04/06/1995 01:35 PM Senate L&C

           HB  23 REFERRALS INVOLVING DENTAL SERVICES                         
                                                                              
 CHAIRMAN KELLY called the Senate Labor and Commerce Committee                 
 meeting to order at 1:35 p.m. and announced HB 23 to be up for                
 consideration.                                                                
                                                                               
 DARIN MORGAN, Legislative aide to Senator Gary Davis, said HB 23              
 prohibits 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 codifies the ethical concern relating            
 to referrals.  Section 2 prohibits the receipt of compensation by             
 a person or advertisement referring a dental service unless the               
 compensation for referral is disclosed at the time of referral.               
 This will help insure that patients are being referred to a dentist           
 or dental practice as a result of their service.                              
                                                                               
 DR. DAN PITTS, the Alaska Dental Society, explained that the reason           
 for this legislation is because of complaints coming through the              
 Dental Society about the 1-800 dentist referral service doing                 
 referrals without disclosing that the dentist they are referring              
 paid for the advertisement in the yellow pages.  Many times                   
 patients would be referred to the wrong kind of dentist.                      
                                                                               
 The American Dental Society feels it is unethical for dentists to             
 receive compensation for referring to another dentist, a practice             
 that is called "fee splitting."                                               
                                                                               
 SENATOR SALO asked if that also held true for a dentist referring             
 a patient to an oral surgeon or an orthodontist.  He said that was            
 correct.                                                                      
                                                                               
 Number 127                                                                    
                                                                               
 SENATOR MILLER moved to pass HB 23 from committee with individual             
 recommendations.  There were no objections and it was so ordered.