Dramatic Shakeup: AHCCCS and DHS Directors Step Down

The directors of the Arizona Health Care Cost Containment System (AHCCCS) and the Arizona Department of Health Services (ADHS) resigned on Thursday amid political tensions in the state Senate. The Governor’s Office announced that the Senate Majority would not confirm their nominations, prompting their departures.

Governor Katie Hobbs expressed her support for the nominees in a detailed statement, asserting that their resignations were unrelated to their performance in office. She criticized the politicization of the confirmation process, which she believes undermines effective governance.

“The people of Arizona are tired of the relentless politics that has undermined good governance,” Hobbs stated. She emphasized that leadership should focus on public service, regardless of political affiliation.

Carmen Heredia, appointed to lead AHCCCS in January 2023, previously served as CEO of Valle del Sol, a community health nonprofit aimed at supporting Latino and underserved populations. Heredia was expected to address critical issues before the Senate on the same day she resigned, including a scandal involving sober living homes and concerns over state contracts.

Sen. Jake Hoffman, chair of the Senate Nominations Committee, labeled Heredia as “unqualified” and criticized her handling of various department issues. He called for the appointment of a leader capable of addressing perceived abuses within AHCCCS.

Will Humble, a former ADHS director, noted that many stakeholders had backed Heredia before her resignation, highlighting her collaborative approach.

Jennie Cunico, the now-former ADHS director, was appointed to the position in December 2023 after Hobbs’ initial selection resigned. Hoffman suggested that Cunico’s exit stemmed from a contentious meeting where she defended controversial public health policies from the COVID-19 era.