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Arizona Health Care Cost Containment System v. Bentley5/2/1996
LANKFORD, Judge
The Arizona Health Care Cost Containment System ("AHCCCS") appeals from summary judgment denying its claim for recovery of the costs of medical treatment for Jacqueline Bentley. AHCCCS also appeals from the award of attorneys' fees to Bentley.
The superior court decided that AHCCCS lacked a statutory basis for recovery from the proceeds of Bentley's settlement from third-party tortfeasors. We reverse because Ariz. Rev. Stat. Ann. ("A.R.S.") section 12-962(B)(3) (1992) authorizes AHCCCS's recovery.
The facts are undisputed. Bentley was admitted to the University Medical Center after experiencing Toxic Shock Syndrome. Bentley was enrolled in AHCCCS, the state agency that administers the delivery of health care services to Arizona's eligible indigent population pursuant to A.R.S. section 36-2901 et seq. (1993). Through the AHCCCS system, $89,497.51 was paid to Bentley's health care providers for the medical care and treatment she had received to date for her injuries.
Due to the alleged negligence of her health care providers in failing to timely diagnose and treat this condition, Bentley suffered catastrophic injuries. Bentley filed a medical malpractice claim against the health care providers. The defendants paid $2,500,000.00 in settlement. Her net recovery, after attorneys' fees and costs were deducted, was $1,084,050.94.
After the settlement, AHCCCS sought to recover from Bentley the $89,497.51 paid for her medical care. AHCCCS discussed a possible compromise of its claim with Bentley. When no agreement could be reached, AHCCCS sued to recover the full amount.
AHCCCS argued that two statutory provisions authorized it to recover from Bentley: A.R.S. section 12-962 (1992), which provides for subrogation rights; and A.R.S. section 36-2903(G) (1993), which provides for assignment rights. Cross-motions for summary judgment were filed. The superior court granted summary judgment to Bentley, ruling that neither statute allowed AHCCCS to recover. AHCCCS timely appealed to this court.
Summary judgment is appropriate when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Orme School v. Reeves, 166 Ariz. 301, 305, 802 P.2d 1000, 1004 (1990). We review the propriety of summary judgment de novo. Hawkins v. Department of Econ. Sec., 183 Ariz. 100, 103, 900 P.2d 1236, 1239 (App. 1995). We also review issues of statutory interpretation de novo. Id.
I.
We first consider whether AHCCCS could recover through the assignment rights afforded by A.R.S. section 36-2903(G). This statutory subsection provides in relevant part:
The administrator shall coordinate benefits provided under this article to any eligible person who is covered by workers' compensation, disability insurance, a hospital and medical service corporation, a health care services organization or other health or medical or disability insurance plan, or who receives payments for accident-related injuries, so that any costs for hospitalization and medical care paid by the system are recovered from any other available third party payors. . . . The director may require eligible persons to assign to the system rights to all types of medical benefits to which the person is entitled, including but not limited to first party medical benefits under automobile insurance policies. The state has a right to subrogation against any other person or firm to enforce the assignment of medical benefits.
(Emphasis added).
AHCCCS obtained three separate assignments from persons authorized to act on Bentley's behalf. These documents assigned al
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