Arizona Pioneers' Home and Hospital for Disabled Miners

This report addresses the need for the State to make critical decisions regarding the Pioneers' Home. First, the Home is in disrepair, and an estimated $7.9 million will be necessary to correct the problems. Second, a significant increase in revenues will be needed to continue existing operations. Third, the Home's operating costs will continue to rise due to the increasing number of residents at the Home requiring skilled care. We recommend that the Legislature consider establishing a special committee of experts and interested parties to consider options and make a recommendation regarding the Home's future. Options include refurbishing and continuing the Home, reducing the scope of the Home's operations, and phasing out and closing the Home. The audit also found that the State continues to inappropriately expend monies in the Miners' Hospital Endowment Fund to support the Home. In addition, the Home has not complied with statutory requirements in determining resident payments for care. Finally, the Home could reduce the costs of providing medical care to residents if residents join a Medicare Health Maintenance Organization.