The directors of the Arizona Health Care Cost Containment System and the Arizona Department of Health Services resigned Thursday “after it became clear to the Governor’s Office that the Senate Majority will refuse to confirm their nominations,” according to a press release from the Governor’s Office. 

In a lengthy statement, Gov. Katie Hobbs defended both nominees, stating that their resignations had nothing to do with their leadership at either department.

“Unfortunately, the Senate’s unprecedented politicization of the director confirmation process has ended the directorship of two healthcare professionals who have made our state government run more efficiently and more effectively,” Hobbs said.  “The people of Arizona are tired of the relentless politics that has undermined good governance in the name of partisan retribution. It should not matter whether the leaders of our state government are Democrats or Republicans; it should matter that our state is run by public servants who do what’s right for everyday people.”

Carmen Heredia was appointed to the AHCCCS director position in January 2023. She came to AHCCCS from Valle del Sol, a nonprofit community health organization focused on services for the Latino and underserved communities. She served as the organization’s chief executive officer from 2019 to 2023 and chief operations officer from 2013 to 2019. 

Heredia was expected to appear before the Senate Director Nominations Committee on Thursday, where lawmakers would have had the opportunity to question her about recent department issues and scandals, including the sober living home fraud, improperly issued contracts, and the Parents as Paid Caregivers Program. 

Sen. Jake Hoffman, the chair of the DINO committee, called Heredia “unqualified” and cited her response to the sober living homes scandal and the agency’s issues with its procurement code in his own lengthy statement.

“We look forward to Katie Hobbs sending us a sensible leader that will be able to rein in the abuse that has occurred at AHCCCS,” Hoffman said in his statement.

Will Humble, the executive director of the Arizona Public Health Association and a former director of the Department of Health Services, told the Yellow Sheet Report before Heredia’s resignation was announced that stakeholders largely supported her nomination and enjoyed working with her.

Jennie Cunico was a longtime employee of ADHS and was appointed director in December 2023 after Hobbs’ first pick to lead the agency, Theresa Cullen, resigned. 

In a post on X, Hoffman attributed Cunico’s withdrawal to “a disastrous one-on-one meeting.”

“During this meeting, Jennifer Cunico double and tripled down on the systemic failures of public health officials during the COVID years, even going so far as to defend policies that even the CDC and WHO have now admitted were wrong and not rooted in science.”