AHCCCS Director steps down citing personal health concerns
Virginia "Ginny" Rountree
PHOENIX - The Arizona Health Care Cost Containment System (AHCCCS) Director, Virginia "Ginny" Rountree, has resigned after just months of being appointed to her position by Gov. Katie Hobbs.
What they're saying:
On Monday, Feb. 2, she said she's leaving due to personal health concerns and her final day will be on Friday, Feb. 13. She was appointed to lead AHCCCS in late September 2025,
"After deep consideration and conversations with my family, I have made the difficult decision to step down from my role as Director of the Arizona Health Care Cost Containment System (AHCCCS) due to personal health concerns," Rountree said. "I am grateful for the support of AHCCCS staff, community partners, advocates, managed care organizations, providers, associations and sister state agencies who all are committed to serving our members and nurturing collaborative and productive partnerships with AHCCCS. I will work closely over the next two weeks with your team to ensure an effective transition. Thank you for the opportunity to serve."
Gov. Hobbs thanked her for her time, saying she spent 10 years serving the state, and decades serving Arizona's Medicaid recipients.
"As AHCCCS Director, Ginny was focused on carrying out the mission, to provide health insurance coverage to 1.8 million Arizonans. I wish her the best in her future endeavors," Gov. Hobbs said.
A Troubled Agency:
AHCCCS has been under scrutiny in the last few years due to health care fraud being exposed in sober living homes.
State health officials continue to struggle with the enforcement of unlicensed sober living homes as lawmakers demand answers regarding payment delays that have forced some legitimate providers to close.
Rountree appeared before a legislative committee on Jan. 29 for her second hearing. Agency staff reported that while 87% of claims are currently being paid, employees are working directly with providers to resolve outstanding denied claims.
"AHCCCS is not equipped to safely and effectively serve as an operational health plan for the American Indian Health Plan," said State Sen. Carine Werner (R-Dist. 4).
Investigators say the scheme primarily targeted Native Americans enrolled in the American Indian Health Plan. Victims were moved through a network of unlicensed sober living homes while receiving no medical treatment at behavioral health facilities that authorities allege were fraudulent.
State Sen. Werner introduced Senate Bill 1611, which would require AHCCCS to outsource management of the American Indian Health Plan to a third-party contractor. The proposal would strip the state agency of its administrative oversight, transferring responsibilities for care management and program integrity to a private firm.