Legislature(2023 - 2024)BUTROVICH 205

02/08/2023 01:30 PM Senate JUDICIARY

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01:31:36 PM Start
01:32:11 PM Presentation: Alaska's Behavioral Health System for Children
03:05:33 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Informational Hearing on Department of Justice
Investigation of the State of Alaska's
Behavioral Health System for Children
-- Testimony <Invitation Only> --
Bills Previously Heard/Scheduled
                     ALASKA STATE LEGISLATURE                                                                                 
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                        February 8, 2023                                                                                        
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Matt Claman, Chair                                                                                                      
Senator Jesse Kiehl, Vice Chair                                                                                                 
Senator James Kaufman                                                                                                           
Senator Cathy Giessel                                                                                                           
Senator Löki Tobin                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: ALASKA'S BEHAVIORAL HEALTH SYSTEM FOR CHILDREN                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Mark Regan, Legal Director                                                                                                      
Disability Law Center of Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided commentary and answered questions                                                                
about   Alaska's   Behavioral    Health   System   for   Children                                                               
Presentation.                                                                                                                   
                                                                                                                                
Dr. Anne Zink, Chief Medical Officer                                                                                            
Department of Health                                                                                                            
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Provided commentary and answered questions                                                                
about   Alaska's   Behavioral    Health   System   for   Children                                                               
Presentation.                                                                                                                   
                                                                                                                                
HEATHER CARPENTER, Policy Advisor                                                                                               
Department of Health                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT: Provided  commentary and  answered questions                                                             
about   Alaska's   Behavioral    Health   System   for   Children                                                               
Presentation.                                                                                                                   
                                                                                                                                
FARINA BROWN, Acting Director                                                                                                   
Division of Behavioral Health                                                                                                   
Department of Health                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT: Provided  commentary and  answered questions                                                             
about   Alaska's   Behavioral    Health   System   for   Children                                                               
Presentation.                                                                                                                   
                                                                                                                                
Emily Ricci, Deputy Commissioner                                                                                                
Department of Health                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT: Provided  commentary and  answered questions                                                             
about   Alaska's   Behavioral    Health   System   for   Children                                                               
Presentation.                                                                                                                   
                                                                                                                                
CLINTON LASLEY, Deputy Commissioner                                                                                             
Department of Family & Community Services                                                                                       
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT: Provided  commentary and  answered questions                                                             
about   Alaska's   Behavioral    Health   System   for   Children                                                               
Presentation.                                                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:36 PM                                                                                                                    
CHAIR MATT CLAMAN called the  Senate Judiciary Standing Committee                                                             
meeting to order  at 1:31 p.m. Present at the  call to order were                                                               
Senators Kaufman, Tobin, Kiehl, Giessel and Chair Claman.                                                                       
                                                                                                                                
^PRESENTATION: Alaska's Behavioral Health System for Children                                                                   
  PRESENTATION: ALASKA'S BEHAVIORAL HEALTH SYSTEM FOR CHILDREN                                                              
                                                                                                                                
1:32:11 PM                                                                                                                    
CHAIR CLAMAN announced the consideration  of a presentation about                                                               
Alaska's Behavioral  Health System  for Children. He  pointed out                                                               
that the United  States Department of Justice  (DOJ) declined his                                                               
invitation to the hearing.                                                                                                      
                                                                                                                                
CHAIR CLAMAN  stated that  he read the  report with  reactions of                                                               
sadness, disappointment, and frustration.  The report depicts the                                                               
results  of chronic  problems left  untreated. Responding  to the                                                               
report  presents  a legal  question.  The  state must  provide  a                                                               
solution  for  Alaskan  children  in need  of  better  behavioral                                                               
health options. He hoped the  conversation would detail the legal                                                               
process and focus on a solution.                                                                                                
                                                                                                                                
1:33:57 PM                                                                                                                    
MARK  REGAN, Legal  Director, Disability  Law  Center of  Alaska,                                                               
offered information  and a  summary of  findings. He  stated that                                                               
his office filed a complaint with the  DOJ in 2020 that led to an                                                               
investigation. The investigation resulted  in the report that was                                                               
released  in  December  2022.  He stated  that  the  legal  issue                                                               
involves the state's mental health  services structure. The Title                                                               
II Americans with Disabilities Act  requires the state to provide                                                               
mental health services to children in an integrated setting.                                                                    
                                                                                                                                
MR.  REGAN continued  that some  Alaskan children  receive mental                                                               
health services in out-of-state  institutions because they do not                                                               
have access in  their communities. He spoke about  the North Star                                                               
Behavioral  Health System  where  many children  were treated  in                                                               
state.  The  overriding preference  is  for  children to  receive                                                               
mental health  services near  their homes.  The report  points to                                                               
the lack of trained providers and well-equipped facilities.                                                                     
                                                                                                                                
1:38:28 PM                                                                                                                    
MR. REGAN expounded  that his opinions did  not present criticism                                                               
of the  Office of Children's  Services (OCS). He noted  that some                                                               
small communities  have one or  two therapeutic foster  homes. He                                                               
spoke about placement in the  foster homes versus the traditional                                                               
therapeutic environments.  He pointed to the  report's disturbing                                                               
statements   about   children    in   restrictive   institutional                                                               
environments.  Children reportedly  struggle with  relocation and                                                               
the  subsequent  lack  of  connection  with  tribal  communities,                                                               
friends  and family  members. He  noted the  problem of  bringing                                                               
children home.  He acknowledged the preference  to treat children                                                               
in  their homes  or  communities, however,  there are  situations                                                               
where a therapeutic foster home is the safest location.                                                                         
                                                                                                                                
1:42:18 PM                                                                                                                    
MR. REGAN  talked about the  North Star Behavioral  Health System                                                               
and  its  limitations.  He  cited  allegations  about  abuse  and                                                               
neglect  happening in  the privately-owned  facility. The  report                                                               
addresses  the  lack  of  services  in  home  communities.  Those                                                               
services are available  in the Lower 48. Returning  home is often                                                               
difficult for  children. He acknowledged  the expert  opinions of                                                               
the other  invited testifiers  in the  room. He  expected further                                                               
conversations and stated a lawsuit  would be filed if discussions                                                               
break  down.   He  appreciated  the   opportunity  to   meet  the                                                               
obligations of the Americans with Disabilities Act.                                                                             
                                                                                                                                
MR. REGAN pointed to recommendations by the United States                                                                       
Department of Justice Civil Rights Division on page 24 of the                                                                   
report.                                                                                                                         
                                                                                                                                
   • Ensuring that community-based services are accessible and                                                                  
     available with  sufficient intensity to  prevent unnecessary                                                               
     institutionalization. Services  the State should  ensure are                                                               
     available   and   accessible   include   Home-Based   Family                                                               
     Treatment,  Crisis  Services,   Therapeutic  Treatment  Home                                                               
     Services,   Community   Recovery   Support   Services,   and                                                               
     Intensive Case Management.                                                                                                 
                                                                                                                                
   • Coordinate with community-based service providers, tribal                                                                  
     stakeholders,  and local  governments  in  Alaska to  ensure                                                               
     that  service  planning  and  implementation  is  culturally                                                               
     appropriate  and responsive  to the  needs of  Alaska Native                                                               
     children and families.                                                                                                     
                                                                                                                                
   • Support implementation of community-based behavioral health                                                                
     services  in school  settings. As  the Centers  for Medicare                                                               
     and Medicaid recently stated, to  help ensure that Medicaid-                                                               
     enrolled  children  can  access   the  services  they  need.                                                               
     schools are "uniquely positioned"57                                                                                        
                                                                                                                                
   • Develop adequate system-wide protocols for identifying                                                                     
     children  at serious  risk  of  institutional placement  and                                                               
     connecting  them  to   appropriate,  timely  community-based                                                               
     services     as     needed      to     avoid     unnecessary                                                               
     institutionalization.                                                                                                      
                                                                                                                                
   • Develop adequate system-wide protocols to ensure that                                                                      
     children  transitioning from  institutions to  the community                                                               
     receive  appropriate,  timely  community-based  services  as                                                               
     needed  to remain  in  their homes  and  communities to  the                                                               
     maximum extent possible.                                                                                                   
                                                                                                                                
   • Ensure adequate oversight of Administrative Service                                                                        
     Organizations,   State   grantees,   and   Medicaid-enrolled                                                               
     service  providers and  effective  coordination among  those                                                               
     entities,   hospitals,   and   law  enforcement   to   avoid                                                               
     unnecessary institutionalization.                                                                                          
                                                                                                                                
MR.  REGAN spoke  beyond the  report and  about institutionalized                                                               
youth. These  children were referred  out of state  because their                                                               
caretakers  or North  Star Behavioral  Health System  felt poorly                                                               
equipped  to   address  their  needs.   He  stated   that  Alaska                                                               
Psychiatric Institute (API) was the  next step and often had full                                                               
beds. Alaska requires additional  services and community options.                                                               
Alaska  lacks  the  facilities  and services  to  best  care  for                                                               
behaviorally challenged youth.                                                                                                  
                                                                                                                                
1:46:45 PM                                                                                                                    
MR.  REGAN continued  to  speak about  the  Department of  Health                                                               
(DOH)  separation from  the Department  of  Family and  Community                                                               
Services (DFCS).  He voiced the  expectation for  the departments                                                               
to  address the  issue collaboratively.  He concluded  by stating                                                               
that the report was more important than his opinions.                                                                           
                                                                                                                                
1:49:45 PM                                                                                                                    
DR.  ANNE  ZINK, Chief  Medical  Officer,  Department of  Health,                                                               
introduced herself and provided  testimony. She expressed sadness                                                               
about the issues brought forward  in the report. She stressed the                                                               
need for  partnerships and  systems that  work for  Alaskans. She                                                               
noted the seriousness  of her work with the  Department of Health                                                               
(DOH)  and  the  Department  of  Family  and  Community  Services                                                               
(DFCS).  The  lawsuit  highlights  gaps  in  the  current  system                                                               
recognized by  both departments.  She stressed her  commitment to                                                               
the health and  wellbeing of every Alaskan.  The children deserve                                                               
supportive care, engaging families,  communities and culture. She                                                               
initiated a brief overview of mental health care.                                                                               
                                                                                                                                
1:52:11 PM                                                                                                                    
DR.  ZINK  continued  detailing escalating  cases  of  behavioral                                                               
health  problems.   These  issues   began  before   the  Covid-19                                                               
pandemic. An  overall decrease in life  expectancy was documented                                                               
during  the past  decade,  with fatalities  known  as "deaths  of                                                               
despair." She cited increases in  suicide, overdose, homicide and                                                               
liver  disease. The  National Governor's  Association declared  a                                                               
focus on youth mental health. She  noted work in the Lower 48 for                                                               
youth placement; every state has  similar struggles. She posed an                                                               
analogy  between  organ  transplants  and  children's  behavioral                                                               
health  services.  Identifying  adequate  reimbursement,  capital                                                               
investments  and  motivation allow  for  the  development of  new                                                               
services.                                                                                                                       
                                                                                                                                
DR. ZINK  mentioned the  Medicaid 1115  waiver, which  offers the                                                               
basic structure  for Medicaid  services. The  report acknowledges                                                               
that the Medicaid  services provided are not  adequate for mental                                                               
health  patients.   She  maintained  that  the   federal  funding                                                               
structure  did not  accommodate these  systems. She  testified to                                                               
greater  challenges in  Alaska due  to greater  distances between                                                               
communities.  The lack  of  broadband  connectivity provides  yet                                                               
another challenge.                                                                                                              
                                                                                                                                
1:55:52 PM                                                                                                                    
SENATOR TOBIN  spoke about cultural  genocide. She asked  about a                                                               
plan  to address  the subsequent  trauma  perpetuated by  sending                                                               
children  out  of  state  for  behavioral  health  services.  She                                                               
wondered about a new bill or request for additional funding.                                                                    
                                                                                                                                
DR.  ZINK referred  to her  transplant analogy.  She communicated                                                               
that the  services were compared  because of  challenges bringing                                                               
people  home following  travel to  access  health care  currently                                                               
unavailable in the state.                                                                                                       
                                                                                                                                
1:57:31 PM                                                                                                                    
SENATOR TOBIN stressed  that she wished to see a  plan to fix the                                                               
problem.                                                                                                                        
                                                                                                                                
SENATOR GIESSEL added  that her interest is  in reimbursement and                                                               
its  barrier to  services. She  spoke  to the  issue of  provider                                                               
recruitment   and  university   education.  She   wondered  about                                                               
innovative programs such as partial hospitalization.                                                                            
                                                                                                                                
HEATHER CARPENTER, Policy Advisor,  Department of Health, Juneau,                                                               
Alaska,  agreed  that  the issue  spanned  many  departments  and                                                               
divisions.  She  provided  history regarding  the  United  States                                                               
Department of Justice. The DOJ  notified the Alaska Department of                                                               
Health and  Social Services (at  the time) on December  17, 2020.                                                               
The intent  was to investigate  whether the state  violated Title                                                               
II of  the Americans with  Disabilities Act. She  highlighted her                                                               
department's cooperation  with the  United States DOJ.  She added                                                               
that  Alaska's tribal  health organizations  participated in  the                                                               
investigation.                                                                                                                  
                                                                                                                                
MS.   CARPENTER  noted   that  the   states  undergoing   similar                                                               
investigations  include  Maine,  Nevada and  West  Virginia.  She                                                               
spoke  about   Mississippi  and   the  litigation   posture.  She                                                               
highlighted youths  seeking services  under Medicaid.  She stated                                                               
that  the senior  and disability  services  division also  serves                                                               
children    with   complex    intellectual   and    developmental                                                               
disabilities  as well  as behavioral  health services.  She spoke                                                               
about high-level  specialty care and the  difficulties recruiting                                                               
providers such  as psychiatrists  to the state.  She spoke  to an                                                               
investment  in the  University of  Alaska  Anchorage social  work                                                               
program to hire additional staff.                                                                                               
                                                                                                                                
2:03:45 PM                                                                                                                    
MS.  CARPENTER continued  that community-based  services required                                                               
additional  providers for  behavioral health  and personal  care.                                                               
She spoke about the pros and  cons of telehealth as it relates to                                                               
children. She noted  high-level concerns about the  timing of the                                                               
investigation and  findings. She intends to  engage in settlement                                                               
discussions  with the  United States  Department of  Justice. She                                                               
stressed that litigation would provide  an efficient or effective                                                               
way  to  improve   the  mental  health  system   in  Alaska.  Her                                                               
preference would be  to have settlement talks  with that strategy                                                               
in mind.                                                                                                                        
                                                                                                                                
MS. CARPENTER  continued that  a written  response to  the report                                                               
must  be  formulated. The  intention  was  to allow  for  further                                                               
collaboration  between  the  appropriate  state  departments  and                                                               
divisions.                                                                                                                      
                                                                                                                                
2:06:07 PM                                                                                                                    
CHAIR  CLAMAN stated  that  the response  would  lead to  another                                                               
committee  hearing. He  wanted the  issue to  receive the  public                                                               
attention it deserved.                                                                                                          
                                                                                                                                
MS.  CARPENTER agreed  about  the importance  of  the topic.  She                                                               
informed  the committee  that the  entire investigation  happened                                                               
during  the  Covid-19  pandemic,   which  compromised  travel  to                                                               
crucial  locations.  The  data  collection  was  limited  in  its                                                               
usefulness.  She stated  that the  staff visited  only two  rural                                                               
hubs.                                                                                                                           
                                                                                                                                
MS. CARPENTER  noted the report mentioned  telehealth services as                                                               
a  key solution.  She stated  that  telehealth behavioral  health                                                               
services increased  tremendously through and after  the pandemic.                                                               
She disagreed  that the  infrastructure was  in place  to provide                                                               
effective  telehealth services.  She highlighted  various regions                                                               
of Alaska that rely on audio only for telehealth services.                                                                      
                                                                                                                                
2:10:45 PM                                                                                                                    
MS. CARPENTER  pointed out that  the 1915(c) Medicaid  waiver was                                                               
not  reviewed in  the investigation.  Those waivers  address home                                                               
and  community-based services.  She pointed  out page  21 of  the                                                               
report  noting the  issue  of  complex care,  which  is of  great                                                               
importance.  She   proposed  the  idea  of   an  Alaska  specific                                                               
intermediate  care   facility.  She   spoke  about   the  state                                                                 
establishment of the Alaska Mental Health Trust.                                                                                
                                                                                                                                
2:12:49 PM                                                                                                                    
CHAIR  CLAMAN commented  on the  report, committee  participation                                                               
and  testimony. He  spoke about  in-state  intermediate care  and                                                               
long-term  care.  He stated  that  North  Star Behavioral  Health                                                               
System was  not an  inspiring facility  due to  understaffing and                                                               
undermanaging.  He  wondered  if  the  legislature  might  see  a                                                               
capital budget request pertaining to facility needs.                                                                            
                                                                                                                                
2:14:32 PM                                                                                                                    
MS. CARPENTER  shared a  personal story  about a  family member's                                                               
success traveling out-of-state for  treatment following care with                                                               
the North Star  Behavioral Health System. She  commented that the                                                               
federal  government did  not contribute  start-up capital  funds.                                                               
The  legislature   funded  only   one  institution:   the  Alaska                                                               
Psychiatric Institute (API).                                                                                                    
                                                                                                                                
2:16:07 PM                                                                                                                    
SENATOR  GIESSEL   repeated  that   the  reimbursements   do  not                                                               
adequately  cover  costs.  The  successful  non-profits  rely  on                                                               
grants to stay open.                                                                                                            
                                                                                                                                
2:16:44 PM                                                                                                                    
MS.  CARPENTER  spoke about  the  history  of budget  constraints                                                               
including  the exclusion  of inflation  and  or rate  adjustments                                                               
directed  by the  legislature. She  mentioned a  rebasing process                                                               
for community behavioral health providers.                                                                                      
                                                                                                                                
2:18:18 PM                                                                                                                    
SENATOR  KIEHL   referenced  a  report  from   1998.  The  report                                                               
discussed the closing of Harborview  Developmental Center in 1997                                                               
and  outlined  the  deficiency in  community-based  services.  He                                                               
quoted the report, "the needs  of children with behavioral health                                                               
disabilities in Alaska who received  services in institutions are                                                               
not materially  different from  those of  other children  who are                                                               
thriving in community-based settings in other states.                                                                           
                                                                                                                                
CHAIR CLAMAN asked Senator Kiehl to restate his question.                                                                       
                                                                                                                                
SENATOR   KIEHL  requested   further   investigation  about   the                                                               
important topic.                                                                                                                
                                                                                                                                
2:20:46 PM                                                                                                                    
SENATOR TOBIN  echoed Senator  Kiehl's sentiments.  She expressed                                                               
interest in  learning and contributing  to a solution.  She spoke                                                               
about  many kids  who are  brown and  should be  served in  their                                                               
communities. She  spoke to the  value of culturally  relevant and                                                               
community-based  services.   Her  question  related   to  federal                                                               
resources for school  counsellors and how the  committee can help                                                               
leverage the federal assets.                                                                                                    
                                                                                                                                
MS. CARPENTER mentioned similar  conversations with tribal health                                                               
organizations related  to leveraging  the 1115  Behavioral Health                                                               
Medicaid   Waiver.  She   stressed   that   the  department   and                                                               
legislature must  work closely  with tribal  health organizations                                                               
to fully implement those 1115  services. The waiver renewal is in                                                               
the public  comment process. She  mentioned a  regulation package                                                               
to allow  a 4.5 percent  increase to 1115 Medicaid  services. The                                                               
waiver is  not linked to  automatic inflation. The  tribal health                                                               
partners  can better  address the  need  for culturally  relevant                                                               
care. She pointed to housing barriers.                                                                                          
                                                                                                                                
CHAIR CLAMAN asked about the  tribal health partners. He wondered                                                               
if the department  was waiting for the tribal  health partners to                                                               
establish a plan first. He wanted to hear the department's plan.                                                                
                                                                                                                                
MS. CARPENTER replied that the  consultation and collaboration of                                                               
the tribal  health partners was  crucial to the plan.  She stated                                                               
that  presenting  a  plan  to   the  federal  government  without                                                               
collaborating with the tribes would lead to criticism.                                                                          
                                                                                                                                
CHAIR CLAMAN  asked for  two suggestions  that were  presented to                                                               
the tribal partners.                                                                                                            
                                                                                                                                
MS. CARPENTER  responded that suggestions  involve implementation                                                               
of the Medicaid 1115 waiver.                                                                                                    
                                                                                                                                
CHAIR  CLAMAN asked  what  two things  the  department wished  to                                                               
accomplish with tribal partners related to the 1115 waiver.                                                                     
                                                                                                                                
MS.  CARPENTER  stated that  the  1115  Medicaid waiver  launched                                                               
during the  pandemic. The regulations  for the  Behavioral Health                                                               
Services  were  opened  in  May  of  2020.  She  noted  that  the                                                               
department  supported   onboarding  new  providers   for  partial                                                               
hospitalization because crisis services were critical.                                                                          
                                                                                                                                
2:25:46 PM                                                                                                                    
FARINA  BROWN, Acting  Director, Division  of Behavioral  Health,                                                               
Department  of   Health,  Juneau,  Alaska,  responded   that  the                                                               
division addressed  the 1115 Medicaid waiver.  She explained that                                                               
the  behavioral  health  demonstration waiver  was  approved  and                                                               
bifurcated by the federal government  due to the opioid epidemic.                                                               
A full  waiver resulted.  The substance  use component  was fast-                                                               
tracked.  Those  services "went  live"  in  2019. The  department                                                               
ensures  that  they  have  authority   through  the  Centers  for                                                               
Medicare  &  Medicaid  Services  (CMS)  for  the  full  array  of                                                               
enhanced services while operating  in a fee-for-service paradigm.                                                               
Relationships with  behavioral health partners were  essential as                                                               
the partners must  implement the service. She  explained that the                                                               
Medicaid  budget  does not  include  resources  for workforce  or                                                               
capital.  A  rate  was  established under  the  1115  waiver  for                                                               
services. The  initial goal  was to increase  rates and  the 1115                                                               
waiver provided  the vehicle  for the  increases. In  March 2020,                                                               
the Covid-19  pandemic coincided with  the planned launch  of the                                                               
behavioral health component of the waiver.                                                                                      
                                                                                                                                
MS. BROWN  continued that  the state is  limited by  the Medicaid                                                               
budget,  which  requires  collaboration  with  behavioral  health                                                               
providers. Change is  created by ensuring that  the services span                                                               
across  various   components  of  community   participation.  The                                                               
department sought to move forward with renewed efforts.                                                                         
                                                                                                                                
2:31:45 PM                                                                                                                    
SENATOR TOBIN  asked if the  department supports  existing assets                                                               
for communities with the 1115  Medicaid behavioral health waiver.                                                               
She asked how many communities had existing services.                                                                           
                                                                                                                                
MS. BROWN  replied that she  would respond to the  committee with                                                               
those data.                                                                                                                     
                                                                                                                                
2:32:20 PM                                                                                                                    
SENATOR  GIESSEL  asked  what  the   department  needs  from  the                                                               
legislature.                                                                                                                    
                                                                                                                                
2:32:42 PM                                                                                                                    
EMILY RICCI,  Deputy Commissioner, Department of  Health, Juneau,                                                               
Alaska,  referred  to  the  1115   Medicaid  waiver.  The  waiver                                                               
resulted  from  conversations  recognizing that  the  system  was                                                               
established incorrectly. The 1115  waiver exemplifies the largest                                                               
tool  of change  presented by  the Medicaid  program. The  system                                                               
challenges existed  for decades. She expected  multiple solutions                                                               
with   stakeholders  including   tribal   health  partners,   the                                                               
behavioral  health community  and  the  legislature. She  posited                                                               
that the  health care  system in 2023  was vastly  different from                                                               
the  system in  December  of  2019. She  stated  that the  tribal                                                               
health  partners helped  the department  ascertain realistic  and                                                               
culturally  appropriate  solutions.  The issue  is  systemic  and                                                               
complex   with  multiple   solutions  available.   Solutions  and                                                               
investment needs require collaboration  to prevent repeating past                                                               
mistakes.                                                                                                                       
                                                                                                                                
2:36:19 PM                                                                                                                    
CHAIR CLAMAN asked a question  about Medicaid funding and capital                                                               
expenses. He  wondered about capital expenditure  needs. He hoped                                                               
to see a request from the governor for capital funding.                                                                         
                                                                                                                                
SENATOR  GIESSEL  pointed  out  that vacant  facilities  in  some                                                               
communities   might   be   useful    for   clinics   or   partial                                                               
hospitalization programs.                                                                                                       
                                                                                                                                
SENATOR TOBIN  noted that facilities  in Nome existed  that could                                                               
provide resources for Alaska's use.                                                                                             
                                                                                                                                
2:39:41 PM                                                                                                                    
MS. RICCI responded with information  about the department's work                                                               
related to complex  care. She spoke to the  fundamental change in                                                               
health care  systems following the pandemic.  Workforce continues                                                               
to pose  the greatest challenge  beyond issues like  location and                                                               
facilities.                                                                                                                     
                                                                                                                                
2:41:25 PM                                                                                                                    
CHAIR CLAMAN asked about workforce  shortages. He wondered if the                                                               
department  required  additional  legislative  appropriations  to                                                               
increase salaries.                                                                                                              
                                                                                                                                
MS. RICCI  clarified that the workforce  shortages involve health                                                               
care providers.                                                                                                                 
                                                                                                                                
CHAIR CLAMAN  reasoned that the  non-state provider  provides the                                                               
services  and  Medicaid  rates must  increase  for  reimbursement                                                               
purposes.                                                                                                                       
                                                                                                                                
MS. RICCI  agreed that reimbursement  was part of the  issue, but                                                               
the  primary issue  is  a  shortage of  workforce.  She spoke  to                                                               
challenges recruiting workers  to rural Alaska. She  spoke to the                                                               
cultural  challenges  workers  might  encounter in  some  of  the                                                               
vacant positions.                                                                                                               
                                                                                                                                
2:43:41 PM                                                                                                                    
DR. ZINK  talked about  rates and  workforce. She  explained that                                                               
the  solution might  be presented  in  a couple  of buckets.  The                                                               
rates  and  structure including  the  payment  of the  workforce.                                                               
Education  is   another  key   component.  She   highlighted  the                                                               
identification  of  systems   requiring  coordination  with  each                                                               
other.  The system  must  address current  and  future issues  to                                                               
allow for  flexibility. She  mentioned complex  care coordination                                                               
to  identify  needs  and   solutions.  Ideas  from  collaboration                                                               
included better information  technology (IT), healthcare savings,                                                               
and coordination between both departments.                                                                                      
                                                                                                                                
2:48:38 PM                                                                                                                    
DR. ZINK  continued that the  system created must be  nimble. She                                                               
pointed to the  Complex Care Coordination Working  Group with its                                                               
three pillars.  The first pillar addresses  individual cases. The                                                               
second   pillar   creates   a   feedback  loop   to   allow   for                                                               
identification of gaps  or needs. The third  pillar includes work                                                               
with  external stakeholders.  All  three  pillars influence  each                                                               
other.                                                                                                                          
                                                                                                                                
2:50:53 PM                                                                                                                    
SENATOR KIEHL responded that Dr.  Zink's points sounded familiar.                                                               
He  recalled  the key  strategies  to  the  Bring the  Kids  Home                                                               
initiative from  2005-2014. He asked  the testifiers to  help the                                                               
legislature "help better"  this time. He stated  concern that the                                                               
proposed  solutions  remain  the  same following  many  years  of                                                               
similar conversations.                                                                                                          
                                                                                                                                
DR. ZINK replied  that the Bring the Kids  Home process continues                                                               
with a  difference in scope.  The complex care  coordination work                                                               
is designed  for patients in  Alaska requiring services  from one                                                               
or more division that are  not currently met. The effort involves                                                               
the  Bring  the  Kids  Home model  by  addressing  the  program's                                                               
barriers and boundaries.                                                                                                        
                                                                                                                                
2:52:20 PM                                                                                                                    
CLINTON  LASLEY,  Deputy  Commissioner, Department  of  Family  &                                                               
Community Services,  Juneau, Alaska highlighted  the department's                                                               
services.  He noted  that  the separation  of  the Department  of                                                               
Health  and  the  Department of  Family  and  Community  Services                                                               
addressed many of  the issues detailed in the  hearing. The focus                                                               
on  complex  care  was  prioritized   by  both  departments.  His                                                               
department  of  family  community  services  has  four  divisions                                                               
serving youth or children. Some  of the children require services                                                               
for complex  medical or behavioral  health needs.  The department                                                               
has  approximately 2900  youth in  out-of-home placement  with 22                                                               
youth in out-of-state placement.                                                                                                
                                                                                                                                
CHAIR  CLAMAN  asked  about  Ms.   Carpenter's  reference  to  69                                                               
patients, while Mr. Lasley referenced 22 out-of-state youth.                                                                    
                                                                                                                                
MR. LASLEY  responded that  Alaska had  69 youth  in out-of-state                                                               
treatment  via the  Medicaid program.  He continued  that the  22                                                               
individuals  were under  the  care of  the  Office of  Children's                                                               
Services and three  youth were under the care of  the Division of                                                               
Juvenile  Justice. A  total of  25 youth  are serviced  under the                                                               
Department of Family and Community Services.                                                                                    
                                                                                                                                
CHAIR  CLAMAN  provided clarification  that  the  25 youths  were                                                               
contained within the 69 mentioned earlier.                                                                                      
                                                                                                                                
MR.  LASLEY concurred  and noted  that some  youths receive  care                                                               
through  Medicaid  and  others   via  the  Office  of  Children's                                                               
Services.  He spoke  about API's  ten youth  beds. He  recalled a                                                               
time  when  API   was  in  a  similar   crisis,  which  presented                                                               
challenges like those North Star  Behavioral Health System faced.                                                               
He spoke about  safety considerations related to  sending a child                                                               
out of state for treatment.                                                                                                     
                                                                                                                                
2:58:06 PM                                                                                                                    
MR.  LASLEY  spoke further  about  efforts  for individuals  with                                                               
complex  needs.  The  treatment  needs  of  the  individual  were                                                               
scrutinized.  Efforts are  made to  keep children  close to  home                                                               
while  obtaining   culturally  appropriate   services.  Placement                                                               
options  are not  always available  in  smaller communities.  The                                                               
department recently hired a complex  care coordinator. He pointed                                                               
to a  request for an  additional three positions proposed  in the                                                               
Governor's FY  24 budget to build  out the complex care  team. He                                                               
mentioned  the  expansion  of the  Alaska  Tribal  Child  Welfare                                                               
Compact with  an additional $3.4  million for a primary  focus on                                                               
prevention. The  governor added  $10 million  in base  funding to                                                               
the Office of Children's Services last year.                                                                                    
                                                                                                                                
3:02:37 PM                                                                                                                    
SENATOR  GIESSEL  expressed  appreciation  for  the  department's                                                               
efforts.  She appreciated  the departments  and  the health  care                                                               
professionals for serving the children in need.                                                                                 
                                                                                                                                
SENATOR KIEHL  echoed Senator Giessel's  comments. He  hoped that                                                               
the  Alaska  Mental Health  Trust  would  be involved  in  future                                                               
hearings.                                                                                                                       
                                                                                                                                
CHAIR CLAMAN stressed the importance of the topic.                                                                              
                                                                                                                                
3:05:33 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Claman  adjourned the  Senate Judiciary  Standing Committee                                                               
meeting at 3:05 PM