St. Mary's Hospital and Health Center v. State

In St. Mary's Hospital and Health Center v. State, 150 Ariz. 8, 9, 721 P.2d 666, 667 (App. 1986) the court held that hospitals and health care providers had to exhaust their administrative remedies on claims for payment for services rendered to members of Arizona Health Care Cost Containment System Administration ("AHCCCS"). AHCCCS adopted a grievance and appeal process "for all claims for payments arising from the delivery of hospitalization and medical care under the system." Id. at 10, 721 P.2d at 668. The court refused to address the claimant's arguments based on state and federal statutes and regulations because the claims were "inextricably intertwined" with claims for nonpayment of hospital and medical services. Id. at 10-11, 721 P.2d at 668-69.