Legislature(2013 - 2014)CAPITOL 106

02/19/2013 03:00 PM House HEALTH & SOCIAL SERVICES


Download Mp3. <- Right click and save file as

Audio Topic
03:00:38 PM Start
03:01:42 PM Presentation: Tribal Behavioral Health Directors Committee
03:53:42 PM Presentation: Alaska State Hospital and Nursing Homes Association
04:39:11 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentations: TELECONFERENCED
- by Tribal Behavioral Health Directors Committee
- Alaska Health Industry & Community Benefits,
by Alaska State Hospital and Nursing Homes
Assoc. (ASHNHA)
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                       February 19, 2013                                                                                        
                           3:00 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Pete Higgins, Chair                                                                                              
Representative Wes Keller, Vice Chair                                                                                           
Representative Benjamin Nageak                                                                                                  
Representative Lance Pruitt                                                                                                     
Representative Lora Reinbold                                                                                                    
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Paul Seaton                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: TRIBAL BEHAVIORAL HEALTH DIRECTORS COMMITTEE                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION:   ALASKA   STATE   HOSPITAL   AND   NURSING   HOMES                                                               
ASSOCIATION                                                                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TINA WOODS, Chair                                                                                                               
Tribal Behavioral Health Directors (TBHD)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions during a                                                                
PowerPoint presentation titled, "Tribal Behavioral Health                                                                       
Directors Committee (TBHDC)."                                                                                                   
                                                                                                                                
CHANDA ALOYSIUS, Vice Chair                                                                                                     
Tribal Behavioral Health Directors (TBHD)                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified  and answered questions  during a                                                             
PowerPoint   presentation  titled,   "Tribal  Behavioral   Health                                                               
Directors Committee (TBHDC)."                                                                                                   
                                                                                                                                
JANICE HAMRICK                                                                                                                  
SouthEast Alaska Regional Health Consortium                                                                                     
Sitka, Alaska                                                                                                                   
POSITION  STATEMENT:     Answered  questions  during   the  TBHDC                                                             
presentation.                                                                                                                   
                                                                                                                                
MIKE POWERS, CEO                                                                                                                
Fairbanks Memorial Hospital                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Testified  and answered questions  during a                                                             
PowerPoint  presentation titled  "Overview of  Alaska's Hospitals                                                               
and Nursing Homes.                                                                                                              
                                                                                                                                
LAURIE DOTAS                                                                                                                    
Prestige Care, Inc.                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified  and answered questions  during a                                                             
PowerPoint  presentation titled  "Overview of  Alaska's Hospitals                                                               
and Nursing Homes.                                                                                                              
                                                                                                                                
ANDREW MAYO, MD                                                                                                                 
North Star Behavioral Health                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified  and answered questions  during a                                                             
PowerPoint  presentation titled  "Overview of  Alaska's Hospitals                                                               
and Nursing Homes.                                                                                                              
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:00:38 PM                                                                                                                    
                                                                                                                                
CHAIR PETE  HIGGINS called the  House Health and  Social Services                                                             
Standing   Committee    meeting   to    order   at    3:00   p.m.                                                               
Representatives Higgins,  Reinbold, and Tarr were  present at the                                                               
call  to  order.   Representatives  Pruitt,  Nageak,  and  Keller                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^Presentation: Tribal Behavioral Health Directors Committee                                                                   
   Presentation: Tribal Behavioral Health Directors Committee                                                               
                                                                                                                              
3:01:42 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  announced that the  first order of  business would                                                               
be  a  presentation by  the  Tribal  Behavioral Health  Directors                                                               
committee.                                                                                                                      
                                                                                                                                
3:02:29 PM                                                                                                                    
                                                                                                                                
TINA  WOODS, Chair,  Tribal Behavioral  Health Directors  (TBHD),                                                               
said   that   she   was  with   the   Aleutian-Pribilof   Islands                                                               
Association, and  that she was  originally from St.  Paul Island.                                                               
Directing  attention  to  the  PowerPoint  presentation,  "Tribal                                                               
Behavioral Health  Directors Committee,"  she pointed to  slide 1                                                               
and  shared that  the Behavioral  Health Directors  Committee was                                                               
created in  2005, as part  of the  Tribal Health System,  and was                                                               
approved  by  the  Alaska  Native  Health Board  in  2008.    She                                                               
reported that  there were 24  members from throughout  the state,                                                               
and they met quarterly.  She  noted that there were 800 employees                                                               
in the Tribal  Behavioral Health system, offering  both rural and                                                               
urban services.                                                                                                                 
                                                                                                                                
3:04:16 PM                                                                                                                    
                                                                                                                                
CHANDA ALOYSIUS,  Vice Chair, Tribal Behavioral  Health Directors                                                               
(TBHD), said that  she was an Athabascan Indian  and Yupik Eskimo                                                               
from  Holy Cross.   She  spoke about  slide 3,  "Statewide Tribal                                                               
Behavioral Health Services,"  and said that some  of the services                                                               
were  provided through  State of  Alaska grants,  private grants,                                                               
and  funding  from  the  Indian  Health  Service  (IHS).    These                                                               
providers  offered  a  wide  range  of  services  and  trainings,                                                               
including outpatient, group  therapy, prevention and intervention                                                               
with  suicide,  trauma   based  training,  residential  treatment                                                               
programing,  family  wellness   warriors,  and  statewide  crisis                                                               
response.                                                                                                                       
                                                                                                                                
MS. WOODS directed  attention to slide 4,  "The Behavioral Health                                                               
Aide Model," explaining that this  model was federally recognized                                                               
through  the  Community Health  Aide  Program.   She  noted  that                                                               
currently there were  134 Behavioral Health aides  in Alaska with                                                               
a variety  of certifications and  trainings for a broad  range of                                                               
behavioral health  services.  She emphasized  that the behavioral                                                               
health aides  kept individuals out  of the  residential treatment                                                               
facilities,  and  that  often,  the  aides  were  raised  in  the                                                               
communities for which they provided services.                                                                                   
                                                                                                                                
3:08:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NAGEAK commented  that  many  people with  mental                                                               
health problems were sent away,  and the communities had asked to                                                               
bring these  people back to  the community.   He shared  that, in                                                               
order for those people to heal,  they needed to be around family.                                                               
He pointed  out that  there were  no centers  in rural  areas for                                                               
mental health  patients.  He  declared that a change  was evident                                                               
in the patients when they were allowed to come home.                                                                            
                                                                                                                                
3:10:06 PM                                                                                                                    
                                                                                                                                
MS.  WOODS  moved  on  to  slide 5,  "The  Alaska  Tribal  Health                                                               
System,"  which pinpointed  the  behavioral  health aides  around                                                               
Alaska.   She expressed her agreement  with Representative Nageak                                                               
that  facilities which  were culturally  responsive needed  to be                                                               
built; however, while each organization  was looking for funding,                                                               
some  organizations were  still  trying to  build basic  clinics.                                                               
She  moved on  to  slide  6, "How  does  the  State benefit  from                                                               
working with  Tribal Behavioral  Health?"   She pointed  out that                                                               
the State  of Alaska was  eligible for 100  percent reimbursement                                                               
from  the   federal  government  for  Tribal   Health  Behavioral                                                               
provided services  statewide.   She stated  her pride  that these                                                               
services were offered in a culturally responsive way.                                                                           
                                                                                                                                
3:11:58 PM                                                                                                                    
                                                                                                                                
MS.  ALOYSIUS pointed  out that  the  Federal Medical  Assistance                                                               
Percentage was cost  neutral to the State of Alaska.   She stated                                                               
that  the behavioral  health aides,  working in  partnership with                                                               
psychologists,  clinicians,  and  psychiatrists,  did  help  keep                                                               
people in  the village  and out  of the  emergency rooms  and in-                                                               
patient  units  in   urban  areas.    She   emphasized  that  the                                                               
behavioral  health  aide was  often  the  sole behavioral  health                                                               
provider in a village.                                                                                                          
                                                                                                                                
3:13:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked if  e-medicine  or  face to  face                                                               
technology were used to help reduce costs.                                                                                      
                                                                                                                                
3:13:53 PM                                                                                                                    
                                                                                                                                
MS. ALOYSIUS replied that although  some facilities were equipped                                                               
for video conferencing,  the cost of the facilities,  the lack of                                                               
bandwidth, and  the interruptions  from weather were  all factors                                                               
to overcome.   She detailed  that even though there  was training                                                               
for many of  the providers outside the village,  they still often                                                               
did  not understand  the difficulty  for obtaining  resources and                                                               
medications in the villages.                                                                                                    
                                                                                                                                
3:15:21 PM                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS  asked  if  the behavioral  health  aide  and  the                                                               
community health aide were the same.                                                                                            
                                                                                                                                
MS. WOODS replied that it was the same model.                                                                                   
                                                                                                                                
CHAIR HIGGINS asked if this was the same person in a village.                                                                   
                                                                                                                                
MS.  ALOYSIUS,  in  response,  said  that  these  were  different                                                               
people.  She explained that  the behavioral health aide model was                                                               
based  on  that  of  the  community health  aide,  but  that  the                                                               
behavioral health  aide was a para-professional,  and was usually                                                               
Native Alaskan from that same village.                                                                                          
                                                                                                                                
3:16:19 PM                                                                                                                    
                                                                                                                                
MS.  WOODS,  in   response  to  Chair  Higgins,   said  that  the                                                               
behavioral health  aide training was given  throughout the state,                                                               
including the University of Alaska Fairbanks.                                                                                   
                                                                                                                                
3:16:48 PM                                                                                                                    
                                                                                                                                
JANICE HAMRICK,  SouthEast Alaska Regional Health  Consortium, in                                                               
response to  Chair Higgins, said  that training was  done through                                                               
[indisc] and through essential learning in the community.                                                                       
                                                                                                                                
3:17:34 PM                                                                                                                    
                                                                                                                                
MS.  WOODS  commented  on  slide  7,  "Tribal  Behavioral  Health                                                               
Directors  Committee Currant  Priorities," and  listed the  three                                                               
priorities for  the current  year:  Access  to Care,  Shortage in                                                               
Services,  and  State  Requirements.    She  explained  slide  8,                                                               
"Priority #1:  Access to Care,"  and stated that there  were many                                                               
barriers  for an  individual when  entering treatment,  including                                                               
discussion of personal issues with  a stranger.  She relayed that                                                               
there were  even more  issues for  the Alaska  Native population.                                                               
She pointed out that there was  a high rate of social issues, but                                                               
a low utilization  of mental health services.   She remarked that                                                               
the  behavioral health  aide program  worked because  individuals                                                               
were  comfortable   speaking  with   a  person  from   their  own                                                               
community.   She  declared that  the documentation  requirements,                                                               
which  were culturally  invasive and  daunting, resulted  in many                                                               
Alaska Native elders  not seeking services.  She  said there were                                                               
5-8  hours  of   paperwork  to  process  prior   to  the  initial                                                               
individual  therapy session  and that  this was  a huge  barrier.                                                               
She  stated   that  the  venue   requirements  did   not  support                                                               
culturally  responsive options  such as  in-home assessments,  as                                                               
the elder  had to come  to the clinic  for service.   She pointed                                                               
out that there was not the  ability to bill for reimbursement for                                                               
behavioral health aide services.                                                                                                
                                                                                                                                
3:21:14 PM                                                                                                                    
                                                                                                                                
MS.  ALOYSIUS stated  that it  required  courage to  walk into  a                                                               
service center and  ask for help, and that  "when they're greeted                                                               
with a  binder of information  thicker than the books  behind you                                                               
on your  shelf, it's a  barrier in itself."   She pointed  to the                                                               
importance  of face  to face  interaction for  understanding, and                                                               
that  it was  important for  Alaska  Native people  to know  "why                                                               
they're  hurting, in  their hearts,  and in  their minds,  and in                                                               
their bodies."   She  emphasized that it  was necessary  to bring                                                               
wellness to  that level in  the communities, and to  simplify the                                                               
documentation, or  Alaska would  continue to lead  the nationwide                                                               
indicators for suicide, substance use, and sexual assault.                                                                      
                                                                                                                                
MS.  ALOYSIUS,  in  response  to Chair  Higgins,  said  that  the                                                               
documentation  was  for  the State  of  Alaska's  new,  extensive                                                               
Medicaid  regulations.   She said  it  could take  four to  eight                                                               
hours to complete  the documents, and only then  could they begin                                                               
the assessments.                                                                                                                
                                                                                                                                
3:22:55 PM                                                                                                                    
                                                                                                                                
MS. WOODS said  that often people would not  return after sitting                                                               
through lengthy  paperwork.  She  asked that the State  of Alaska                                                               
offer  another   category  for  service,  a   brief  intervention                                                               
category.  She shared that  there was currently a one-time crisis                                                               
intervention, and she suggested  allowing a culturally responsive                                                               
intervention to individuals  in order to build  a relationship of                                                               
trust for engagement with the system.                                                                                           
                                                                                                                                
3:24:11 PM                                                                                                                    
                                                                                                                                
MS.  ALOYSIUS moved  on to  slide  9, "Priority  #2: Shortage  in                                                               
Services,"  and  offered  an  anecdote  about  the  shortage  for                                                               
statewide crisis  response.  She  declared that it  was important                                                               
for the  State of Alaska to  partner with the villages,  in order                                                               
to  know the  community  leaders  for response  to  crises.   She                                                               
pointed out that providers get  compassion fatigue, but there was                                                               
not anyone  to relieve  them.   She asked that  the state  have a                                                               
fund to support necessary travel  for crisis response.  She asked                                                               
who  would  respond if  there  was  an  incident similar  to  the                                                               
shooting  incidences  in  the  schools   in  the  Lower  48,  and                                                               
suggested  that  a   reasonable,  responsible,  simple  emergency                                                               
response plan be developed.                                                                                                     
                                                                                                                                
3:27:32 PM                                                                                                                    
                                                                                                                                
MS.  ALOYSIUS stated  that Alaska  had a  shortage of  providers,                                                               
especially in  the rural areas.   As there are no  resources in a                                                               
village, a professional fills many  roles, and they get no relief                                                               
from  all the  requirements  for documentation.    She asked  for                                                               
state help with loan repayments for service in rural villages.                                                                  
                                                                                                                                
3:29:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NAGEAK shared his story  for the difficulty to the                                                               
loss of a loved one by suicide.                                                                                                 
                                                                                                                                
3:33:28 PM                                                                                                                    
                                                                                                                                
MS. ALOYSIUS asked the committee  to continue to seek funding for                                                               
follow up programs.                                                                                                             
                                                                                                                                
3:34:26 PM                                                                                                                    
                                                                                                                                
MS. ALOYSIUS shared slide 10,  "Priority #3: State Requirements,"                                                               
and the need  for balance between provision of  a quality service                                                               
and accountability.   She said that the  new Medicaid regulations                                                               
had an  unfunded mandate for  all behavioral health  providers to                                                               
receive accreditation from certain  recognized associations.  She                                                               
offered  a personal  anecdote regarding  the  accreditation of  a                                                               
small clinic in her district.                                                                                                   
                                                                                                                                
3:37:01 PM                                                                                                                    
                                                                                                                                
MS. WOODS  indicated slide 10,  and suggested that  an Integrated                                                               
Healthcare  Structure  would   encourage  the  integration  among                                                               
behavioral  health and  primary  care, as  the current  structure                                                               
prevented billing  options for behavioral  health in  the primary                                                               
care setting.                                                                                                                   
                                                                                                                                
3:38:27 PM                                                                                                                    
                                                                                                                                
MS. ALOYSIUS continued the discussion  of slide 10, and explained                                                               
that the mandated  electronic data base system used  by the State                                                               
of Alaska did not interface  with other electronic health records                                                               
systems.                                                                                                                        
                                                                                                                                
3:40:18 PM                                                                                                                    
                                                                                                                                
MS. ALOYSIUS,  in response to Representative  Reinbold, explained                                                               
that the Health Information Technology  for Economic and Clinical                                                               
Health (HITECH)  Act was a  mandated federal act for  health care                                                               
systems  to have  a  certified electronic  medical  record.   She                                                               
explained that  this rewarded organizations with  funding for the                                                               
prompt integration of electronic  medical records, which included                                                               
specific certification requirements.                                                                                            
                                                                                                                                
3:41:13 PM                                                                                                                    
                                                                                                                                
MS. WOODS  presented slide 11,  "In Summary" and stated  that the                                                               
Tribal   Behavioral   Health   Directors   Committee   maintained                                                               
partnerships  with the  State  of Alaska  and  the Alaska  Mental                                                               
Health  Trust Authority  for a  variety of  items.   She declared                                                               
that it  was an  underfunded system,  and that  behavioral health                                                               
was  "always  the last  to  be  considered  for anything."    She                                                               
explained  that  the  regional   health  organizations  were  all                                                               
different,  and  had  different   operational  approaches.    She                                                               
emphasized  that behavioral  health was  the root  of the  entire                                                               
mind, body, and spirit.                                                                                                         
                                                                                                                                
3:42:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  if  the request  for funding  had                                                               
been through the Department of Health and Social Services.                                                                      
                                                                                                                                
MS.  WOODS   explained  that  that   there  were  areas   in  the                                                               
presentation  where support  had been  requested.   She described                                                               
the "state plan  amendment" which would create  billing codes for                                                               
behavioral  health  aide services,  as  these  services were  not                                                               
currently admissible for billing.   She stated that this had been                                                               
in discussion since 2008, and  noted that this would resolve some                                                               
of  the  priority  issues,   which  included  brief  intervention                                                               
therapy instead of complete assessments.                                                                                        
                                                                                                                                
3:44:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  if  these  were  the  diagnostic                                                               
codes, if  the Patient Protection  and Affordable Care  Act would                                                               
have  any effect,  and when  would the  Centers for  Medicare and                                                               
Medicaid Services (CMS) act on this.                                                                                            
                                                                                                                                
3:45:11 PM                                                                                                                    
                                                                                                                                
MS.  ALOYSIUS, in  response, stated  that these  diagnostic codes                                                               
had been  sent to  CMS by  the State  of Alaska,  but she  had no                                                               
knowledge of  its current  status.  She  opined that  the Patient                                                               
Protection  and Affordable  Care  Act would  have  no bearing  on                                                               
this.                                                                                                                           
                                                                                                                                
3:46:09 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS asked who funded the 800 employees.                                                                               
                                                                                                                                
MS. ALOYSIUS replied  that it was primarily funded  by the Indian                                                               
Health  Services (IHS),  but  there were  also  some private  and                                                               
State of Alaska grant funds.                                                                                                    
                                                                                                                                
3:46:36 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS expressed his understanding  that, for something to                                                               
work, the villages had to endorse and accept it.                                                                                
                                                                                                                                
3:47:23 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:53:35 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS brought the committee back to order at 3:53 p.m.                                                                  
                                                                                                                                
^Presentation:   Alaska   State   Hospital  and   Nursing   Homes                                                             
Association                                                                                                                   
     Presentation: Alaska State Hospital and Nursing Homes                                                                  
                          Association                                                                                       
                                                                                                                              
3:53:42 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  announced that the  final order of  business would                                                               
be a presentation  by the Alaska State Hospital  and Nursing Home                                                               
Association.                                                                                                                    
                                                                                                                                
3:54:10 PM                                                                                                                    
                                                                                                                                
MIKE  POWERS, CEO,  Fairbanks Memorial  Hospital, stated  that he                                                               
represented a community hospital  with an attached long-term care                                                               
facility, a common relationship for  continuum of care in Alaska.                                                               
He lauded the long-term care programs in Alaska.                                                                                
                                                                                                                                
3:57:22 PM                                                                                                                    
                                                                                                                                
MR.  POWERS,   offering  a  PowerPoint,  "Overview   of  Alaska's                                                               
Hospitals  and Nursing  Homes,"  directed attention  to slide  3,                                                               
"Alaska  is Beyond  Rural  when compared  to  other States,"  and                                                               
pointed out  the staggering difference  of bed density  in Alaska                                                               
compared to  most other states.   He explained that this  lack of                                                               
beds brought difficulties which  included getting patients to the                                                               
hospital during  the golden  hour, recruiting  to the  state, and                                                               
creating  centers of  excellence.    He declared  a  need, and  a                                                               
challenge,  for  Alaska  to recruit  highly  trained,  certified,                                                               
competent, skilled providers with high technological training.                                                                  
                                                                                                                                
3:59:30 PM                                                                                                                    
                                                                                                                                
MR.  POWERS  indicated slide  4,  "Alaska  has 40  Hospitals  and                                                               
Nursing Homes," which listed the membership of the association.                                                                 
                                                                                                                                
4:00:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  about the  shortage  of  medical                                                               
personnel and  asked if there  were any teaching  institutions in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. POWERS  identified the Washington, Wyoming,  Alaska, Montana,                                                               
and Idaho  (WWAMI) collaborative  medical school program  and its                                                               
relationship  with  Providence  Alaska  Medical  Center  and  the                                                               
University of Alaska.  He said  that outlying areas of Alaska had                                                               
area health education centers associated with medical schools.                                                                  
                                                                                                                                
4:01:49 PM                                                                                                                    
                                                                                                                                
LAURIE DOTAS,  Prestige Care, Inc.,  said that the  nursing homes                                                               
were instrumental  for training  nurses and nurse's  aides during                                                               
their clinical  rotations, and this participation  would grow the                                                               
workforce.                                                                                                                      
                                                                                                                                
4:02:17 PM                                                                                                                    
                                                                                                                                
ANDREW  MAYO, MD,  North Star  Behavioral Health,  said that  his                                                               
clinic had affiliations with 12  higher education institutions in                                                               
many disciplines.                                                                                                               
                                                                                                                                
4:03:15 PM                                                                                                                    
                                                                                                                                
MR.  POWERS  said that  these  partnerships  were the  most  cost                                                               
effective  way to  recruit  during the  building  of an  academic                                                               
center.    He moved  on  to  slide 5,  "Health  Care  is a  Major                                                               
Employer  in Alaska,"  which indicated  the growth  opportunities                                                               
for health care  in Alaska, currently about 31,000  jobs.  Noting                                                               
slide 6,  "Half of all Health  Care Employment is in  Hospitals &                                                               
Nursing  Homes," he  said that  physicians, outpatient  care, and                                                               
home health  programs were  all important.   Explaining  slide 7,                                                               
"Health care  employment is throughout  the State," he  noted the                                                               
challenge for assuring appropriate  certifications for a level of                                                               
competence to all Alaskans.                                                                                                     
                                                                                                                                
4:05:58 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS reflected  that the health care  profession was the                                                               
second  or third  largest employer  in the  State of  Alaska, and                                                               
expressed his agreement  with Mr. Powers that health  care was an                                                               
economic anchor in the state.                                                                                                   
                                                                                                                                
4:06:42 PM                                                                                                                    
                                                                                                                                
MR.  POWERS   reviewed  slide  8,   "Alaska  Costs   Compared  to                                                               
Comparison States," and stated that  the cost of living in Alaska                                                               
was  30 percent  higher than  the U.S.,  and that  hospital costs                                                               
were 38 percent  higher.  He attributed this to  the higher labor                                                               
costs for  hard to recruit  positions.   He spoke about  a recent                                                               
training program for surgical nurses in Alaska.                                                                                 
                                                                                                                                
4:07:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked who were the  comparison states in                                                               
slide 8.                                                                                                                        
                                                                                                                                
MR. POWERS replied that this was the Northwest rural areas.                                                                     
                                                                                                                                
MR. POWERS said  that rotating travelling nurses  into Alaska was                                                               
a good way to gauge interest for permanent positions.                                                                           
                                                                                                                                
4:09:08 PM                                                                                                                    
                                                                                                                                
MR. POWERS moved on to slide  9, "Cost Drivers Impacting the Cost                                                               
of Care in Alaska."                                                                                                             
                                                                                                                                
4:09:29 PM                                                                                                                    
                                                                                                                                
MS. DOTAS, in  reference to slide 9, stated that  her company was                                                               
owned  and operated  by  a  company in  the  Lower  48, and  that                                                               
Prestige  Care was  its only  Alaska center.   She  expressed her                                                               
envy  for  competitors in  the  Lower  48  for free  shipping  of                                                               
equipment, food,  and other products.   She stated that  this did                                                               
impact costs in Alaska.                                                                                                         
                                                                                                                                
4:10:33 PM                                                                                                                    
                                                                                                                                
DR. MAYO voiced  his support for the military  population, but he                                                               
pointed  out that  this was  often a  transient population  which                                                               
affected recruiting  and hiring.   He  offered an  anecdote about                                                               
the high cost of food in Alaska.                                                                                                
                                                                                                                                
4:12:05 PM                                                                                                                    
                                                                                                                                
MR.  POWERS considered  slide 10,  "Alaska Pays  more for  health                                                               
care practitioners  than 8 comparison  state," which  graphed the                                                               
state wage  comparisons between Alaska and  other western states,                                                               
and reflected  that Alaska wages  were 20 percent above  the U.S.                                                               
average.                                                                                                                        
                                                                                                                                
4:12:45 PM                                                                                                                    
                                                                                                                                
MR. POWERS  commented on slide  11, "Hospital must serve  all who                                                               
need  care,"  stating that  health  care  finance "is  a  strange                                                               
beast" with  the complexity of  uncompensated care.   He reported                                                               
that although  everyone who came  to the emergency  room received                                                               
care, the  cost for any  uncompensated care was shifted  to other                                                               
payers.    He   declared  that  the  health   care  industry  was                                                               
supportive of  Medicaid expansion,  as more than  40,000 Alaskans                                                               
would  be covered  in  the next  10 years,  it  would bring  $1.1                                                               
billion of federal funding to  Alaska, $1.2 billion of additional                                                               
salaries  in  Alaska,  and $2.5  billion  of  increased  economic                                                               
activity.  He  recognized the possibility for the  future loss of                                                               
federal sharing.  He noted that  there had been suggestions for a                                                               
co-pay system,  so that patients  would have "skin in  the game."                                                               
He declared that  the Medicaid expansion could  have a tremendous                                                               
economic benefit for the state.                                                                                                 
                                                                                                                                
4:15:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked if he  would advocate for  a copay                                                               
system and for what percentage.                                                                                                 
                                                                                                                                
MR. POWERS  expressed his agreement  with a copay system,  and he                                                               
suggested  that  it be  "some  kind  of  tiered mechanism."    He                                                               
established  that   this  would  offer  a   reasonable  sense  of                                                               
accountability.                                                                                                                 
                                                                                                                                
4:15:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  offered her belief that  a co-pay system                                                               
would make people show up.                                                                                                      
                                                                                                                                
4:16:59 PM                                                                                                                    
                                                                                                                                
MR. POWERS  called attention to  slide 12, "2011  distribution of                                                               
Hospital  Charges by  Primary  Pay Source,"  and  stated that  32                                                               
percent  of   payments  came  from  Medicare,   20  percent  from                                                               
Medicaid,  30 percent  from commercial  insurance,  and about  17                                                               
percent from self-pay.                                                                                                          
                                                                                                                                
4:17:32 PM                                                                                                                    
                                                                                                                                
MR.  POWERS offered  a snapshot  of Fairbanks  Memorial Hospital,                                                               
slide 13,  "Fairbanks Memorial Hospital,"  and slide 14,  "Who Do                                                               
We Serve."   He  stated that  the hospital  was a  sole community                                                               
provider, with a close relationship  with the Native and military                                                               
communities,  and that  the majority  of its  patients came  from                                                               
within a 30  mile radius.  He said the  top diagnoses were normal                                                               
deliveries, psychosis, and alcohol.                                                                                             
                                                                                                                                
4:19:26 PM                                                                                                                    
                                                                                                                                
MR. POWERS concluded with slide  15, "Economic Impact," slide 16,                                                               
"Fairbanks  Memorial Hospital,"  and slide  17, "Going  Forward."                                                               
He  reported that  the  hospital had  1350  employees, with  $107                                                               
million  in  salary  and  benefits, and  $360  million  in  gross                                                               
revenues.   He pointed to  some of the challenges  which included                                                               
the  impact for  niche  providers,  chronic inebriates,  assisted                                                               
living, and adolescent behavioral health  services.  He noted the                                                               
sources   of   pride  to   include   the   native  and   military                                                               
partnerships, and the recruitment of  70 physicians in the last 6                                                               
years.                                                                                                                          
                                                                                                                                
4:22:17 PM                                                                                                                    
                                                                                                                                
DR. MAYO  introduced the North  Star Behavioral  Health facility,                                                               
slide 18, and slide 19, "Who  do we Serve," reporting that it was                                                               
a 76  bed acute facility, with  the only child and  preteen acute                                                               
mental health units in Alaska.   He said there were a semi-secure                                                               
level 5  treatment center, and a  locked level 6 unit.   He noted                                                               
that  it was  the  only facility  for  military children  needing                                                               
residential care  in Alaska,  and that  they worked  closely with                                                               
Alaska Psychiatric  Institute (API).   He shared that  30 percent                                                               
of admissions came from outside  the Anchorage Bowl.  He reported                                                               
that  the  primary  diagnoses   were  mood  disorders,  substance                                                               
related   disorders,   post-traumatic    stress   disorder,   and                                                               
developmental disabilities.   He  listed the demographics  of the                                                               
patients, noting  that 48 percent  were Caucasian and  30 percent                                                               
Native Alaskan.                                                                                                                 
                                                                                                                                
4:26:41 PM                                                                                                                    
                                                                                                                                
DR. MAYO assessed slide 20,  "Economic Impact," and reported that                                                               
there were  five facilities, and  the salaries and  benefits were                                                               
about $22 million for 425 part-time  and full time employees.  He                                                               
stated  that  they spent  about  $700,000  in contract  services,                                                               
about $900,000 in  purchased services, and about  $2.3 million in                                                               
supplies, all from local vendors.                                                                                               
                                                                                                                                
4:27:05 PM                                                                                                                    
                                                                                                                                
DR. MAYO explained that the  challenges for the facility included                                                               
nursing   recruitment,  continuity   of   care  with   outpatient                                                               
providers   to   keep  the   recidivism   rate   low,  low   cost                                                               
telemedicine,   specialty   care   populations,   and   effective                                                               
prevention strategies, slide  21.  He expressed his  pride in the                                                               
distribution  of   suicide  prevention  training  plans   in  the                                                               
schools,   the  stability   of   the  medical   staff,  and   the                                                               
scientifically based  and statistically significant  outcome data                                                               
for the children they had in their care.                                                                                        
                                                                                                                                
4:31:35 PM                                                                                                                    
                                                                                                                                
DR. MAYO concluded with slide  22, "Going Forward," and said that                                                               
he foresaw  continued growth in  specialty services,  so children                                                               
could stay  close to their  families, as  well as a  continuum of                                                               
care for adults.   He expressed a desire for  an expansion of the                                                               
telemedicine  program,  continued  recruitment  for  doctors  for                                                               
outpatient  services, and  continued training  and education  for                                                               
mental health issues in Alaska.                                                                                                 
                                                                                                                                
4:32:04 PM                                                                                                                    
                                                                                                                                
MS.  DOTAS introduced  "Prestige  Care," slide  23, and  reported                                                               
that Prestige had  taken over the nursing home  facility in July,                                                               
2009.  She  stated that they were  one of two long  term care and                                                               
sub-acute providers  in Anchorage, slide  24, "Who Do  We Serve."                                                               
She  reported that  97 percent  of the  admissions came  directly                                                               
from acute care,  usually after an injury or acute  illness.  She                                                               
said the  average length of  stay was 946  days, and there  was a                                                               
fine balance  between a medical  facility and  a home.   She said                                                               
they strive to make it a comfortable  place to live.  For the HMO                                                               
and Medicare rehabilitation patients,  the average length of stay                                                               
was 58  days.   She noted  that 85 percent  of the  patients were                                                               
long  term, while  45 percent  of the  residents had  dementia or                                                               
short term impaired cognition.                                                                                                  
                                                                                                                                
4:34:41 PM                                                                                                                    
                                                                                                                                
MS. DOTAS  called attention  to slide  25, "The  Silver Tsunami,"                                                               
and stated that  the senior population in Alaska  would double by                                                               
2020 and would almost triple by  2030.  As most of the facilities                                                               
were already  close to full  occupancy, there  was going to  be a                                                               
bed issue  for long term care.   She pointed out  that 90 percent                                                               
of long term  care service in Alaska was paid  by Medicaid, slide                                                               
26, "Long Term Care."                                                                                                           
                                                                                                                                
4:35:47 PM                                                                                                                    
                                                                                                                                
MS.  DOTAS  briefed  the committee  about  slide  27,  "Residents                                                               
Activities of  Daily Living Levels,"  stating that  most patients                                                               
were admitted after  some sort of traumatic event,  a fracture or                                                               
neurological  event, and  had  not planned  for  admission.   She                                                               
reported that  26 percent of  the patients required  a mechanical                                                               
lift, or a lot  of manpower, to move and take care  of them.  She                                                               
moved  on  to  slide  28,  "Economic  Impact"  and  relayed  that                                                               
Prestige Care employed  144 people, had an  all-time low turnover                                                               
rate of 30  percent, and annual salary and benefit  costs of $8.1                                                               
million, which included the contract  therapy services.  She said                                                               
there were gross revenues of $12.6  million.  She noted that they                                                               
had just  received approval to  add 12 beds,  for a total  of 102                                                               
beds.    She  shared  that   Prestige  Care,  Inc.  had  recently                                                               
purchased the  facility, and  this was the  first time  that this                                                               
facility  had been  owned  and  operated by  the  same firm.  She                                                               
declared that "it had a huge  impact, for my residents and for my                                                               
staff  alike.   It was  a big  day, the  day that  financing went                                                               
through ... to say we own it was a big pride factor."                                                                           
                                                                                                                                
4:37:53 PM                                                                                                                    
                                                                                                                                
MS.  DOTAS  announced  that  Prestige Care  had  won  the  Bronze                                                               
Quality Award  by the American  Health Care Association  in 2012,                                                               
was a  recipient of Mountain-Pacific Quality  Health's Excellence                                                               
in Care & Quality Award, and  was the only five star rated center                                                               
for Quality Ratings, slide 29, "Sources of Pride."                                                                              
                                                                                                                                
4:39:11 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health  and  Social  Services   Standing  Committee  meeting  was                                                               
adjourned at 4:39 p.m.                                                                                                          

Document Name Date/Time Subjects