02/07/2013 01:30 PM Senate LABOR & COMMERCE

               SB  38-EXTEND STATE MEDICAL BOARD                                                                            
                                                                                                                                
1:58:22 PM                                                                                                                    
CHAIR DUNLEAVY announced the consideration of SB 38.                                                                            
                                                                                                                                
1:58:47 PM                                                                                                                    
DAVID  SCOTT, staff  to Senator  Donny Olson,  sponsor of  SB 38,                                                               
said this bill extends the  termination date of the State Medical                                                               
Board  until  June  30,  2020.  This  is  an  eight-member  board                                                               
appointed by the  governor and approved by  the legislature. Five                                                               
members are  physicians, one  is a  physician assistant,  and two                                                               
are public members. This regulatory  board licenses and regulates                                                               
osteopaths,  paramedics,  physicians, physician  assistants,  and                                                               
podiatrists.                                                                                                                    
                                                                                                                                
He noted  that, board  president Ed  Hall, a  representative from                                                               
Legislative Budget and  Audit, and Mr. Habeger  from the commerce                                                               
department were available to answer questions.                                                                                  
                                                                                                                                
2:00:04 PM                                                                                                                    
SENATOR MICCICHE  noted that the  fiscal note referenced  both an                                                               
eight-member  board  and  a five-member  board.  He  asked  which                                                               
number was correct.                                                                                                             
                                                                                                                                
MR.  SCOTT answered  that the  statute says  the board  has eight                                                               
members.  He  deferred further  explanation  to  Mr. Habeger  who                                                               
prepared the fiscal note.                                                                                                       
                                                                                                                                
SENATOR OLSON  clarified that the  State Medical Board  has eight                                                               
members.                                                                                                                        
                                                                                                                                
SENATOR MICCICHE  said the fiscal  note should be  corrected; the                                                               
analysis  describes travel  expenses  and per  diem  for a  five-                                                               
member board and staff.                                                                                                         
                                                                                                                                
2:01:40 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:02:08 PM                                                                                                                    
SENATOR OLSON suggested that Mr.  Harbinger could address Senator                                                               
Micciche's question.                                                                                                            
                                                                                                                                
SENATOR MICCICHE asked if State Medical Board members were paid.                                                                
                                                                                                                                
MR.  SCOTT  answered no;  they  receive  a  travel and  per  diem                                                               
allowance.                                                                                                                      
                                                                                                                                
2:03:18 PM                                                                                                                    
DON  HABEGER, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), agreed to  correct the error in the                                                               
fiscal note.                                                                                                                    
                                                                                                                                
SENATOR MICCICHE asked if member  costs in the $40,000 range were                                                               
typical, because it seemed high.                                                                                                
                                                                                                                                
MR.  HABEGER said  the State  Medical  Board is  unique from  the                                                               
standpoint that  it doesn't  choose to centralize  in one  of the                                                               
major  communities.  The Medical  Board  twice  a year  meets  in                                                               
Anchorage, Fairbanks, and Juneau and  twice a year meets in rural                                                               
communities like  Nome. He  relayed that the  only time  he asked                                                               
the board  to rethink their travel  plans was when they  asked to                                                               
go to Dutch Harbor.                                                                                                             
                                                                                                                                
2:05:25 PM                                                                                                                    
KRIS CURTIS, legislative auditor,  Division of Legislative Audit,                                                               
informed the committee  that the agency conducted  a sunset audit                                                               
of the State Medical Board  during 2012. The audit concluded that                                                               
the  board  was  serving  the public's  interest  by  effectively                                                               
licensing  and  regulating  osteopaths,  paramedics,  physicians,                                                               
physician assistants, and  podiatrists, and recommended extending                                                               
the board's termination  date to June 30, 2020. This  is one year                                                               
less than the  statutory maximum in recognition of  a new finding                                                               
that  the Division  of  Corporations,  Business and  Professional                                                               
Licensing  (DCPBL)  staff  failed to  review  continuing  medical                                                               
education  requirements  in  accordance  with  regulation,  which                                                               
require review of five percent  of licensees during each biannual                                                               
licensing cycle.  DCPBL reviewed  only four percent  of licensees                                                               
and  the  audit  therefore  recommended  the  division  meet  the                                                               
minimum required by regulation.                                                                                                 
                                                                                                                                
The audit also made two  continuing recommendations to the board.                                                               
The   first  was   associated   with   deficiencies  in   DCPBL's                                                               
investigative  case   management  system.  Key   information  was                                                               
missing such as  priority codes, case open  dates, and resolution                                                               
codes. She noted that DCPBL had  taken steps to address the issue                                                               
by forming a task force to identify necessary corrective action.                                                                
                                                                                                                                
The final  ongoing recommendation was to  implement procedures to                                                               
ensure reporting  of board disciplinary actions  to national data                                                               
banks within 30  days, in accordance with state  and federal law.                                                               
The  2012  audit  found  improvement   in  overall  reporting  of                                                               
disciplinary actions,  but timeliness  continued to be  an issue.                                                               
The Department  of Commerce,  Community and  Economic Development                                                               
(DCCED)  and   State  Medical  Board   concurred  with   all  the                                                               
recommendations.                                                                                                                
                                                                                                                                
2:08:40 PM                                                                                                                    
SENATOR  OLSON asked  how Alaska's  license renewal  requirements                                                               
for physicians compared to other states.                                                                                        
                                                                                                                                
MS. CURTIS  said there were  no findings on  continuing education                                                               
but it had not been a problem  in the past for the Medical Board.                                                               
She  noted  that  some  other  boards  had  problems  with  their                                                               
continuing education not meeting national standards.                                                                            
                                                                                                                                
SENATOR  OLSON commented  that it  was  an issue  that only  four                                                               
percent of licensees were reviewed  when regulation required five                                                               
percent.                                                                                                                        
                                                                                                                                
MS.  CURTIS clarified  that it  was a  DCBPL staff  issue, not  a                                                               
Medical Board issue.                                                                                                            
                                                                                                                                
SENATOR OLSON asked  if the audit found that  the case management                                                               
deficiencies compromised patient care.                                                                                          
                                                                                                                                
MS. CURTIS answered  that the audit did not find  any instance of                                                               
that.                                                                                                                           
                                                                                                                                
SENATOR  OLSON asked  if the  disciplinary actions  were reported                                                               
after the  30-day deadline or  if the national data  banks failed                                                               
to post the reports in a timely manner.                                                                                         
                                                                                                                                
MS. CURTIS replied that the audit  found that DCBPL staff did not                                                               
submit the reports within the timeframe.                                                                                        
                                                                                                                                
2:11:19 PM                                                                                                                    
ED HALL,  President/Chair and physician assistant,  State Medical                                                               
Board, Anchorage,  AK, testified  in support of  SB 38  to extend                                                               
the sunset date of the State Medical Board to 2020.                                                                             
                                                                                                                                
SENATOR OLSON  asked if he  agreed with the  seven-year extension                                                               
as opposed to the eight years allowed under statute.                                                                            
                                                                                                                                
MR. HALL responded  that he agreed with  the seven-year extension                                                               
in light of  the findings in the sunset audit.  He noted that the                                                               
executive  administrator had  primary oversight  of reporting  so                                                               
the board would be in compliance.                                                                                               
                                                                                                                                
SENATOR  OLSON thanked  Mr. Hall  and  the other  members of  the                                                               
board for their service.                                                                                                        
                                                                                                                                
2:13:49 PM                                                                                                                    
CHAIR  DUNLEAVY announced  he would  hold SB  38 and  keep public                                                               
testimony open.