Legislature(1995 - 1996)

03/28/1995 02:09 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 HB 214:  MEDICAL RECORDS IN ELECTRONIC FORM                                 
                                                                               
 Number 087                                                                    
                                                                               
 REPRESENTATIVE GARY DAVIS, sponsor of the bill, said HB 214 will              
 clarify that electronically stored medical records on computer                
 terminals are legally acceptable in lieu of records on paper.                 
 Hospitals and nursing homes are moving toward paperless offices in            
 an effort to promote efficiency.  However, some providers are                 
 hesitant to implement the electronic retention and maintenance of             
 medical records without a hard copy back up, due to the lack of               
 explicit legal authority.                                                     
                                                                               
 REPRESENTATIVE DAVIS continued that the current statute relating to           
 medical records neither prohibits nor permits them to be kept                 
 electronically.  A legal memorandum from Legislative Legal Services           
 indicative of health care providers concerned the ability to                  
 maintain medical records which is not clearly defined in statute or           
 regulation.                                                                   
                                                                               
 REPRESENTATIVE DAVIS said HB 214 would lend clarity to the medical            
 records statute.  The current statute just says medical records               
 will be kept.  That could be interpreted to mean records can be               
 kept electronically or the old-fashioned way, on paper.  Some                 
 institutions are hesitant to utilize the new and expanding                    
 technology of computer storage.                                               
                                                                               
 REPRESENTATIVE DAVIS said this bill makes it legal and clarifies              
 the statute.  This is not a mandate, it only says records may be              
 stored in this manner should the institution decide to do so.                 
                                                                               
 Number 236                                                                    
                                                                               
 CO-CHAIR CON BUNDE assumed where the bill says, "maintain and                 
 preserve," it means all facilities for backup will be available.              
 This is in case the system crashes.  In such a case, information              
 will still be available somehow.                                              
                                                                               
 REPRESENTATIVE DAVIS said the whole system would be in place to               
 protect confidentiality through computer access.  In addition,                
 backup, the current required length of time to maintain records,              
 and security will all be included.                                            
                                                                               
 CO-CHAIR BUNDE said he has heard stories about hackers who                    
 challenge systems because they are there.  Co-Chair Bunde assumes             
 these systems would not be on-line and, therefore, accessible to              
 hackers.  He asked if Representative Davis had an idea about how              
 systems might be designed to thwart hackers.                                  
                                                                               
 REPRESENTATIVE DAVIS said discussions he has had in that regard               
 relate to various methods of maintaining confidentiality.  There              
 are different ways to access records.  There is fingerprint                   
 identification access and other types of technology available.  It            
 is the understanding of Representative Davis that since this is               
 such a critical area in which to maintain security, the regulations           
 would mandate the highest form of security available.                         
                                                                               
 REPRESENTATIVE TOM BRICE joined the meeting at 2:12 p.m., and                 
 applauded the bill.                                                           
                                                                               
 Number 411                                                                    
                                                                               
 REPRESENTATIVE NORMAN ROKEBERG asked if the provision for mandating           
 tape backups and copies of data would be perhaps micromanagment.              
 Representative Rokeberg asked if Representative Davis would be                
 willing to consider that possibility.                                         
                                                                               
 REPRESENTATIVE DAVIS thought existing regulations concerning how a            
 hospital or nursing home keeps records are already stringent.  The            
 paperwork done now would simply be done electronically.  This would           
 include backup and all the other proper requirements.  There are              
 those who are testifying on this bill who could properly address              
 those questions.                                                              
                                                                               
 CO-CHAIR BUNDE spoke to clarify his own understanding.  Nothing in            
 this bill would absolve the medical industry from the current                 
 provisions for guaranteeing privacy.                                          
                                                                               
 REPRESENTATIVE DAVIS said that is the intent of this bill.                    
                                                                               
 CO-CHAIR BUNDE asked if it would be the responsibility of the                 
 hospital to design a system that is safe and private to insure                
 confidentiality.                                                              
                                                                               
 REPRESENTATIVE DAVIS reiterated that is the intent of this bill.              
                                                                               
 Number 530                                                                    
                                                                               
 REPRESENTATIVE BRICE said he believes that considering the                    
 advancements that take place in computer technology, to put into              
 statute specifically how this storage will be accomplished as far             
 as backup information would be inefficient.  Any such provisions              
 would be outdated very quickly.  Considering the speed of                     
 technology development, it is probably best to leave well enough              
 alone and understand that general computer practices dictate                  
 confidentiality to begin with.                                                
                                                                               
 Number 598                                                                    
                                                                               
 GARY PESKA, Representative, Alaska State Hospital and Nursing Home            
 Association (ASHNHA), said his organization supports HB 214 for all           
 the reasons stated by Representative Davis in his sponsor                     
 statement.  Mr. Peska offered to answer any questions HESS                    
 Committee members may have.                                                   
                                                                               
 Number 630                                                                    
                                                                               
 CHAR THOMPSON, President, Alaska Health Information Management                
 Association, which was previously known as the Alaska Medical                 
 Records Association, said the AKHIMA totally supports HB 214.  Ms.            
 Thompson has provided written testimony in support of this                    
 legislation, and has listed some of the reasons her association               
 considers this legislation to be necessary.                                   
                                                                               
 MS. THOMPSON said computer-based patient records are being used               
 throughout the country to improve the quality of patient care and             
 to improve the documentation of patient care.  It is necessary to             
 provide the legal authority in this state to allow health care                
 providers to maintain and preserve the medical records in an                  
 electronic format.  However, currently, as Representative Davis               
 noted, there is some confusion about whether or not it is legal to            
 maintain records in an electronic format without also maintaining             
 paper-based records also.                                                     
                                                                               
 MS. THOMPSON said computer-based records are essential to                     
 supporting the clinical decision-making process in patient care.              
 Maintaining information in an electronic format will allow health             
 care providers quicker access to essential information when a                 
 patient walks into the door of a medical facility.                            
                                                                               
 Number 724                                                                    
                                                                               
 MS. THOMPSON was sure all HESS Committee members were aware of the            
 scenario of a patient coming into the emergency room and their                
 records are not available for five minutes to 30 minutes.                     
 Meanwhile, the medical personnel must treat that patient without              
 knowing, for example, that they are diabetic or have special                  
 medical conditions that need attention.                                       
                                                                               
 MS. THOMPSON said relying on paper-based records means personnel              
 must wait for the records to arrive in the emergency room, or there           
 must be a reliable way to store the records in the facility, or the           
 patient must be aware enough to provide their medical history.                
 There are times, perhaps, when care suffers because the records are           
 not available.  Also, paper-based records rely on prompt filing of            
 diagnostic tests.  There are different case scenarios where                   
 diagnostic tests are not filed promptly, and physicians have to               
 reorder a lab test to get the results he or she needs.                        
                                                                               
 MS. THOMPSON continued that electronic patient records allow health           
 care providers to utilize clinical management computer systems                
 which will automatically alert them if there are any drug allergies           
 when they prescribe a medication.  That will lead them to a new               
 method of treatment.  To utilize those clinical management                    
 programs, the patient's medical history must be input into the                
 computer.                                                                     
                                                                               
 Number 822                                                                    
                                                                               
 MS. THOMPSON added currently, health information management                   
 professionals are required to print out all information for                   
 computers and have the health care providers sign that form in                
 order to file it in the paper-based medical records.  This is a               
 very time consuming and expensive process which does nothing to add           
 to the quality of patient care or add to the quality of the                   
 documentation.                                                                
                                                                               
 MS. THOMPSON said proponents of health care reform stress it is               
 imperative to reduce health care costs.  Instead, when confined to            
 using electronic records and then also printing the reports, having           
 them signed and then filed, costs are added.                                  
                                                                               
 MS. THOMPSON said there is also an increasing move toward                     
 communication between health care systems.  One patient may go from           
 a hospital to a clinic to a nursing home.  Each of those facilities           
 and health care providers keep their own paper-based records.  As             
 patients move between health care systems, electronic patient                 
 records will facilitate the continuity of medical care throughout             
 each provider.  This will be without the necessity of duplicating             
 assessments, diagnostic tests and medical records in each facility.           
 This will be by allowing the transfer of electronic patient                   
 information with the patient.                                                 
                                                                               
 Number 918                                                                    
                                                                               
 MS. THOMPSON noted that all of this can only come about in an                 
 efficient and effective way if the need to also maintain a paper-             
 based medical record system can be eliminated.  There were concerns           
 expressed earlier by Co-Chair Bunde regarding the security and the            
 access of those records.  Ms. Thompson assured him she was very               
 concerned about this also.  Not only is she a proponent for                   
 electronic patient records, but she is also probably the best                 
 advocate for patient confidentiality.  Her organization has worked            
 with the Department of Health and Social Services (DHSS), Health              
 Facility Licensing and Certification Division, to develop                     
 regulations for electronic medical records.  These regulations are            
 in draft format currently.                                                    
                                                                               
 MS. THOMPSON said these draft regulations will allow for patient              
 information to be maintained in electronic format and provide                 
 adequate security and backup to ensure the proper retention of                
 medical record data.  There will also be provisions regarding                 
 confidentiality of patient information.  Draft regulations have               
 been developed which address essential issues relating to authentic           
 identification, confidentiality, access, retention and security.              
 Ms. Thompson agrees, however, that these provisions should not be             
 in statute.  As things change in the electronic industry, new                 
 technology and programs become available.  She said she would like            
 the ability to update regulations to reflect the current                      
 technology.  It is much easier to update regulations than statutes.           
                                                                               
 Number 1019                                                                   
                                                                               
 CO-CHAIR TOOHEY said Ms. Thompson covered that very well.  Co-Chair           
 Toohey, who is not a computer wizard, said it is a little                     
 frightening to think medical records are going to be possibly lost            
 in cyberspace.  However, Ms. Thompson has allayed those fears.                
                                                                               
 MS. THOMPSON said one of the recommendations that has been made is            
 for backup to be maintained off-site.  This is in case there is an            
 internal disaster.  In such a case, a backup copy will be available           
 off-site.  One of the things that it will also do is provide more             
 security than is currently available.  Currently, if a medical                
 record is lost due to a fire or other disaster in the hospital,               
 there is no way of retrieving that medical record.                            
                                                                               
 Number 1059                                                                   
                                                                               
 CO-CHAIR TOOHEY asked if back-up material was currently kept in a             
 fire-proof container at the hospitals.                                        
                                                                               
 MS. THOMPSON did not exactly remember the exact regulations, but              
 felt that was the normal procedure for a health information                   
 management organization services.                                             
                                                                               
 Number 1096                                                                   
                                                                               
 ELMER LINDSTROM, Special Assistant to Commissioner Perdue, DHSS,              
 said the department has reviewed HB 214 and believes that allowing            
 health care providers to maintain medical records in an electronic            
 format is desirable for a number of reasons.  The department has              
 noted that increasingly, health care providers are maintaining                
 patient records, billing information and other medical records in             
 automated systems.                                                            
                                                                               
 MR. LINDSTROM said the electronic format allows for increased                 
 productivity in updating and maintaining the records, and it also             
 allows for multiple-site access to medical records.  This has                 
 applications to tele-medicine.  For those reasons, the DHSS feels             
 this is a desirable development.                                              
                                                                               
 MR. LINDSTROM said the DHSS will be charged under the bill with               
 developing regulations to implement the potential law.  The DHSS              
 would be addressing the issues that have previously come up which             
 relate to patient informed consent and records in that area, some             
 federal records requirements, record keeping for vaccines, and so             
 forth.  However, the DHSS is confident these regulations can be               
 promulgated to everyone's satisfaction.  The DHSS appreciates the             
 flexibility to take that approach.                                            
                                                                               
 Number 1163                                                                   
                                                                               
 REPRESENTATIVE DAVIS said the development and cost of developing              
 regulations is a big concern to everyone.   The state watches every           
 fiscal note that comes along.  He noted that Char Thompson has some           
 draft regulations available, and asked if those could be used on a            
 professional consulting basis.  Representative Davis asked Mr.                
 Lindstrom if he saw those draft regulations as expediting the DHSS            
 process of promulgating regulations.                                          
                                                                               
 MR. LINDSTROM said the DHSS did submit a zero fiscal note for this            
 bill.  There are costs associated with developing regulations, but            
 those can be accommodated with the existing budget.  The DHSS will,           
 of course, take advantage of every resource in the community.  The            
 resources of the association and others will be most helpful as the           
 DHSS drafts its regulations.                                                  
                                                                               
 CO-CHAIR TOOHEY closed the meeting to public testimony and asked              
 for the wish of the committee.  She also announced that                       
 Representative Vezey had joined the meeting at 2:30 p.m.                      
                                                                               
 Number 1210                                                                   
                                                                               
 CO-CHAIR BUNDE made a motion to move HB 214 from committee with               
 accompanying fiscal notes and individual recommendations.  Hearing            
 no objection, the bill passed from committee.                                 
                                                                               

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