02/07/1995 03:03 PM House HES

 HHESS - 02/07/95                                                              
 Number 676                                                                    
                                                                               
 HB 23: REFERRALS INVOLVING DENTAL SERVICES                                  
                                                                               
 REPRESENTATIVE DAVIS, sponsor of HB 23, stated that this bill was             
 a repeat of a bill that passed out of the HESS Committee and                  
 through the House last year.  He read a sponsor statement into the            
 record:                                                                       
                                                                               
 HB 23 will prohibit the receipt of compensation by a                         
 dentist for referring a person to another dentist or                          
 dental practice.  The American Dental Association Code of                     
 Ethics forbids dentists from profiting from referrals.                        
 This legislation codified the ethical concern relating to                     
 referrals.                                                                    
                                                                               
 In Section 2, the receipt of compensation by a person or                     
 advertisement referring a dental service, is prohibited                       
 unless the compensation of referral is disclosed at the                       
 time of referral.  This legislation will help ensure that                     
 patients are being referred to a dentist or dental                            
 practice as a result of their quality service.                                
                                                                               
 The Alaska Dental Society has had several breeches of                        
 their ethics code and their board has requested this                          
 legislation.  I feel this is an appropriate legislative                       
 function of the Board of Dental Examiners under AS                            
 08.36.315.                                                                    
                                                                               
 Number 784                                                                    
                                                                               
 REPRESENTATIVE DAVIS said that the Alaska Board of Dental Examiners           
 has a number of issues that relate to what the board shall act on.            
 This bill simply adds another section under their jurisdiction.  As           
 indicated, this bill has been introduced by request of the Dental             
 Society and is a result of breaches in their national code of                 
 ethics.  Because of those breaches and technology that has been               
 advanced over the last few years, it is quite timely to have this             
 legislation added to the actions of the board.                                
                                                                               
 Number 849                                                                    
                                                                               
 DR. DAN PITTS, Dentist, testified via teleconference from Soldotna.           
 He said that the Dental Society was receiving complaints from the             
 public, and this legislation is a result of those complaints.  The            
 complaints were the result of members of the public calling dental            
 referral services located in the yellow pages.  Such a business               
 will get a toll-free number or telephone number which is remoted to           
 another town or city out of state.  A large ad is placed in the               
 telephone book which identifies the company as a dental referral              
 service for Alaska.  The referral service then solicits business to           
 perhaps three dentists who want to advertise and receive referrals.           
 The dentists are charged a fee, and if a patient calls the referral           
 service and requests an orthodontist, that patient may simply be              
 sent to a dentist and not an orthodontist.                                    
                                                                               
 MR. PITTS said these referral services mislead people with their              
 advertising.  It appears they are a service which is run by                   
 organized dentistry when, in fact, the service is just a for-profit           
 operation.                                                                    
                                                                               
 Number 968                                                                    
                                                                               
 REPRESENTATIVE BRICE asked if the names of the dentists who violate           
 the code of ethics are made public information.  Dr. Pitts answered           
 that the names are not publicized.                                            
                                                                               
 CO-CHAIR BUNDE asked Dr. Pitts if he felt this legislation would be           
 restrictive of advertisement and good business principles?                    
                                                                               
 DR. PITTS answered that the legislation ensures that the referral             
 service must say, in their advertisements, that the dentists they             
 refer pay for this service.  If this information is disclosed,                
 advertising is in no way limited.  The disclosure of this                     
 information and advertising in general is fully ethical nationwide.           
                                                                               
 Number 1075                                                                   
                                                                               
 CO-CHAIR BUNDE asked if the bill would preclude the current system,           
 or referrals, or would it simply provide for a disclaimer that the            
 referrals are a service purchased by the dentist.  Dr. Pitts said             
 that the latter was true.  He continued that in dentistry, it is              
 unethical to refer a patient to another dentist and then receive a            
 kickback for that referral.  This is called fee-splitting and is              
 also illegal in dentistry statutes.  HB 23 would not effect their             
 system of referrals.  Most dentists will refer patients to a                  
 specialist they feel is the best for the job.                                 
                                                                               
 CO-CHAIR TOOHEY commented that no matter what the name, a kickback            
 is still a kickback.                                                          
                                                                               
 Number 1166                                                                   
                                                                               
 REPRESENTATIVE BRICE moved that HB 23 be passed from committee with           
 the accompanying fiscal notes and individual recommendations.                 
 There being no objection, CO-CHAIR BUNDE stated that the bill was             
 passed.