Department of Health Services, Division of Licensing Services - Healthcare and Child Care Facility Licensing Fees

The Department licenses and regulates healthcare and child care facilities in Arizona. Although the Department charges licensing fees, the fees covered only about 10 percent of the cost of regulating these facilities in fiscal year 2008. Licensing fees could be modified to cover more, if not all, of the State’s regulatory costs, similar to fees in two other states and in Arizona’s 90/10 boards. The Department should develop a cost-based method for calculating fees, including direct and indirect licensing and monitoring costs, and propose new fees based on this method. The Legislature should then consider modifying fees through revising the statutory caps, authorizing the Department to set fees in rule, or establishing a mechanism in statute for determining fees.