arizonans." He intends to conduct a fact-finding mission over several months to decide on appropriate actions through legislation or other legal means.