DDD_ALF_Exemption_MOU_signed.pdf

Katie Hobbs Governor

Michael Wisehart Director

1789 W. Jefferson, Mail Drop 1111, Phoenix, AZ 85007 P.O. Box 6123, Mail Drop 1111, Phoenix, AZ 85005

Telephone (602) 542-5757 Fax (602) 542-5339 https://des.az.gov/

PROCUREMENT FILE MEMORANDUM

DATE: January 30, 2025

TO: Yesenia Sandoval, Chief Procurement Officer

FROM: Amber Chapman, Procurement Specialist

SUBJECT: Assisted Living Facility Services (ALFS)

The Arizona Department of Economic Security, Division of Developmental Disabilities (ADES/DDD), is responsible for providing continuous residential care service options to eligible DDD members. An Assisted Living Facility (ALF) is a residential care facility licensed by the Arizona Department of Health Services (ADHS) to provide supervisory care, personal care, or direct care services as defined in the Arizona Administrative Code (A.A.C.), Title 9, Chapter 10, Article 8. Assisted Living Centers (ALC) and Assisted Living Homes (ALH) are settings designed for DDD members who are physically or functionally unable to live in their own homes but do not require the care intensity of a nursing facility. An ALC serves eleven (11) or more residents, while an ALH serves ten (10) or fewer residents.

The DDD has determined it will not transition ALFS to a Qualified Vendor Agreement (QVA) for HCBS, pursuant to A.R.S. § 36-2939(A)(2), but will continue providing services using direct contracts while adhering to the procurement practices of the State of Arizona under the guidance of the DES Office of Procurement. The DDD will continue to follow the Medical Policy Manual Chapter 1200 Services and Settings, Section1230-A, Assisted Living Facilities Policy and Division of Developmental Disabilities Assisted Living Services Procedure for services provided in an Alternative Home and Community Based Service (HCBS) Setting. Each request for an Alternative HCBS settings shall be approved by the DDD Director and either 1) Licensed or certified by a regulatory agency of the state, 2) Operated by the Indian Health Services (IHS), an Indian tribe or organization, or an urban Indian organization and must meet all applicable standards for state licensure, regardless of whether it has obtained the license.

The DDD currently has ten (10) active ALF direct contracts, serving sixteen (16) DDD Members with an expiration date of 4/30/2025. DDD is requesting approval from the Office of Procurement as it is in the best interest of the State to allow the DDD to extend the existing ALC and ALH contracts and allow for new ALF contracts to be executed for an initial one (1) year with supplemental periods up to a maximum contract term of five (5) years or not exceed 4/30/2030. The extension and new contracts will continue to allow continuity of services, ensuring the health and safety of the members

Chief Procurement Officer Date Arizona Department of Economic Security cc: Procurement File Patrick Hays, DDD Deputy Assistant Director Vanessa Holt, DDD Business Administrator Michelle Skurka, DDD Contracts Administrator

1/30/2025 https://des.az.gov/sites/default/files/media/Division_Medical_Policy_Manual_Chapter_1230-A_Assisted_Living_Facilities_102820.pdf?time=1735678004314%20%20 https://des.az.gov/sites/default/files/media/Division_Medical_Policy_Manual_Chapter_1230-A_Assisted_Living_Facilities_102820.pdf?time=1735678004314%20%20 https://docs.google.com/document/d/1T6T92Ag9g-fSleB1SJLR8kWcpS3m0J6hESoZY-159vw/edit?usp=sharing https://docs.google.com/document/d/1T6T92Ag9g-fSleB1SJLR8kWcpS3m0J6hESoZY-159vw/edit?usp=sharing