Residential Care Services in Arizona offer structured, 24/7 care and supervision for individuals with developmental disabilities who cannot safely live alone or with family. Delivered under Arizona’s Medicaid program through the Arizona Long Term Care System (ALTCS) and the Division of Developmental Disabilities (DDD), Residential Care Services support individuals in licensed homes or group settings that foster independence, dignity, and personal growth.

1. GOVERNING AGENCIES

Agency: Arizona Department of Economic Security (DES) – Division of Developmental Disabilities (DDD)
Role: Oversees provider approval, licensing, and monitoring of residential service providers

Agency: Arizona Health Care Cost Containment System (AHCCCS)
Role: Administers Medicaid enrollment and reimbursement under ALTCS/DDD

Agency: Arizona Department of Health Services (ADHS) – Office of Assisted Living Licensing
Role: Licenses residential care homes and ensures compliance with health and safety standards (when applicable)

Agency: Centers for Medicare & Medicaid Services (CMS)
Role: Provides federal oversight of Medicaid waiver compliance and home- and community-based settings (HCBS) standards

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2. RESIDENTIAL CARE SERVICE OVERVIEW

Residential Care Services support individuals living in a provider-operated or licensed residential setting, such as group homes. Services are person-centered and aim to help individuals gain life skills, engage in their communities, and live as independently as possible in a structured, safe environment.

Approved providers may deliver:

24-hour supervision and care in a residential setting

• Assistance with Activities of Daily Living (ADLs) like bathing, dressing, and mobility
• Medication management and health monitoring (non-nursing)
• Meal planning, preparation, and nutrition support
• Life skills training (e.g., personal hygiene, laundry, budgeting)
• Behavioral support services
• Social, recreational, and community integration activities
• Documentation of daily activities, progress, and incidents

All services must align with the individual’s person-centered service plan and be documented accordingly.

3. LICENSING & PROVIDER APPROVAL REQUIREMENTS

Prerequisites:

• Register business with the Arizona Corporation Commission
• Obtain EIN from the IRS and NPI (Type 2)
• Apply as a Qualified Vendor through the Arizona Department of Economic Security (DES) – DDD
• Obtain a Residential License through the Arizona Department of Health Services (ADHS), if applicable (depending on home size and services)
• Secure compliant housing that meets zoning, fire, and health codes
• Maintain liability insurance, workers’ compensation, and staff supervision systems
• Ensure homes meet Home and Community-Based Settings (HCBS) Final Rule requirements

4. DDD QUALIFIED VENDOR ENROLLMENT PROCESS

Initial Interest and Pre-Application:

• Register with the Qualified Vendor Application and Directory System (QVADS)
• Attend the required DDD Qualified Vendor orientation

Application Submission:

Submit a Qualified Vendor Application through QVADS, including:

• Business and service delivery plan
• Facility information and floor plan
• Staff qualifications and training procedures
• Emergency response, health, and behavior support policies
• Financial and administrative capability

Home Licensing:

• Apply for a residential license through ADHS (if required)
• Complete fire inspections, safety checks, and occupancy approvals

Review and Approval:

• DDD conducts review and site visits as necessary
• Finalize Qualified Vendor Agreement upon approval

Medicaid Enrollment with AHCCCS:

• Enroll with AHCCCS and obtain a Medicaid provider ID
• Activate billing codes for Residential Habilitation and related services
• Set up electronic claims through AHCCCS Online

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5. REQUIRED DOCUMENTATION

• Articles of Incorporation or Business License
• IRS EIN Letter
• NPI confirmation
• QVADS registration and DDD approval
• Residential license (if applicable)

SDS-Compliant Policy & Procedure Manual including:

• Admission and intake procedures
• Emergency preparedness and fire safety plans
• ADL and behavioral support documentation
• Medication administration and health support protocols
• Participant rights and informed consent forms
• Staff hiring, background check, and training documentation
• Incident reporting and resolution processes
• Shift logs, progress tracking, and service billing forms

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6. STAFFING REQUIREMENTS

Role: Residential Program Manager / House Manager
Requirements: Experience supervising residential programs and coordinating HCBS services

Role: Direct Support Professional (DSP)
Requirements: Minimum age 18, high school diploma or GED, background check, CPR/First Aid, Article 9 training

All staff must complete:

• CPR/First Aid and Article 9 Training (required by DDD)
• Prevention and Support (if supporting individuals with behavioral needs)
• DDD orientation and HCBS standards
• Medication administration and documentation training
• Annual refresher training and continuing education

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7. MEDICAID WAIVER SERVICES

The following Arizona Medicaid Waivers authorize Residential Care Services:

• ALTCS – Division of Developmental Disabilities (DDD) Waiver
• ALTCS – Elderly and Physically Disabled (EPD) Waiver (under specific licensing models)

Approved providers may deliver:

• 24-hour residential habilitation in group home settings
• Individualized support for community participation
• Life skills coaching and behavior support
• Documentation and communication with care teams and support coordinators

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8. TIMELINE TO LAUNCH

Phase: Business Formation and Home Setup
Timeline: 2–3 weeks

Phase: QVADS Application and Licensing Review
Timeline: 60–120 days

Phase: Staff Onboarding and Home Readiness
Timeline: 30–60 days

Phase: AHCCCS Medicaid Enrollment and Billing Setup
Timeline: 45–60 days

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9. CONTACT INFORMATION

Arizona Department of Economic Security (DES) – Division of Developmental Disabilities (DDD)
Email: DDDProviderRegistration@azdes.gov
Phone: (602) 542-6874
Website: https://des.az.gov/services/disabilities/developmental-disabilities

Arizona Department of Health Services (ADHS) – Licensing Services
Phone: (602) 364-3030
Website: https://www.azdhs.gov

Arizona Health Care Cost Containment System (AHCCCS)
Website: https://www.azahcccs.gov

QVADS Vendor Portal: https://vendorhub.azdes.gov

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10. SCOPE OF WORK

• Business formation (LLC, EIN, NPI)
• QVADS and DDD Qualified Vendor Application Support
• ADHS residential licensing guidance and inspection prep
• Policy & Procedure Manual tailored to Arizona residential care regulations
• Templates for shift notes, behavior tracking, incident reports, and care logs
• Medicaid enrollment and AHCCCS billing setup
• WEBSITE, DOMAIN, AND EMAIL SETUP
• CLIENT ADMISSION PACKET AND INDIVIDUALIZED SERVICE PLAN TEMPLATES
• STAFF RECRUITMENT, ORIENTATION, AND TRAINING MATERIALS
• HOME SAFETY CHECKLISTS AND LICENSING READINESS TOOLS
• QUALITY ASSURANCE SYSTEMS AND REFERRAL NETWORKING STRATEGIES

WAIVER CONSULTING GROUP'S START-UP ASSISTANCE SERVICE — ARIZONA RESIDENTIAL CARE SERVICES PROVIDER

We guide providers through the full launch of licensed, Medicaid-approved Residential Care Services under Arizona’s HCBS and ALTCS waiver systems.​​​​​​​​​​​​​​​​​​​​