Legislature(2009 - 2010)CAPITOL 106

02/24/2009 03:00 PM House HEALTH & SOCIAL SERVICES


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Audio Topic
03:04:39 PM Start
03:05:05 PM Presentation: Telemedicine
04:17:11 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Telemedicine - Stuart Ferguson, ANTHC; TELECONFERENCED
Melody Price-Yonts, SEARHC
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                       February 24, 2009                                                                                        
                           3:04 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Herron, Co-Chair                                                                                             
Representative Wes Keller, Co-Chair                                                                                             
Representative John Coghill                                                                                                     
Representative Bob Lynn                                                                                                         
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: TELEMEDICINE                                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MELODY PRICE-YONTS, Division Director                                                                                           
Behavioral Health                                                                                                               
Southeast Alaska Regional Health Consortium (SEARHC)                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented a Power Point and answered                                                                     
questions on the TeleBehavioral Health Program.                                                                                 
                                                                                                                                
STEWART FERGUSON, Ph.D.                                                                                                         
Director of Telehealth                                                                                                          
Alaska Native Tribal Health Consortium (ANTHC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented a Power Point and answered                                                                     
questions on the Alaska Federal Health Care Access Network                                                                      
(AFHCAN) telehealth program.                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:04:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR BOB HERRON  called the House Health  and Social Services                                                             
Standing   Committee    meeting   to    order   at    3:04   p.m.                                                               
Representatives Herron, Keller, Seaton,  and Coghill were present                                                               
at the call  to order.  Representatives Lynn,  Cissna, and Holmes                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^Presentation: Telemedicine                                                                                                   
                                                                                                                                
3:05:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON announced  that the only order  of business would                                                               
be a presentation on Telemedicine.                                                                                              
                                                                                                                                
3:05:58 PM                                                                                                                    
                                                                                                                                
MELODY   PRICE-YONTS,  Division   Director,  Behavioral   Health,                                                               
Southeast  Alaska Regional  Health  Consortium  (SEARHC), gave  a                                                               
Power  Point  presentation   entitled  "SEARHC  Southeast  Alaska                                                               
Regional  Health  Consortium-   TeleBehavioral  Health  Program."                                                               
[Included in  the members packets.]   She stated that  SEARHC had                                                               
been offering the TeleBehavioral Health  program since 2003.  She                                                               
referred  to  slide  3,  "What  is  TeleBehavioral  Health,"  and                                                               
explained  that  it  was  used  to  provide  psychiatric,  mental                                                               
health, and substance  abuse treatment to services  in the remote                                                               
villages  because of  the difficulty  to bring  patients in  from                                                               
remote villages.   She explained that it was supplied  by a video                                                               
signal over  a dedicated phone  line.   She referred to  slide 4,                                                               
"Mission," and said the mission was to                                                                                          
                                                                                                                                
     Expand psychiatric  and behavioral health  services and                                                                    
     related  activities   via  live   videoconferencing  to                                                                    
     remote  villages  to  provide  high-quality  behavioral                                                                    
     health care.                                                                                                               
                                                                                                                                
She stated that, slide 5 "Vision," was for                                                                                      
                                                                                                                                
     A  virtual community  mental health  collaborative that                                                                    
     is decentralized and distributed.   Each site has equal                                                                    
     opportunity  to   contribute  to  other   sites  needs,                                                                    
     working together  as a team  to meet  behavioral health                                                                    
     needs.                                                                                                                     
                                                                                                                                
3:08:26 PM                                                                                                                    
                                                                                                                                
MS.   PRICE-YONTS    explained   that    the   "Videoconferencing                                                               
Components,"   slide  6,   included   cameras,  video   displays,                                                               
microphones, and  speakers.  She  showed slide 7,  "Main camera,"                                                               
and said that  the camera eye could follow movement.   She showed                                                               
slide 8, "The Video display," and  said the display could be used                                                               
with a  television or  flat screen  monitor.   She said  that the                                                               
"Audio Components,"  slide 9, included microphones  and speakers.                                                               
She described  the "Add-on components," slide  10, which included                                                               
a document camera, a VCR or DVD, and an electronic whiteboard.                                                                  
                                                                                                                                
3:09:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked what a document camera was.                                                                         
                                                                                                                                
MS. PRICE-YONTS explained  that a document could  be placed under                                                               
the screen so that  the viewer could see it.   She added that the                                                               
electronic whiteboard served like the old paper easels.                                                                         
                                                                                                                                
3:10:14 PM                                                                                                                    
                                                                                                                                
MS. PRICE-YONTS explained slide  11, "Why TeleBehavioral Health?"                                                               
and stated that it offered year round access to remote areas.                                                                   
                                                                                                                                
3:11:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON asked  if the  cameras  were able  to get  close                                                               
enough to be of use in telepsychiatry.                                                                                          
                                                                                                                                
MS. PRICE-YONTS  agreed that  it was possible  for the  camera to                                                               
view emotions.                                                                                                                  
                                                                                                                                
3:12:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  if the  camera lens  was preset  or                                                               
capable of zoom.                                                                                                                
                                                                                                                                
MS. PRICE-YONTS  camera replied  that the  camera was  capable of                                                               
zoom from either location.                                                                                                      
                                                                                                                                
3:12:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN asked if each person could see the other.                                                                   
                                                                                                                                
MS. PRICE-YONTS said that it was a two way camera.                                                                              
                                                                                                                                
REPRESENTATIVE CISSNA  said that she  had watched a  school board                                                               
meeting with numerous  community groups, and she asked  if it was                                                               
possible to include many groups.                                                                                                
                                                                                                                                
MS.  PRICE-YONTS said  that SEARHC  was designing  an Out-Patient                                                               
treatment program which would include many sites simultaneously.                                                                
                                                                                                                                
3:15:34 PM                                                                                                                    
                                                                                                                                
MS.  PRICE-YONTS  pointed  out  that   slide  12  and  slide  13,                                                               
"TeleBehavioral Health  Services," listed some of  the uses which                                                               
included   psychiatric   services,  mental   health   assessment,                                                               
substance  abuse, psychotherapy  and  prevention  services.   She                                                               
explained that  SEARHC was able  to provide  clinical supervision                                                               
on a continuous basis with the program.                                                                                         
                                                                                                                                
3:17:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked if psychotropic  medication refills,                                                               
listed on slide 12, included new prescriptions.                                                                                 
                                                                                                                                
MS. PRICE-YONTS  said that  both were available.   She  said that                                                               
the  program allowed  SEARHC to  provide continuing  education to                                                               
its field staff.                                                                                                                
                                                                                                                                
3:17:48 PM                                                                                                                    
                                                                                                                                
MS. PRICE-YONTS pointed  to slide 14, "Map  of communities served                                                               
by  Telebehavioral  Health,"  and  named  the  communities  which                                                               
offered  the  program,  including   Skagway,  Hoonah,  Kake,  and                                                               
Hydaburg.                                                                                                                       
                                                                                                                                
3:18:18 PM                                                                                                                    
                                                                                                                                
MS. PRICE-YONTS turned to slide 15, a  graph of "Jan 04 to Dec 05                                                               
TeleBehavioral Health Encounters," and  pointed out the increased                                                               
use of the program.                                                                                                             
                                                                                                                                
3:18:47 PM                                                                                                                    
                                                                                                                                
MS.  PRICE-YONTS referred  to  slide  16, "Telebehavioral  Health                                                               
Program," and stated  that it was designed to  empower the remote                                                               
community and enhance the provider skills in the villages.                                                                      
                                                                                                                                
3:19:11 PM                                                                                                                    
                                                                                                                                
MS.  PRICE-YONTS  moved  to   slide  17,  "Telebehavioral  Health                                                               
Program,  Goals:"  and  indicated  that it  increased  access  to                                                               
Behavioral Health  services, empowered  the local  providers, and                                                               
decreased costs.                                                                                                                
                                                                                                                                
MS. PRICE-YONTS  explained that trainings, peer  review, clinical                                                               
supervision,  and  consultation  were all  designed  to  "Empower                                                               
Village Provider's:" slide 18.                                                                                                  
                                                                                                                                
MS.  PRICE-YONTS directed  attention  to  slide 19,  "Educational                                                               
Programming  to  Village  Providers,"  and  listed  consultation,                                                               
grand  rounds, case  conference,  monthly  seminars, and  special                                                               
programming.                                                                                                                    
                                                                                                                                
3:19:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked  if the program was  effective in the                                                               
early detection  and allowed  people to  stay in  their community                                                               
for treatment.                                                                                                                  
                                                                                                                                
MS. PRICE-YONTS agreed.                                                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON  asked  if   it  had  effectively  reduced                                                               
referrals and crises.                                                                                                           
                                                                                                                                
MS. PRICE-YONTS  said that  her instinct said  yes, but  that she                                                               
did not have any data to support it.                                                                                            
                                                                                                                                
3:22:24 PM                                                                                                                    
                                                                                                                                
MS. PRICE-YONTS turned  to slide 20, "A  Virtual Community Mental                                                               
Health  Collaborative!"  and  explained that  the  community  was                                                               
decentralized and distributed.                                                                                                  
                                                                                                                                
3:22:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA asked if this  program allowed providers to                                                               
do a better job, by removing the emotional isolation.                                                                           
                                                                                                                                
MS. PRICE-YONTS replied  that there was a  virtual talking circle                                                               
for dealing with the vicarious trauma.   She said that SEARHC was                                                               
very cognizant of its providers residing in remote sites.                                                                       
                                                                                                                                
3:24:11 PM                                                                                                                    
                                                                                                                                
MS. PRICE-YONTS  noted that slide  22, "Best Practices  in Video-                                                               
conferencing,"  included tips  for  maintaining  eye contact  and                                                               
appropriate on-camera position.                                                                                                 
                                                                                                                                
MS. PRICE-YONTS explained  slide 23, "Prepare for  the Worst Case                                                               
Scenario,"  and  suggested  to contact  the  person  who  handled                                                               
difficult  technical problems,  designate  a remote  facilitator,                                                               
and develop a  contingency plan for the remote site  and share it                                                               
with the remote facilitator.                                                                                                    
                                                                                                                                
3:25:28 PM                                                                                                                    
                                                                                                                                
MS.  PRICE-YONTS  concluded  her   Power  Point  with  slide  24,                                                               
"Contact Information," which listed contact personnel at SEARHC.                                                                
                                                                                                                                
3:26:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL asked for  her comments on the performance                                                               
of the dedicated lines and the infrastructure.                                                                                  
                                                                                                                                
MS. PRICE-YONTS  said that  the T-1 lines  in all  locations were                                                               
all doing well.                                                                                                                 
                                                                                                                                
3:26:58 PM                                                                                                                    
                                                                                                                                
STEWART FERGUSON,  Ph.D., Director  of Telehealth,  Alaska Native                                                               
Tribal  Health  Consortium  (ANTHC),  offered  to  give  a  quick                                                               
demonstration of  the Alaska Federal  Health Care  Access Network                                                               
(AFHCAN) telehealth system.  He  said that SEARHC was a statewide                                                               
leader.   He  said that  the AFHCAN  system was  designed to  use                                                               
fifth grade language, so that  it could be easily translated into                                                               
foreign languages.                                                                                                              
                                                                                                                                
3:28:53 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  said that he  would use Co-Chair  Keller's personal                                                               
data  to fill  in  the  example.   [He  connected  to an  on-line                                                               
database.]                                                                                                                      
                                                                                                                                
3:30:51 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON reflected that the  demonstration connection was not                                                               
working properly.  [He disconnected the demonstration.]                                                                         
                                                                                                                                
3:32:57 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON  presented a  Power  Point  titled "The  Impact  of                                                               
Telehealth in  Alaska," [Included in the  members packets.] which                                                               
showed a 7 year retrospective of the program.                                                                                   
                                                                                                                                
MR. FERGUSON referred  to slide 2, "AFHCAN  Telehealth," and said                                                               
that this  was a  federally funded project  begun about  10 years                                                               
ago, and designed to create  telehealth solutions for the federal                                                               
partners in Alaska.                                                                                                             
                                                                                                                                
3:33:56 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON   referred  to   slide  3,   "Telemedicine..."  and                                                               
explained that telehealth defined  a use of telecommunications to                                                               
provide health care.                                                                                                            
                                                                                                                                
MR.  FERGUSON  pointed to  slide  4,  "Case Originated...,"  that                                                               
pictured  the origination  of a  case as  capturing the  data and                                                               
sending it.   He showed  in slide  5, "...Case received,"  that a                                                               
consultant can review the data and respond.                                                                                     
                                                                                                                                
3:34:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER asked if there was any necessary training.                                                                      
                                                                                                                                
MR. FERGUSON agreed  that it was best to have  someone trained to                                                               
use the medical  devices, as well as the software.   He said that                                                               
the use of the devices was straightforward.                                                                                     
                                                                                                                                
CO-CHAIR HERRON  asked how  many AFHCAN carts  there were  in the                                                               
state.                                                                                                                          
                                                                                                                                
MR. FERGUSON said that there were about 400.                                                                                    
                                                                                                                                
3:35:54 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON pointed  to  slide  6 "A  Primary  Care Tool,"  and                                                               
explained that Alaska  focused more on primary  care whereas, the                                                               
lower  48 focused  more  on specialty  care.   He  noted that  75                                                               
percent  of the  Alaska medical  cases originated  with a  health                                                               
aide and  concluded with a family  physician.  He listed  ear and                                                               
heart   disease,  respiratory   illness,   vital  signs,   dental                                                               
problems,  and  trauma  as  the   most  often  used  cameras  and                                                               
monitors.                                                                                                                       
                                                                                                                                
3:36:42 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON  moved  on  to   slide  7,  "ANMC  Departments  now                                                               
accepting Telehealth  cases, " which listed  specialists who used                                                               
the AFHCAN program,  including cardiologists, dermatologists, and                                                               
urologists.                                                                                                                     
                                                                                                                                
3:37:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  asked  to clarify  that  the  consultants  were                                                               
doctors in urban areas.                                                                                                         
                                                                                                                                
MR. FERGUSON,  in response to  Co-Chair Keller, said  that health                                                               
aides  wanted  to  use  the  AFHCAN  technology.    He  said  the                                                               
difficulty was  with process reengineering,  figuring out  how to                                                               
fit  this program  in,  and  then demonstrating  its  value.   He                                                               
opined that the measureable success  was that so many departments                                                               
were now using the system.                                                                                                      
                                                                                                                                
3:37:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  asked  if   there  was  a  communication                                                               
protocol.                                                                                                                       
                                                                                                                                
MR.  FERGUSON replied  that the  AFHCAN program  had standardized                                                               
forms and templates for the information.                                                                                        
                                                                                                                                
REPRESENTATIVE  COGHILL asked  about  the  quick response  action                                                               
issues.                                                                                                                         
                                                                                                                                
MR. FERGUSON  said that a  health aide typically had  a protocol,                                                               
regardless  of  using the  AFHCAN  program.   He  explained  that                                                               
telehealth was  just an additional  tool to capture the  data and                                                               
send it.  He said the most  important thing was for the system to                                                               
work  quickly  and efficiently.    He  reported that  the  AFHCAN                                                               
telehealth program  system was  ready with  three touches  to the                                                               
screen.   He noted that  it was  necessary to call  the recipient                                                               
and alert them to the incoming information.                                                                                     
                                                                                                                                
MR. FERGUSON  explained slide 8, "Telehealth  Cases Created," and                                                               
said that  the majority  of telehealth systems  see a  decline of                                                               
usage because most  people, after seeing a number  of cases, have                                                               
no need  for a consultation.   He  said that this  AFHCAN program                                                               
was  always adding  specialties,  equipment,  and technology,  so                                                               
that the number of users and patients had also increased.                                                                       
                                                                                                                                
3:42:04 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON referred  to slide 9, "Store &  Forward versus Real-                                                               
Time  Telemedicine"  and  explained  that  these  were  different                                                               
tools.   He gave examples  of the  types of procedures  that most                                                               
often  used   "store  &   forward"  procedures,   which  included                                                               
radiology and dermatology.   He also offered  examples for "real-                                                               
time" procedures,  which included  psychiatry and neurology.   He                                                               
explained that the "trick" with  telehealth was to find the right                                                               
tool for the specialty.                                                                                                         
                                                                                                                                
3:42:37 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON explained slide 10,  "Ear Tube Follow Up," and slide                                                               
11 picturing  a bitten lip, which  were both examples for  use of                                                               
the  AFHCAN  program  as a  communication  tool  for  information                                                               
exchange.                                                                                                                       
                                                                                                                                
3:43:40 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  addressed slide 13, "Medicaid  Study," and compared                                                               
the  travel expense  savings to  Medicaid  when telemedicine  was                                                               
used.                                                                                                                           
                                                                                                                                
MR.  FERGUSON   analyzed  slide  14  "Impact   of  Telehealth  on                                                               
Preventing  Patient  Travel,"  and   compared  primary  care  and                                                               
specialty care.   He shared that patient travel  was prevented in                                                               
75 to 80  percent of all specialty care cases,  and in 20 percent                                                               
of all primary cases.                                                                                                           
                                                                                                                                
3:45:21 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  moved to  slide 15,  "Impact of  Preventing Patient                                                               
Travel," and said that the  savings in air travel expenses during                                                               
2007 was about  $3.5 million.  He said that  this did not include                                                               
the  additional  travel  expenses  for lost  work  time,  hotels,                                                               
meals, etc.                                                                                                                     
                                                                                                                                
MR. FERGUSON assessed slide 16,  "Impact of Telehealth on Causing                                                               
Patient  Travel," and  said that  about 8  percent of  telehealth                                                               
cases revealed a necessity for travel  to receive care.  He noted                                                               
that many  of these  cases were  instrumental in  providing early                                                               
treatment and in saving lives.                                                                                                  
                                                                                                                                
3:47:07 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON spoke about slide  17, "Improving Access," and noted                                                               
that it was less expensive to  send a mid level provider, instead                                                               
of  a specialist,  to rural  sites for  screenings.   He gave  an                                                               
example  on slide  18, "Traveling  Audiologist," which  reflected                                                               
the  savings  for  patient  travel to  those  patients  who  were                                                               
waiting to see a specialist.                                                                                                    
                                                                                                                                
3:48:18 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON explained  that slide  19,  "Outcomes," showed  the                                                               
value of the  AFHCAN telehealth program as a  screening tool, and                                                               
he noted that 27 percent of  the patients were screened out after                                                               
the initial visit.                                                                                                              
                                                                                                                                
3:49:15 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON   pointed  to  slide  20,   "Specific  to  Medicaid                                                               
Patients,"  and said  that the  AFHCAN  telehealth program  saved                                                               
travel expenses for 83 percent  of the Medicaid patients, most of                                                               
whom  would have  required a  parent or  guardian to  travel with                                                               
them.                                                                                                                           
                                                                                                                                
3:50:06 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  directed attention to slide  21, "Telehealth Impact                                                               
on Backlogs  and Average  Waiting Times,"  and observed  that the                                                               
wait time had been cut by almost two thirds with telehealth.                                                                    
                                                                                                                                
MR.  FERGUSON offered  slide 22  "Telehealth  Impact on  Extended                                                               
Waiting  Times,   (>  4  months),"   and  revealed   that  AFHCAN                                                               
telehealth  had lowered  the "more  than  four month  appointment                                                               
wait time" from 47 percent of patients to 3 percent.                                                                            
                                                                                                                                
3:52:02 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  furnished slide 24,  "ANMC: Access to  Care," which                                                               
reviewed  the  turnaround  time  for  specialist  response.    He                                                               
reported that  4,457 cases  were reviewed in  a two  year period,                                                               
and that 65 percent were turned  around in the same business day,                                                               
with half of those completed in sixty minutes.                                                                                  
                                                                                                                                
3:53:39 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  commented on slide 25,  "Originating vs. Consultant                                                               
Time,"  which was  a study  of the  consultant response  time for                                                               
more than 8,500 cases.                                                                                                          
                                                                                                                                
MR.  FERGUSON briefed  that slide  26, "Dermatology  CME Visits,"                                                               
explained  how the  AFHCAN telehealth  program  allowed for  more                                                               
patients each year, and dramatically reduced the waiting times.                                                                 
                                                                                                                                
3:56:22 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON  examined  slide 27,  "Provider  Responses,"  which                                                               
listed  provider responses  to AFHCAN  telehealth values,  and he                                                               
noted that  the highest  response, 88  percent, agreed  that this                                                               
program helped the patient communicate with the doctor.                                                                         
                                                                                                                                
3:57:08 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  said that slide  28, "In Development,"  reported on                                                               
new  AFHCAN telehealth  capabilities that  were being  developed,                                                               
which included retina imaging for diabetics.                                                                                    
                                                                                                                                
MR. FERGUSON  discussed slide 29, "New  Consultative Models," and                                                               
shared  a new  care delivery  system  used by  the Alaska  Native                                                               
Medical Center, which referred  all initial consultations through                                                               
the institution instead of through the department.                                                                              
                                                                                                                                
3:59:05 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON showed slide 30,  "Reimbursement is critical for..."                                                               
and he said  that telehealth is a technology, not  a project.  He                                                               
said that the system needed to grow and be sustained.                                                                           
                                                                                                                                
MR.  FERGUSON   noted  on  slide   31,  "Alaska  enjoys   a  very                                                               
supportive..."   that   telehealth    had   a   very   supportive                                                               
reimbursement climate,  especially with Medicaid, in  Alaska.  He                                                               
explained  that AFHCAN  telehealth  relied on  a standard  coding                                                               
system.  He pointed out that  for most doctor visits, the patient                                                               
would  receive  a  complete examination,  and  the  doctor  could                                                               
justify a higher level fee;  whereas, telehealth captured focused                                                               
information that  did not justify a  high level consult fee.   He                                                               
said  that  AFHCAN  telehealth   required  a  large  infusion  of                                                               
technology and training,  especially for the rural  provider.  He                                                               
said that there  was not a reimbursement structure  for the rural                                                               
provider, only for the consultant.                                                                                              
                                                                                                                                
4:01:30 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON spoke about slide  32, "Exporting Alaska Solutions."                                                               
He  said  that  the  AFHCAN  system,  software,  and  carts  were                                                               
developed  and built  in Alaska,  so they  all had  the "Made  in                                                               
Alaska" logo.   He said  that the  system was now  being deployed                                                               
outside Alaska.                                                                                                                 
                                                                                                                                
4:03:44 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON, in  response to  Representative Cissna,  said that                                                               
there  was a  home AFHCAN  telehealth project  in Alaska,  with a                                                               
nurse able to monitor the patients from a central location.                                                                     
                                                                                                                                
4:04:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA asked about the cost savings.                                                                             
                                                                                                                                
MR. FERGUSON explained  that the home telehealth  model was based                                                               
on managing  costs, not on  reimbursement.  He said  that managed                                                               
care systems were interested because of the savings.                                                                            
                                                                                                                                
4:05:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL asked if it  was federal guidelines or the                                                               
state  Medicaid health  plan that  restricted the  aforementioned                                                               
reimbursement issues.  He asked  if these were capital expense or                                                               
payment issues.                                                                                                                 
                                                                                                                                
4:06:30 PM                                                                                                                    
                                                                                                                                
MR.  FERGUSON  replied   that  there  was  a   Medicare  Level  2                                                               
Healthcare Common  Procedure Coding  System (HCPCS)  code, Q3014,                                                               
which allowed for the origination  of a telehealth encounter.  He                                                               
explained  that the  code was  typically for  reimbursement to  a                                                               
videoconference presentation, but he  proposed that the same code                                                               
not be  limited to video, but  also to create a  telehealth case.                                                               
He  qualified  that  people  are paid  for  procedures  that  are                                                               
funded, but that packaging and  sending a telehealth case was not                                                               
funded.                                                                                                                         
                                                                                                                                
REPRESENTATIVE COGHILL said that he  wanted more information.  He                                                               
opined  that the  Medicaid rules  might have  flexibility through                                                               
the state health plan to CMS.                                                                                                   
                                                                                                                                
4:08:34 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON,  in response to  Co-Chair Herron, said  that AFHCAN                                                               
funding came through  Indian Health Services (IHS),  and that IHS                                                               
was budgeting  additional funds to  develop the  AFHCAN interface                                                               
to its  electronic health records.   He noted that  Alaska Native                                                               
corporations  had  spent  more than  $1  million  for  additional                                                               
technology, as opposed to relying on federal funds.                                                                             
                                                                                                                                
4:09:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON asked what was needed to push this along.                                                                       
                                                                                                                                
4:10:11 PM                                                                                                                    
                                                                                                                                
MR. FERGUSON  said that this  was a communication  technology for                                                               
moving health care data to deliver  care.  He said that there was                                                               
a huge  initiative for electronic  health records.  He  said that                                                               
viewing this as a business  model revealed that the reimbursement                                                               
issue was an  incentive and a key component.   He said that there                                                               
was  not  a  need  for  a  lot  of  equipment,  but  a  need  for                                                               
operations.                                                                                                                     
                                                                                                                                
4:12:17 PM                                                                                                                    
                                                                                                                                
MS.  PRICE-YONTS, in  response  to  Representative Coghill,  said                                                               
that  SEARHC  was already  using  electronic  records which  were                                                               
designed to interface with the state system.                                                                                    
                                                                                                                                
4:13:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON asked  if there  was any  money in  the stimulus                                                               
package for telemedicine.                                                                                                       
                                                                                                                                
MR. FERGUSON  said that he  was not aware  of money in  the state                                                               
stimulus package.   He offered  that there was federal  money for                                                               
health information  technology, but that  it was unclear  if that                                                               
would be designated for telehealth.                                                                                             
                                                                                                                                
4:15:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  asked  about  the  incentive  for  a  6  minute                                                               
response.                                                                                                                       
                                                                                                                                
4:16:28 PM                                                                                                                    
                                                                                                                                
MR.   FERGUSON  explained   that  this   was  a   problem-focused                                                               
consultation, which allowed for a  prompt response, and he opined                                                               
that it was not driven by the reimbursement.                                                                                    
                                                                                                                                
4:17:11 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health  and  Social  Services   Standing  Committee  meeting  was                                                               
adjourned at 4:17 p.m.                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
ANTHC - AFHCAN Telehealth v2.ppt HHSS 2/24/2009 3:00:00 PM
telebehavioral health SEARHC.ppt HHSS 2/24/2009 3:00:00 PM