Allows Arizona to rebase its outpatient hospital reimbursement fee schedule effective October 1, 2011 using the most current available Medicare cost data.

Reduces hospital inpatient outlier reimbursement for services from October 1, 2011 to September 30, 2012.

Establishs a 25-day limit per contract year on inpatient hospital services for adults age 21 and older.

Requires States that recognize freestanding birth centers to providecoverage and separate payments for freestanding birth center facility services and servicesrendered by certain professionals proyiding services in freestanding birth centers.

Restores the hospice benefit for acute care program members ages 21 and older.

Updates the State Plan to include standards of pricing and payment for 340B drugs.

This SPA is for the non-payment for provider preventable conditions, effective July 1, 2012.

Updates the amounts of Arizona graduate medical education and indirect medical education payment pools and designates the qualifying teaching hospitals for each payment pool for the fiscal period of July 1, 2011 to June 30, 2012.

Makes a technical change to updates the effective date for inpatient hospital, outpatient hospital, and various non institutional services to October 1, 2011 This SPA also updates the coverage description and removesthe reimbursement language for Religious Non-Medical Health Care Institutions.

Assures that Arizona complies with the process of screening and enrolling providers and suppliers for the Medicaid program in accordance with Section 6401 of the Affordable Care Act, the Provider Screening and Other Enrollment Requirements Under Medicare, Medicaid,and CHIP.