Hobbs Administration Faces Scrutiny Over Potential Conflict of Interest

By Daniel Stefanski |

The Hobbs Administration faces fresh scrutiny amid allegations of conflicts of interest concerning state healthcare contracts. Arizona State Senator T.J. Shope, who serves as the Senate President Pro Tempore, announced that an administrative law judge found the Arizona Health Care Cost Containment System (AHCCCS) improperly awarded contracts affecting 26,000 elderly and disabled individuals enrolled in the Arizona Long Term Care System.

Shope’s statement emphasized serious concerns surrounding the procurement process, highlighting violations of state statutes and rules, a lack of transparency, and an arbitrary ranking system for bid proposals. Furthermore, he noted the judge’s recommendation to cancel the current procurement and issue new bids, which AHCCCS declined, instead opting to delay the transition to the new health plans until October 2025.

Expressing his dismay, Shope remarked, “I’m deeply disturbed by what’s transpired under the Hobbs Administration… The integrity of state government and its spending practices have been compromised.” As chairman of the Senate Health & Human Services Committee, he is committed to investigating these disputes and ensuring the responsible use of taxpayer dollars.

Earlier this year, the Arizona Republic reported a 60% rate increase approved by the Arizona Department of Child Safety for Sunshine Residential Homes Inc., amidst denials of rate increases for other providers. Following this revelation, Shope urged Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell to investigate the circumstances surrounding this apparent preferential treatment.

State Representative Matt Gress reinforced these concerns, indicating a willingness from the Auditor General’s Office to collaborate in uncovering the facts surrounding the alleged breaches of trust within state systems.

In response to these events, Mayes communicated with both Mitchell and Auditor General Lindsey Perry, asserting that simultaneous investigations could compromise the integrity of pending inquiries. Meanwhile, State Treasurer Kimberly Yee also called for an investigation into the allegations, challenging the notion of exclusive jurisdiction over the matter.

As the investigation unfolds, the pressure mounts on the Hobbs Administration to address these serious allegations and restore faith in the integrity of state operations.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.