Legislature(2001 - 2002)

04/05/2001 09:18 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 154                                                                                                        
     "An  Act  relating  to  mental  health  treatment  facilities;                                                             
     repealing  the termination date of the mental  health treatment                                                            
     assistance program; and providing for an effective date."                                                                  
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
WENDY  HALL, Staff  to  Co-Chair Kelly  read  a statement  into  the                                                            
record as follows.                                                                                                              
                                                                                                                                
     The  designated  evaluation  treatment  program  is a  critical                                                            
     component  to  the  continuum  of  mental  health  services  in                                                            
     Alaska, particularly  for indigent persons with  mental illness                                                            
     who are being civilly  committed or meet the criteria for civil                                                            
     commitment.                                                                                                                
     Through this  program, many poor people with  mental illnesses,                                                            
     who do not  qualify for Medicaid, are able to  receive services                                                            
     in  community  hospitals  across  the  state  closer  to  their                                                            
     families and local  support systems. Without [this] program, it                                                            
     would  necessary  to  transport  many consumers  in  crisis  to                                                            
     Alaska   Psychiatric  Institute   to  receive  evaluation   and                                                            
     treatment services.                                                                                                        
                                                                                                                                
Ms. Hall  then  stated that  this bill  repeals the  sunset date  of                                                            
existing statute to allow continuation of this program.                                                                         
                                                                                                                                
ELMER  LINDSTROM, Special  Assistant,  Office of  the Commissioner,                                                             
Department  of  Health  and  Social  Services,  testified  that  the                                                            
department  is in  full  support of  the  bill and  appreciates  the                                                            
legislature's adoption of the original legislation.                                                                             
                                                                                                                                
Co-Chair Kelly inquired about the fiscal note.                                                                                  
                                                                                                                                
Mr. Lindstrom  replied that although the fiscal note  shows the full                                                            
cost  of the  program in  FY 02,  these costs  are  included in  the                                                            
Senate  version of the  FY 02 operating  budget.  He noted that  the                                                            
program has increased over  time, as expected. He shared that a non-                                                            
general fund  source has been used  to fund the bulk of the  program                                                            
over the past year. He  pointed out that this fund source expires at                                                            
the end of the current fiscal year but that an alternate non-                                                                   
general  fund  source has  been  identified  and  would be  used  to                                                            
continue the program.                                                                                                           
                                                                                                                                
Co-Chair Kelly  clarified that the  fiscal note represents  the full                                                            
cost  to  operate  the program  rather  than  the  increase  of  the                                                            
previous year, due to the sunset date.                                                                                          
                                                                                                                                
Mr. Lindstrom affirmed.                                                                                                         
                                                                                                                                
Co-Chair  Kelly asked the  increased general  fund cost compared  to                                                            
the previous year.                                                                                                              
                                                                                                                                
WALTER   MAJAROS,   Director,   Division   of  Mental   Health   and                                                            
Developmental   Disabilities,  Department   of  Health  and   Social                                                            
Services,  stated  that the  fiscal  note  contains a  general  fund                                                            
increment  of $100,000 and  a Mental Health  Trust Authority  (MHTA)                                                            
fund  increment   of  $200,000.  He  expanded  on  Mr.  Lindstrom's                                                             
comments, noting the non-general  fund source is available through a                                                            
"creative use of a federal self-insurance program."                                                                             
                                                                                                                                
Co-Chair Kelly surmised  that in a normal situation, the fiscal note                                                            
amount would  be approximately $100,000.  He again pointed  out that                                                            
the  appearance  of  a higher  amount  is  because  the  program  is                                                            
otherwise  concluded at the  end of the current  fiscal year  unless                                                            
extended through this legislation.                                                                                              
                                                                                                                                
KARL SANFORD, Assistant  Administrator, Fairbanks Memorial Hospital,                                                            
testified  via  teleconference  from  Fairbanks  in support  of  the                                                            
legislation.  He  listed the  decrease  in  the number  of  patients                                                            
transported  out of  the community  over the past  two and  one-half                                                            
years. He  surmised this  program has resulted  in cost savings  for                                                            
the state due  to quicker access to  care for mentally ill  patients                                                            
as well as  a continuity of providers  for these patients.  He spoke                                                            
of the quality  of care provided,  which is possible because  of the                                                            
provider's   familiarity  with  their   situations  and   needs.  He                                                            
asserted, "The health of the community is better off for that."                                                                 
                                                                                                                                
Mr. Sanford  added that the reduced  number of patients transported                                                             
to the Alaska  Psychiatric Institute  (API) has increased  the level                                                            
of service provided at that facility as well.                                                                                   
                                                                                                                                
Co-Chair  Kelly asked the  number of patients  transported  from the                                                            
Fairbanks Memorial Hospital  to API during the last year compared to                                                            
the number the year prior.                                                                                                      
                                                                                                                                
Mr. Sanford  answered  approximately  70 transfers  occurred in  the                                                            
year 1999, reduced to five in 2000.                                                                                             
                                                                                                                                
R. DUANE HOPSON,  MD, Medical Director  of Mental Health,  Fairbanks                                                            
Memorial Hospital,  testified via  teleconference from Fairbanks  in                                                            
favor  of  the  bill.  He  spoke  of  the consequences   of  delayed                                                            
treatment for  mental illness, which he noted increases  the cost to                                                            
the patient  and sometimes increases  the necessary hospitalization                                                             
time.                                                                                                                           
                                                                                                                                
LIZ  WOODYARD,  Registered   Nurse  and  Manager,  Inpatient   Unit,                                                            
Fairbanks  Memorial  Hospital  testified   via teleconference   from                                                            
Fairbanks  to  emphasize  the  benefits  of  family  involvement  in                                                            
treatment of mentally ill patients.                                                                                             
                                                                                                                                
GARTH HAMBLIN, Chief Financial  Officer, Bartlett Regional Hospital,                                                            
testified  in Juneau  in support  of the  bill,  stressing that  the                                                            
program  allows  treatment  of the  mentally  ill within  their  own                                                            
communities.                                                                                                                    
                                                                                                                                
PAT CLASBY,  Alaska  State Hospital  and Nursing  Home Association,                                                             
testified in  Juneau in favor of the  legislation. She gave  history                                                            
of the  previous two years  of the program.  She listed the  primary                                                            
providers   as  Fairbanks  Memorial   Hospital,  Bartlett   Regional                                                            
Hospital,  the  Kodiak  hospital,  and  the Yukon-Kuskokwim   Health                                                            
Center in Norton  Sound. She added that other smaller  facilities in                                                            
the state also provide  services to patients in the civil commitment                                                            
process prior  to transport to a regional treatment  facility of the                                                            
API. She opined this program  is "the modern approach to care at the                                                            
local hospital"  and avoids transports  to the state-facility  in as                                                            
many cases as possible.  She stressed that if this program continues                                                            
it would  become  the primary  aspect  of continuing  mental  health                                                            
care.                                                                                                                           
                                                                                                                                
Senator  Ward commented  that  he fully  supported  the program  and                                                            
noted that members of his  family benefited from it. He asked if the                                                            
state  receives  reimbursement   for  services  provided  to  Native                                                            
Alaskan patients.                                                                                                               
                                                                                                                                
LENORD ABEL,  PHD, Program  Administrator,  Mental Health  Services,                                                            
Division   of  Mental   Health   and  Developmental   Disabilities,                                                             
Department  of  Health  and  Social  Services,  responded  that  the                                                            
federal  government,  "truly  is  the  payer  of  last  resort."  He                                                            
explained these funds are  used only after it is determined that the                                                            
patient is not eligible for any other services.                                                                                 
                                                                                                                                
Senator  Ward stressed  that  many people  are not  receiving  these                                                            
services  because the  funds  run out.  He emphasized  that  Alaskan                                                            
Natives have a right to  this service. He asserted that the MHTA has                                                            
a responsibility  to Natives to provide  services and informed  that                                                            
if the Trust  does not pay, the state  must pay. He opined  that the                                                            
federal government should pay this cost.                                                                                        
                                                                                                                                
Co-Chair  Kelly asked  Senator  Ward to  assist in  monitoring  this                                                            
legislation as  it progresses through the House of  Representatives.                                                            
                                                                                                                                
Senator Ward agreed to do so.                                                                                                   
                                                                                                                                
Senator Green asked if this program is related to Medicaid.                                                                     
                                                                                                                                
Mr. Abel  replied  that it  is not,  and explained  this program  is                                                            
intended  to  help  indigent  persons,  who  do  not  have  Medicaid                                                            
coverage or private insurance.                                                                                                  
                                                                                                                                
Senator  Hoffman  wanted to  know  how this  program  impacts  other                                                            
communities in the state not mentioned.                                                                                         
                                                                                                                                
Co-Chair  Kelly answered  that because patients  from Fairbanks  and                                                            
Juneau are  not occupying beds at  API, more space is available  for                                                            
patients from other communities.                                                                                                
                                                                                                                                
Senator Green  offered a  motion to move SB  154, 22-LS 0748\A  from                                                            
Committee  with   accompanying  $2,652,100  fiscal   note  from  the                                                            
Department of Health and Social Services.                                                                                       
                                                                                                                                
There was no objection and the bill MOVED from Committee.                                                                       
                                                                                                                                
AT EASE 9:37 AM / 9:48 AM                                                                                                       
                                                                                                                                

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