Legislature(2023 - 2024)BUTROVICH 205

04/26/2023 01:30 PM Senate JUDICIARY

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01:32:18 PM Start
01:32:55 PM Informational Hearing on Department of Justice Investigation of the State of Alaska's Behavioral Health System for Children.
02:53:31 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Testimony <Invitation Only> --
Informational Hearing on Department of Justice
Investigation of the State of Alaska's
Behavioral Health System for Children
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         April 26, 2023                                                                                         
                           1:32 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                                                                                                            
                                                                                                                                
INFORMATIONAL HEARING ON DEPARTMENT OF JUSTICE INVESTIGATION OF                                                                 
THE STATE OF ALASKA'S BEHAVIORAL HEALTH SYSTEM FOR CHILDREN.                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DR. ANNE ZINK, Chief Medical Officer                                                                                            
Department of Health                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Contributed to the Informational Hearing on                                                               
the Department of Justice Investigation of the State of Alaska's                                                                
Behavioral Health System for Children.                                                                                          
                                                                                                                                
HEATHER CARPENTER, Policy Advisor                                                                                               
Department of Health                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Contributed to the Informational Hearing on                                                               
the Department of Justice Investigation of the State of Alaska's                                                                
Behavioral Health System for Children.                                                                                          
                                                                                                                                
FARINA BROWN, Acting Director                                                                                                   
Division of Behavioral Health                                                                                                   
Department of Health                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:  Responded  to  committee  member  questions                                                             
about behavioral health challenges in Alaska.                                                                                   
                                                                                                                                
JEN GRIFFIS, representing self                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:   Delivered  the   presentation,  Behavioral                                                             
Health Systems of Care.                                                                                                         
                                                                                                                                
SHELLEY EBENAL, Chief Executive Officer                                                                                         
Foundation Health Partners                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION   STATEMENT:   Delivered  the   presentation,   Interior                                                             
Pediatric Behavioral Health Summit.                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:18 PM                                                                                                                    
CHAIR MATT CLAMAN called the  Senate Judiciary Standing Committee                                                             
meeting to order  at 1:32 p.m. Present at the  call to order were                                                               
Senators  Kaufman,  Giessel,  and  Chair  Claman.  Senator  Tobin                                                               
arrived immediately  thereafter and Senator Kiehl  arrived during                                                               
the course of the meeting.                                                                                                      
                                                                                                                                
^INFORMATIONAL HEARING ON DEPARTMENT  OF JUSTICE INVESTIGATION OF                                                               
THE STATE OF ALASKA'S BEHAVIORAL HEALTH SYSTEM FOR CHILDREN.                                                                    
                                                                                                                                
INFORMATIONAL HEARING ON DEPARTMENT OF JUSTICE INVESTIGATION OF                                                             
  THE STATE OF ALASKA'S BEHAVIORAL HEALTH SYSTEM FOR CHILDREN.                                                              
                                                                                                                                
1:32:55 PM                                                                                                                    
CHAIR  CLAMAN announced  the consideration  of the  Informational                                                               
Hearing on  Department of Justice  Investigation of the  State of                                                               
Alaska's Behavioral Health System for Children.                                                                                 
                                                                                                                                
1:34:08 PM                                                                                                                    
DR.  ANNE  ZINK, Chief  Medical  Officer,  Department of  Health,                                                               
Anchorage,  Alaska,  offered  the presentation  titled  "Alaska's                                                               
Efforts to Improve Behavioral Health  Outcomes for Children." She                                                               
stated that  the presentation will address  the behavioral health                                                               
needs for  children in Alaska.  She clarified that  the foregoing                                                               
was  not the  department's legal  response to  the Department  of                                                               
Justice.                                                                                                                        
                                                                                                                                
1:34:52 PM                                                                                                                    
DR. ZINK  began with  slide 2,  "Behavioral Health  Funding." She                                                               
stated  that  the  Department  of  Justice  focused  on  Medicaid                                                               
funding so  the presentation would  took but it was  important to                                                               
note that the four sources need to be thought of collectively.                                                                  
                                                                                                                                
     Medicaid, grants, general  fund expenditures, and other                                                                    
     payers  are  the State's  primary  tools  to support  a                                                                    
     broader  range of  services and  provide Alaskans  with                                                                    
     access to services not typically covered by Medicaid.                                                                      
                                                                                                                                
1:35:22 PM                                                                                                                    
SENATOR  GIESSEL asked  if committee  members  should hold  their                                                               
questions until after the presentation.                                                                                         
                                                                                                                                
DR.  ZINK replied  that their  preference was  to take  questions                                                               
after the presentation.                                                                                                         
                                                                                                                                
1:35:42 PM                                                                                                                    
HEATHER CARPENTER,  Policy Advisor Department of  Health, Juneau,                                                               
Alaska,  revisited  slide  2, "Behavioral  Health  Funding."  She                                                               
reminded the committee that three  funding structures exist under                                                               
Medicaid in  Alaska; these  are the state  plan and  two waivers.                                                               
The state plan  provides the bulk of services  for which Medicaid                                                               
is paid; the  1915C home and community based  service waivers are                                                               
tailored  to individuals  who require  an institutional-level  of                                                               
care; and the federal  government's demonstration 1115 behavioral                                                               
health waiver  that is  tailored to the  whole system  and allows                                                               
the  state to  make wholesale  changes,  which brought  in a  new                                                               
service array  that allowed  behavioral health  services billable                                                               
to Medicaid.                                                                                                                    
                                                                                                                                
1:36:55 PM                                                                                                                    
MS.  CARPENTER  moved to  slide  3,  "Medicaid Behavioral  Health                                                               
Services in Alaska."                                                                                                            
                                                                                                                                
     • Alaska is a Medicaid fee-for-service state.                                                                              
     • Alaska relies on non-government entities to provide                                                                      
        most direct care services.                                                                                              
      • Service availability depends on whether providers                                                                       
        offer those services, and which payment mechanisms                                                                      
        they accept.                                                                                                            
     • Rural geography and diffuse population centers pose                                                                      
        significant   challenges   to   the   provision   of                                                                    
        behavioral health care services.                                                                                        
                                                                                                                                
1:38:04 PM                                                                                                                    
MS. CARPENTER spoke to slide 4, "1115 Demonstration Waiver                                                                      
Improved Access to Behavioral Health Services."                                                                                 
                                                                                                                                
     Improvements:                                                                                                            
                                                                                                                                
     •  Allows state to cover services not typically covered                                                                    
        by Medicaid.                                                                                                            
     •  Expands Medicaid-covered services to include at risk                                                                    
        Alaskans.                                                                                                               
     • Reduces reliance on late-stage crisis services.                                                                          
     •  Emphasis on  early-stage  outreach, prevention,  and                                                                    
        intervention.                                                                                                           
     • Uses innovative services delivery systems.                                                                               
                                                                                                                                
     Unrealized Benefits:                                                                                                     
                                                                                                                                
     •  The second part of the waiver  went into full effect                                                                    
        in May 2020 through emergency regulations, 2 months                                                                     
        after the start of the pandemic.                                                                                        
     •  Utilization of all the 1115 waiver  could only begin                                                                    
        once reimbursement became available in May 2020.                                                                        
     •  Benefits  of  the   1115  waiver  are   still  being                                                                    
        implemented by a growing number of providers.                                                                           
     •  Plan  submitted  to  CMS  [Centers  for  Medicare  &                                                                    
        Medicaid Services] for waiver renewal February 27,                                                                      
        2023.                                                                                                                   
                                                                                                                                
1:40:57 PM                                                                                                                    
DR. ZINK spoke to slide 5, "Three Key Focus Areas Going                                                                         
Forward."                                                                                                                       
                                                                                                                                
     • Medicaid Reimbursement Structure and Participation                                                                       
      • Expanding Methods of Service Delivery and Facility                                                                      
        Types                                                                                                                   
     • Establish and Expand Crisis Stabilization Services                                                                       
                                                                                                                                
1:42:13 PM                                                                                                                    
MS. CARPENTER spoke to slide 6, "Medicaid Reimbursement                                                                         
Structure and Participation."                                                                                                   
                                                                                                                                
     • Increased Rates for 1115 Services.                                                                                       
     •  Increased  Rates  for   Home  and   Community  Based                                                                    
        Services.                                                                                                               
     • Rebased Rates for Home and Community Based Services.                                                                     
        • Rebasing Rates for Community Behavioral Health                                                                        
        Providers.                                                                                                              
                                                                                                                                
1:42:53 PM                                                                                                                    
MS. CARPENTER  spoke to  slide 7,  "Expanding Methods  of service                                                               
Delivery and Facility Types."                                                                                                   
                                                                                                                                
     1) Increase utilization of existing services.                                                                              
    2) Fully   implement   new   telehealth   statute   and                                                                     
        regulations.                                                                                                            
     3) Additional non-Medicaid efforts:                                                                                        
          Psychiatric Emergency Services (PES) Program.                                                                         
          Broadband Task Force.                                                                                                 
          Stakeholder Engagement.                                                                                               
          Provider Education.                                                                                                   
     4) Identify and address gaps in the continuum of care.                                                                     
          Fully implement HB 172, 1115 and other areas of                                                                       
          effort.                                                                                                               
                                                                                                                                
DR.  ZINK  remarked  that  infrastructure  dollars  are  tied  to                                                               
healthcare  workforce dollars.  She  recommended utilizing  every                                                               
level  available  to  ensure housing,  broadband  and  telehealth                                                               
services  across the  state. The  Medicaid  waivers require  many                                                               
different pieces to come together.                                                                                              
                                                                                                                                
1:45:39 PM                                                                                                                    
DR.  ZINK  discussed  slide  8,  "Crisis  Stabilization  Services                                                               
Reduce the Need for a Higher Level of Care."                                                                                    
                                                                                                                                
     1) Statewide crisis call center.                                                                                           
     2) Centrally deployed, 24/7 mobile crisis teams.                                                                           
     3) 23-hour and short-term stabilization.                                                                                   
                                                                                                                                
1:47:21 PM                                                                                                                    
MS. CARPENTER  spoke to  slide 9,  "Supporting Alaskans  Close to                                                               
Home."                                                                                                                          
                                                                                                                                
     1) Today, there are 73 children on Medicaid receiving                                                                      
        care out of state.                                                                                                      
      2) Since December 2020 (start of DOJ investigation),                                                                      
        Alaska has reduced the number of children on                                                                            
        Medicaid receiving care out of state by 25.5%.                                                                          
     3) Out of state care is an option of last resort.                                                                          
     4) Children placed out of state are closely monitored                                                                      
        by dedicated staff to coordinate care and ensure                                                                        
        facility compliance.                                                                                                    
                                                                                                                                
1:48:36 PM                                                                                                                    
DR.  ZINK   continued  to  slide  10,   "Improving  Complex  Care                                                               
Coordination."  She reminded  the committee  that systems  do not                                                               
always meet the  needs of the patient. She  acknowledged that the                                                               
Department of  Justice report did not  include many heartbreaking                                                               
stories  about  children  wishing  to  be  closer  to  home.  She                                                               
highlighted  that the  challenges brought  forward in  the report                                                               
exist in the  state and across the nation. She  revealed that the                                                               
Improving Complex Care Coordination  project was initiated by the                                                               
Department of Health  and the Department of  Family and Community                                                               
Health  Services.  Residing  within  the project  is  the  crisis                                                               
response  team,  which is  a  multidisciplinary  team that  meets                                                               
weekly to address patient needs.                                                                                                
                                                                                                                                
DR. ZINK  shared that  the team reviewed  three cases  this week.                                                               
She  noted  that one  case  involved  a multitude  of  behavioral                                                               
health  clinicians,  both  in-state  and  out-of-state,  with  no                                                               
unified plan  for the child.  The second case involved  a patient                                                               
in  an inpatient  psychiatric  facility  requiring discharge  and                                                               
three-on-one  services.  Numerous   funding  types  were  braided                                                               
together to  provide the three-on-one  service type  allowing the                                                               
patient to move back into  the community. The third case involved                                                               
a series  of payment  structures without  a mechanism  to include                                                               
room and board  and behavioral health needs.  The crisis response                                                               
team addresses solutions to meet patient's needs today.                                                                         
                                                                                                                                
DR. ZINK revealed that the  complex care advisory group addresses                                                               
methods  of   improving  the  systems.  She   mentioned  possible                                                               
solutions  such as  payment systems  or  regulation changes  that                                                               
allow for  data-driven and informed decisions  about regulations,                                                               
statutes and  license types.  Another collaboration  includes the                                                               
complex  care advisory  group that  works  with the  state and  a                                                               
multitude of partners to participate  in providing facilities and                                                               
needed  services.  The teams  look  for  real-time solutions  and                                                               
partner with  external stakeholders  to constantly  reiterate and                                                               
change  Alaska's services.  She  noted that  the  efforts do  not                                                               
replace the Complex Care Collaborative  or the multi-sector state                                                               
coordination group.                                                                                                             
                                                                                                                                
1:52:24 PM                                                                                                                    
MS. CARPENTER spoke to slide 11, "Tribal Collaboration."                                                                        
                                                                                                                                
       • Tribal collaboration is essential in addressing                                                                        
        Alaska's behavioral health needs.                                                                                       
     • Tribal Health Organizations (THO) are vital partners                                                                     
        in providing services in their regions and                                                                              
        communities.                                                                                                            
        • For many rural communities, THOs are the only                                                                         
        Medicaid enrolled provider.                                                                                             
         • DOH and DFCS have designated tribal liaison                                                                          
        positions.                                                                                                              
      • Alaska Medicaid utilizes the Medicaid Tribal Task                                                                       
        Force, Tribal Behavioral Health Directors, and                                                                          
        Medicaid Tribal Consultation to partner with tribes.                                                                    
                                                                                                                                
1:53:04 PM                                                                                                                    
DR. ZINK discussed slide 12, "Near Term Efforts in Progress."                                                                   
                                                                                                                                
     • Developing Infrastructure for Complex Care Coordination.                                                                 
     • Increase Utilization of Waivers.                                                                                         
     • Increase Behavioral Health Infrastructure.                                                                               
     • Developing Workforce.                                                                                                    
     • Improving Provider Support                                                                                               
                                                                                                                                
1:55:56 PM                                                                                                                    
DR. ZINK spoke to slide 13, "What's Next?"                                                                                      
                                                                                                                                
      • Initiate a steering committee to determine goals,                                                                       
        recommended approach, and timeline, and outline                                                                         
        necessary resources to develop statewide and                                                                            
        regional plans.                                                                                                         
     • Focus on statewide and regional services.                                                                                
      • Draft plan will be shared publicly, welcome robust                                                                      
        public comment statewide, and involve listening                                                                         
        session in specific regions.                                                                                            
     • Final plan be shared with the legislature and other                                                                      
        governmental agencies.                                                                                                  
                                                                                                                                
1:56:58 PM                                                                                                                    
SENATOR GIESSEL referenced slide 2 and asked what percentage of                                                                 
behavioral health funding is derived from Medicaid.                                                                             
                                                                                                                                
1:57:23 PM                                                                                                                    
MS. CARPENTER replied that she would  need to work with the other                                                               
payers  and  follow  up  with   the  data.  She  noted  that  the                                                               
departments  lacked an  all-payor  claims database  to track  the                                                               
percentage. She  stated that Medicaid  covered over  one-third of                                                               
Alaskans and a large portion of children.                                                                                       
                                                                                                                                
1:57:58 PM                                                                                                                    
SENATOR GIESSEL commented that not every Medicaid beneficiary                                                                   
receives behavioral health services.                                                                                            
                                                                                                                                
MS. CARPENTER agreed.                                                                                                           
                                                                                                                                
SENATOR  GIESSEL asked  about the  challenges the  department had                                                               
with its  computer data  systems. She  asked if  those challenges                                                               
were identified in the DOJ report.                                                                                              
                                                                                                                                
MS.  CARPENTER asked  if  she was  referring  to the  eligibility                                                               
system.                                                                                                                         
                                                                                                                                
1:59:42 PM                                                                                                                    
SENATOR GIESSEL  replied that  she was  referring to  the payment                                                               
system that is audited annually.                                                                                                
                                                                                                                                
MS.   CARPENTER   responded    that   the   department   publicly                                                               
acknowledged  the challenges  with the  vendor Optum.  She stated                                                               
that the federal government did  not identify that Optum was part                                                               
of  the problem,  but instead  highlighted the  issue of  too few                                                               
providers  delivering  the   necessary  community  services.  She                                                               
acknowledged  that  when  providers  are not  paid  in  a  timely                                                               
manner,  the stress  leads to  diminished  service delivery.  She                                                               
remarked on  the importance  of paying  providers in  an accurate                                                               
and timely  manner. She stressed  that the department  was taking                                                               
every step possible within the  contractual process to hold Optum                                                               
accountable.                                                                                                                    
                                                                                                                                
SENATOR GIESSEL highlighted the  errors the department makes when                                                               
submitting claims to the federal  government. She stated that the                                                               
repayments identified in the audits were concerning.                                                                            
                                                                                                                                
2:00:06 PM                                                                                                                    
DR.  ZINK  agreed  that  the  state  must  have  transparent  and                                                               
reliable  data sources.  She  added that  the  state employs  two                                                               
additional  data   sources:  the  Alaska   Automated  Information                                                               
Management System  (AKAIMS) and  the Health  Information Exchange                                                               
(HIE).  She stated  that  the department  was  making strides  in                                                               
streamlining  and improving  both  data  management systems.  She                                                               
highlighted  the importance  of data  systems for  enabling data-                                                               
informed decisions.  She asked Acting  Director Brown if  she had                                                               
anything to add.                                                                                                                
                                                                                                                                
2:01:24 PM                                                                                                                    
FARINA  BROWN, Acting  Director, Division  of Behavioral  Health,                                                               
Department  of Health,  Anchorage,  Alaska, stated  that the  DOJ                                                               
findings  did identify  the administrative  services organization                                                               
as  an  area requiring  better  administration  and oversight  of                                                               
claims  adjudication. She  noted that  the division  continues to                                                               
work with  Optum on claims  adjudication. She mentioned  that the                                                               
department  was currently  involved in  a corrective  action with                                                               
Optum  regarding  the  ongoing claims  adjudication  issues.  She                                                               
acknowledged  that the  claims payments  have contributed  to the                                                               
difficulty  with providers  offering services  across the  state.                                                               
She  recognized  the  criticality  of the  waiver's  success  and                                                               
acknowledged   that  without   remediation,  slow   growth  would                                                               
continue.                                                                                                                       
                                                                                                                                
2:02:56 PM                                                                                                                    
SENATOR  GIESSEL asked  about  slide 8,  bullet  3, "23-hour  and                                                               
short-term stabilization."  She expressed concern  about patients                                                               
reaching  the  end  of  the  23-hour  stabilization  period.  She                                                               
wondered about the next step for those people.                                                                                  
                                                                                                                                
2:03:37 PM                                                                                                                    
CHAIR CLAMAN  highlighted that  Senator Giessel  sponsored crisis                                                               
stabilization legislation.                                                                                                      
                                                                                                                                
MS. CARPENTER  agreed that  legislation passed  last year  and in                                                               
2020 were  heralded by both  Senator Giessel and  Senator Claman.                                                               
Responding  to   Senator  Giessel's   query  about   the  23-hour                                                               
stabilization  period, she  explained  that if  a  person is  not                                                               
stabilized   and  continues   to  meet   the  criteria   for  the                                                               
involuntary  hold,  they would  be  transferred  to a  short-term                                                               
crisis residential center. For larger  facilities, the next level                                                               
of care  is available  on site.  She highlighted  that a  lack of                                                               
wraparound community  services leads to  a new chokepoint  in the                                                               
system.  She   stressed  the  need   for  a   full-spectrum  care                                                               
continuum,  so Alaskans  are ensured  behavioral  health care  as                                                               
close to  home as possible.  The hope is for  quick stabilization                                                               
and discharge to community providers.                                                                                           
                                                                                                                                
2:05:25 PM                                                                                                                    
SENATOR  GIESSEL   highlighted  the  importance   of  residential                                                               
treatment and partial hospitalization options.                                                                                  
                                                                                                                                
DR.  ZINK shared  that the  state saw  an increase  in Designated                                                               
Evaluation and  Treatment (DET)  facilities. She  quoted national                                                               
data  stating  that  the 23-hour  facilities  will  stabilize  70                                                               
percent  of patients.  She added  that the  23-hour stabilization                                                               
facilities can offer  support for people discharged  from API and                                                               
requiring transitional care in rural areas.                                                                                     
                                                                                                                                
2:06:53 PM                                                                                                                    
SENATOR GIESSEL  stated that partial hospitalization  is intended                                                               
to provide programmatic day therapy.                                                                                            
                                                                                                                                
2:07:14 PM                                                                                                                    
SENATOR  TOBIN referred  to the  DOJ report  that mentioned  site                                                               
visits  in 2022.  She asked  about the  inconsistencies noted  on                                                               
slide 4  with the  1115 waiver dictated  by current  data points.                                                               
She pointed to the statement,  "emphasis on early-stage outreach,                                                               
prevention and  intervention." She  understood that the  hope was                                                               
to prevent the  need for crisis services. She noted  that the DOJ                                                               
report  mentions the  school-based services  and early  community                                                               
and  home  interventions.  She wondered  about  the  department's                                                               
efforts related to accessible providers  in schools. She wondered                                                               
about preventative options. She  highlighted the report's mention                                                               
of  cultural  competency. She  asked  how  the legislature  could                                                               
ensure that a cultural component was a key part of the effort.                                                                  
                                                                                                                                
2:09:03 PM                                                                                                                    
MS.  CARPENTER responded  that  the  departments have  designated                                                               
tribal liaisons in the commissioners'  offices. Each division and                                                               
department has tribal liaisons,  and the culturally relevant care                                                               
is  of great  importance.  She added  that  tribal providers  are                                                               
often the only  providers in the rural  communities. She reminded                                                               
the committee that the state is not a direct service provider.                                                                  
                                                                                                                                
MS.  CARPENTER explained  that  delivering  Medicaid services  in                                                               
schools is  a complex issue.  She noted that past  audit findings                                                               
led  to   federal  repayments.  She  stated   that  the  steering                                                               
committee  will address  the issue  of administering  services in                                                               
the  schools.  She  added  that  the  Centers  for  Medicare  and                                                               
Medicaid  Services (CMS)  has rules  about services  delivered in                                                               
schools.  She advocated  for a  collective approach  to designing                                                               
school-based Medicaid  services. She highlighted  the flexibility                                                               
and  options through  SB  74. She  mentioned  the possibility  of                                                               
approaching  the  federal  government  for  permission  to  offer                                                               
school-based  Medicaid  services.  She noted  the  challenges  in                                                               
obtaining,   licensing,  and   housing   new  behavioral   health                                                               
providers. She deferred to Acting  Director Brown for information                                                               
about preventative services and efforts.                                                                                        
                                                                                                                                
2:12:07 PM                                                                                                                    
MS. BROWN responded  that the early components of  care aspect of                                                               
the waiver focus on the use  of at-risk criteria. She stated that                                                               
once  an  individual  has  to reach  the  threshold  of  severely                                                               
mentally ill  or severely  emotionally disturbed,  the behavioral                                                               
health  condition  is  deteriorating.  She  noted  the  essential                                                               
aspect  of  ensuring  that  individuals   can  engage  in  waiver                                                               
services  and providers  can be  paid  before an  adult or  youth                                                               
reaches the  threshold of Severe  Mental Illness (SMI)  or Severe                                                               
Mental  Disorders  (SMD).  She  mentioned  the  addition  of  the                                                               
service known  as Home Based  Family Treatment that allows  for a                                                               
family to  engage in  services based on  a social  determinate of                                                               
health  that  allows  a  provider   to  bill  for  services.  The                                                               
treatment  plan  strives  to catch  individuals  upstream  before                                                               
symptoms  cascade. She  added that  many state  behavioral health                                                               
providers derive a large percentage  of revenue from school-based                                                               
services. She  informed the committee that  school-based services                                                               
are often billed on an  outpatient fee-for-service continuum. The                                                               
billing mechanism  does not allow  the state to  publish concrete                                                               
data about the revenue Alaskan providers receive.                                                                               
                                                                                                                                
2:15:02 PM                                                                                                                    
MS. BROWN  responded to the  query about cultural  relevance. She                                                               
remarked  that  the  department   requires  all  services  to  be                                                               
culturally relevant. The waiver  requires continuing education to                                                               
meet  the culturally  relevant criteria  for qualified  addiction                                                               
professionals. She  added that providers must  meet the Substance                                                               
Abuse  and  Mental  Health Services  (SAMHSA)  guidelines,  which                                                               
include being culturally relevant and influenced.                                                                               
                                                                                                                                
2:15:56 PM                                                                                                                    
SENATOR  TOBIN  expressed  appreciation   for  the  attention  to                                                               
cultural  relevance. She  reported  reading  Alaska Native  elder                                                               
literature  stating  that  young people  require  education  that                                                               
respects all components of their  psyche, including their spirit,                                                               
language, and food.  She requested more data related  to slide 9,                                                               
indicating that  73 children are receiving  services via Medicaid                                                               
outside the  state. She wondered  about past data  points related                                                               
to children who are receiving Medicaid services out of state.                                                                   
                                                                                                                                
2:17:17 PM                                                                                                                    
CHAIR CLAMAN requested the data going back to 2014.                                                                             
                                                                                                                                
2:17:35 PM                                                                                                                    
MS.   CARPENTER  offered   to  provide   the  data   points.  She                                                               
highlighted that  before the  Bring the  Kids Home  initiative in                                                               
2004, there were  965 kids that were out of  state. Reducing that                                                               
number to  73 shows  the work  the department  has put  into this                                                               
over the last 20 years.                                                                                                         
                                                                                                                                
DR. ZINK offered  to provide detailed information  about the 1115                                                               
grant waiver. She also described  the new Office of School Health                                                               
and Safety and  Office of Healthy and  Equitable Communities. The                                                               
latter  recognizes  the  varying   cultural  needs  in  different                                                               
regions.                                                                                                                        
                                                                                                                                
2:19:06 PM                                                                                                                    
SENATOR KIEHL joined the meeting.                                                                                               
                                                                                                                                
2:19:13 PM                                                                                                                    
CHAIR CLAMAN  referenced the official response  to the Department                                                               
of Justice  letter. He commented  on the reality of  the decision                                                               
Alaska made  years ago  to contract out  almost every  feature of                                                               
behavioral  health  coverage.  He observed  that  absent  massive                                                               
investment to  bring more of  these services in-house,  the state                                                               
has to  rely on  outside entities to  provide these  services. In                                                               
connection  with that,  he mentioned  the  criticisms related  to                                                               
Medicare and Medicaid  rates. He asked if the state  has the same                                                               
issues  getting  providers  for  Medicaid  that  it  has  getting                                                               
providers who will accept Medicare.                                                                                             
                                                                                                                                
2:20:36 PM                                                                                                                    
MS. CARPENTER  stated that rates  are a complex art.  She advised                                                               
that in  Alaska, Medicaid  does pay  more than  Medicare. Another                                                               
consideration is that the host  of services the department offers                                                               
are subject  to Centers  for Medicare  & Medicaid  Services (CMS)                                                               
upper payment  limits. What this  means is that when  somebody is                                                               
facing an  upper payment  limit, it's necessary  to prove  to CMS                                                               
that the payment isn't actually  above Medicare. Most individuals                                                               
do  not  understand  the  nuance   and  that  the  state  has  to                                                               
oftentimes pay lower than Medicare.                                                                                             
                                                                                                                                
2:22:04 PM                                                                                                                    
DR.  ZINK highlighted  that rates  are important,  but there  are                                                               
many  different factors  related to  providing services  within a                                                               
state. Providers need  to be connected to  specialty services but                                                               
they  also need  a  volume  of kids  that  they serve  regularly.                                                               
Further,  the  payment  systems  between  private  insurance  and                                                               
Medicaid need to  align enough that similar care  can be provided                                                               
day-to-day so the payer type doesn't become an issue.                                                                           
                                                                                                                                
2:23:16 PM                                                                                                                    
CHAIR CLAMAN referred to the  official response to the Department                                                               
of Justice (DOJ).  He asked whether there would be  a plan with a                                                               
more specific focus on children.                                                                                                
                                                                                                                                
2:23:51 PM                                                                                                                    
DR. ZINK  replied that the  vision to  address the DOJ  report is                                                               
for  children and  behavioral  health services.  The  hope is  to                                                               
build on  that to provide  support for physical,  mental, social,                                                               
and  cultural  health.  The  department  is  talking  with  other                                                               
regional workers about how they can help support this effort.                                                                   
                                                                                                                                
CHAIR  CLAMAN commented  that children  can often  get lost  when                                                               
there are larger numbers of adults.                                                                                             
                                                                                                                                
2:24:25 PM                                                                                                                    
SENATOR  GIESSEL  referenced  Ms.  Brown's  statement  about  the                                                               
difficulty  parsing  out who  was  getting  care in  school-based                                                               
services. She asked whether there was a specific code for that.                                                                 
                                                                                                                                
MS. BROWN replied that school  based services are distinct but do                                                               
not represent  the full continuum  of behavioral  health services                                                               
being  provided in  schools. There  is the  nuance between  using                                                               
place  of service  school and  place of  service 99,  and DBH  is                                                               
working with providers to ensure proper coding.                                                                                 
                                                                                                                                
SENATOR GIESSEL  underscored the importance of  school funding so                                                               
these  venues  are  available  for   children  to  receive  these                                                               
services.                                                                                                                       
                                                                                                                                
CHAIR CLAMAN  invited Jen Griffis  to offer her perspective  as a                                                               
parent with a child in the system.                                                                                              
                                                                                                                                
2:26:34 PM                                                                                                                    
JEN GRIFFIS, representing self,  Fairbanks, Alaska, delivered the                                                               
presentation,  "Behavioral Health  Systems  of  Care, A  Parent's                                                               
Perspective." She explained  that she adopted two  girls from the                                                               
foster care system  and that one of her  daughters had behavioral                                                               
problems.  By  the time  her  daughter  was  six years  old,  the                                                               
behavioral  problems began  to eclipse  her parenting  abilities.                                                               
She  stated that  her husband  was a  physician, and  she was  an                                                               
educator, so  they understood systems  and research.  Even though                                                               
they  had  money   and  privilege,  they  were   unable  to  find                                                               
appropriate  and available  services.  She and  her husband  were                                                               
concerned for the family's safety.  After months without answers,                                                               
they  landed on  in-patient hospitalization  as the  only option.                                                               
They  drove  three hours  to  the  nearest pediatric  psychiatric                                                               
hospital  and left  their six-year-old  daughter with  strangers.                                                               
She noted  that the hospitalization  in 2012 was followed  by two                                                               
more over the next six  weeks. She tried piecing together support                                                               
options and  attempted a therapeutic home  setting, but intensive                                                               
community  services   were  lacking  statewide.   After  multiple                                                               
treatment  failures,  the  family  sought  residential  treatment                                                               
options.  Following  placement   in  residential  treatment,  the                                                               
family worked  with the  case management  team to  transition her                                                               
daughter back into the community.  This was never successful; her                                                               
daughter's intense  level of  needs did  not match  the available                                                               
community  services. The  lack of  residential treatment  options                                                               
meant that she grew up  in multiple facilities in multiple states                                                               
over several years.                                                                                                             
                                                                                                                                
MS. GRIFFIS  informed the committee  that she served as  a parent                                                               
representative  for  the  plaintiff's  mediation  team  during  a                                                               
lawsuit in Idaho,  fighting for better mental  health options for                                                               
children  in the  state. She  participated in  mediation meetings                                                               
for  over  a  year  before   transitioning  into  the  settlement                                                               
agreement with planning and implementation  of the new children's                                                               
behavioral  health  system.  She  continued  to  support  various                                                               
aspects of the implementation for the next eight years.                                                                         
                                                                                                                                
2:32:00 PM                                                                                                                    
MS. GRIFFIS  stated that during  her time advocating for  the new                                                               
system,  her family  continued to  struggle to  access the  right                                                               
level  of  services  for  their  daughter.  She  experienced  the                                                               
impacts  of  the  system  she   was  advocating  to  change.  She                                                               
expressed  pride in  her efforts  to infuse  the parent  voice in                                                               
every  aspect  of  the children's  behavioral  health  system  in                                                               
Idaho.  She   noted  that  other   parents'  words,   ideas,  and                                                               
experiences were central to the  planning, design, and evaluation                                                               
of the system. She offered  to provide the committee with greater                                                               
context  for  systems  of  care  and  thoughtful  recommendations                                                               
related to the planning process in Alaska.                                                                                      
                                                                                                                                
2:33:00 PM                                                                                                                    
MS.  GRIFFIS spoke  to the  slide titled,  "What is  a System  of                                                               
Care."                                                                                                                          
                                                                                                                                
      • Term "system of care" was first used by Stroul and                                                                      
        Friedman in 1986                                                                                                        
     • Core values of a System of Care                                                                                          
          Family-driven and youth-guided                                                                                        
          Community-based                                                                                                       
          Culturally and linguistically competent                                                                               
     • Guiding principles for a System of Care                                                                                  
          broad-base of services, individualized, least                                                                         
          restrictive,   family/youth   engagement,   cross-                                                                    
          system     collaboration,     care     management,                                                                    
          developmentally     appropriate,    transition-age                                                                    
          supports,    prevention,     continuous    quality                                                                    
          improvement,  protects   individual  rights,  non-                                                                    
          discriminatory                                                                                                        
                                                                                                                                
2:35:12 PM                                                                                                                    
MS.   GRIFFIS   continued   to  the   slide   "System   of   Care                                                               
Implementation."                                                                                                                
                                                                                                                                
     • Challenges:                                                                                                              
        o Unequal implementation across states                                                                                  
        o Limited access to community-based services in                                                                         
          certain populations                                                                                                   
            children with a higher-level of need                                                                                
            families in rural communities                                                                                       
     • Result:                                                                                                                  
        o Investigations and lawsuits across the country                                                                        
          related to a lack of community-based services and                                                                     
          continued reliance on residential treatment                                                                           
                                                                                                                                
2:36:28 PM                                                                                                                    
MS. GRIFFIS spoke to the slide "Alaska's Strengths."                                                                            
                                                                                                                                
     • Medicaid waivers                                                                                                         
         • Relationships with tribal partners and other                                                                         
        stakeholders                                                                                                            
     • State-level legislation                                                                                                  
          crisis intervention                                                                                                   
          telehealth opportunities                                                                                              
                                                                                                                                
                                                                                                                                
2:37:10 PM                                                                                                                    
MS. GRIFFIS spoke to the slide "Lessons from Other States."                                                                     
                                                                                                                                
      • Parents and youth should be equal partners, at the                                                                      
        treatment level and at the system level.                                                                                
     • Medicaid is a funding source, not a system design.                                                                       
      • Person-centered data tells stories and transforms                                                                       
        systems.                                                                                                                
                                                                                                                                
2:39:40 PM                                                                                                                    
MS. GRIFFIS spoke  to the ripple effect of  stories when services                                                               
are not available.  When the right level of care  is available at                                                               
the right time,  the ripple effects can be  success in education,                                                               
positive relationships,  and goals  for the future.  She stressed                                                               
the need for collaboration and  intention to transform children's                                                               
mental health systems.                                                                                                          
                                                                                                                                
2:40:42 PM                                                                                                                    
SENATOR TOBIN emphasized the importance of qualitative data                                                                     
because focusing solely on quantitative data misses the stories.                                                                
                                                                                                                                
2:41:15 PM                                                                                                                    
SENATOR GIESSEL applauded the speaker.                                                                                          
                                                                                                                                
CHAIR CLAMAN  thanked Ms. Griffis  for highlighting that  this is                                                               
very  person-based and  it's  a reminder  that  children are  the                                                               
state's greatest resource.                                                                                                      
                                                                                                                                
2:42:25 PM                                                                                                                    
CHAIR  CLAMAN moved  to  the next  presenter  and explained  that                                                               
Shelley  Ebenal  was  invited   because  the  hospital's  capital                                                               
request  focuses   on  providing   mental  health   services  for                                                               
children.                                                                                                                       
                                                                                                                                
2:43:24 PM                                                                                                                    
SHELLEY   EBENAL,   CEO,   Foundation  Health   Partners   (FHP),                                                               
Fairbanks,   Alaska,  delivered   the  presentation,   "Fairbanks                                                               
Memorial   Hospital   Inpatient   Behavioral   Health   Expansion                                                               
Proposal."  She  advised  that FHP  operates  Fairbanks  Memorial                                                               
Hospital, Denali  Center, and Tanana  Valley Clinic.  She relayed                                                               
that the Department  of Justice investigation was a  new twist on                                                               
an old problem.  She reinforced that the heart of  the problem is                                                               
that children are in crisis.                                                                                                    
                                                                                                                                
2:44:57 PM                                                                                                                    
MS. EBENAL  displayed slide 2  which shows  the logos for  the 56                                                               
participants in the Interior Pediatric Behavioral Health Summit.                                                                
                                                                                                                                
2:45:17 PM                                                                                                                    
MS. EBENAL moved  to slide 3, "Visualizing Gaps  in Our Continuum                                                               
of  Care." The  graphic  provides a  visual of  the  gaps in  the                                                               
existing continuum of care in  the Interior. It shows substantial                                                               
gaps  in residential  and stabilization  treatment for  children.                                                               
She  relayed  that FHP  was  proposing  an adolescent  behavioral                                                               
health unit  and the expansion  of the adult unit.  State funding                                                               
is required for this expansion.                                                                                                 
                                                                                                                                
2:45:46 PM                                                                                                                    
MS. EBENAL reviewed slide 5, "Capital Request Summary."                                                                         
                                                                                                                                
     Capital Construction Expense: $5,400,000                                                                                 
                                                                                                                                
     $3.4 Million   State Capital Request                                                                                       
     $1.0 Million   Alaska Mental Health Trust Capital Request                                                                  
     $1.0 Million   Rasmuson Foundation Capital Request                                                                       
     $5.4 Million                                                                                                               
                                                                                                                                
2:46:18 PM                                                                                                                    
MS. EBENAL spoke to slide 6, "Pediatric Service Gap."                                                                           
                                                                                                                                
     Every day  we are boarding pediatric  behavioral health                                                                    
     patients in the Emergency Department (ED).                                                                                 
                                                                                                                                
        • The average length of stay for these patients is                                                                      
          114.94 hours.                                                                                                         
        • Emergency    Departments    are   not    conducive                                                                    
          environments for appropriate evaluation and                                                                           
          psychiatric treatment of children or adults.                                                                          
        • Almost all of these patients would qualify for                                                                        
          treatment in a pediatric inpatient unit and avoid                                                                     
          transfer outside of the community or State.                                                                           
        • There is no adolescent inpatient psychiatric care                                                                     
          for the children in Interior and Northern Alaska.                                                                     
                                                                                                                                
2:46:56 PM                                                                                                                    
MS. EBENAL continued to slide 7, "Pediatric Service Gap                                                                         
Continued."                                                                                                                     
                                                                                                                                
     FMH  sees about  350  unique pediatric  patients for  a                                                                  
     primary  behavioral health  reason each  year who  need                                                                  
     multiple days  of care. Patients stay  in the emergency                                                                    
     department as our case  managers search for appropriate                                                                    
     treatment placement outside of Fairbanks.                                                                                  
                                                                                                                                
     Almost  all   of  these  patients  would   qualify  for                                                                    
     adolescent  inpatient   behavioral  health   care.  FHP                                                                  
     estimates that  each patient's inpatient stay  would be                                                                  
     4-7  days,  creating  an  average  daily  census  of  a                                                                  
     minimum of  3.8 patients per  day. That means  our unit                                                                  
     would be  at capacity every  day of the  year. Creating                                                                    
     this access  to inpatient  care within  Northern Alaska                                                                    
     and Interior Alaska would give  relief to a region that                                                                    
     doesn't currently have options for pediatric patients.                                                                     
                                                                                                                                
     Capital funding  will allow reconstruction  of existing                                                                    
     space   following   strict    and   expensive   Federal                                                                    
     Guidelines  for  a   four-bed  child  psychiatric  unit                                                                    
     within Fairbanks Memorial Hospital.                                                                                        
                                                                                                                                
2:48:04 PM                                                                                                                    
MS.  EBENAL moved  to slide  8,  "Emergency Department  Seclusion                                                               
Room." She  acknowledged that the  picture of the  exclusion room                                                               
should  disturb everyone.  It's a  rubber room  without amenities                                                               
where the individual is physically  safe until they can be placed                                                               
appropriately.  A psychiatrist  once  described the  room as  the                                                               
place where children are warehoused until they can be placed.                                                                   
                                                                                                                                
2:48:30 PM                                                                                                                    
MS. EBENAL spoke to slide 9, "Adult Service Gap."                                                                               
                                                                                                                                
     The  current   makeup  of   the  FMH   adult  inpatient                                                                    
     Behavioral  Health Unit  (BHU)  is located  on the  4th                                                                    
     Floor at  FMH. It consists  of 20 inpatient  beds; four                                                                    
     beds provide  intensive care  and sixteen  beds provide                                                                    
     intermediate care.                                                                                                         
                                                                                                                                
        • Over the last three years, the acuity of our                                                                          
          adult behavioral health patients has continued to                                                                     
          escalate.                                                                                                             
        • More patients require admission to the intensive                                                                      
          unit, prior to moving out to the intermediate                                                                         
          unit.                                                                                                                 
        • Due to limited beds in the intensive unit, more                                                                       
          adult patients must remain in the emergency                                                                           
          department without full treatment while awaiting                                                                      
          placement in the appropriate location.                                                                                
        • We are also often unable to accommodate acute                                                                         
          patient transfers from other locations due to our                                                                     
          space limitations.                                                                                                    
                                                                                                                                
2:49:13 PM                                                                                                                    
MS. EBENAL continued to slide  10, "Adult Service Gap Continued."                                                               
It includes a line graph that  shows the average daily census for                                                               
the  Intermediate   Behavioral  Health  Unit  in   blue  and  the                                                               
Intensive Behavioral Health Unit in red.                                                                                        
                                                                                                                                
     The proposal  is to add  2 additional acute  care rooms                                                                    
     to the  4 room  intensive care  unit for  a total  of 6                                                                    
     rooms to meet the adult treatment needs.                                                                                   
                                                                                                                                
     When   an  adult   patient  meets   the  criteria   for                                                                    
     admission,  they  are   transferred  by  the  emergency                                                                    
     department to  the behavioral health unit.  The average                                                                    
     census by month in 2022  for the behavioral health unit                                                                    
     was 12.2,  but in some  months, it  was as high  as 15.                                                                    
     That  is taxing  on  our 20-bed  unit, especially  when                                                                    
     only 4  of those beds can  accommodate patients needing                                                                    
     higher acuity care.                                                                                                        
                                                                                                                                
     The blue  line represents patients in  the intermediate                                                                    
     unit.  The   red  line   represents  patients   in  the                                                                    
     intensive  unit. These  two numbers  together represent                                                                    
     the  average daily  census  for  the behavioral  health                                                                    
     unit (BHU).                                                                                                                
                                                                                                                                
2:49:47 PM                                                                                                                    
MS. EBENAL  discussed slide 11, "Facility  Upgrade Proposal." The                                                               
approximate capital expense  is $5.4 million. It  shows the floor                                                               
plans  for the  proposed pediatric  inpatient unit  with low  and                                                               
high acuity care areas.                                                                                                         
                                                                                                                                
She highlighted that  the solution for the  current situation has                                                               
to involve  both the  state and  communities. The  challenges are                                                               
considerable. FHP could  open a new unit right  now, but wouldn't                                                               
be able  to staff it.  The proposal is  to build a  four-bed unit                                                               
next  to  the   inpatient  unit  so  resources   can  be  shared.                                                               
Psychiatrists on staff are board  certified for child psychiatry.                                                               
The  proposal  is also  for  two  more  acute  beds to  take  the                                                               
pressure off the Emergency Department.                                                                                          
                                                                                                                                
MS. EBENAL thanked the state  and administration for helping from                                                               
an operational  perspective and expressed hope  that capital help                                                               
would also be forthcoming.                                                                                                      
                                                                                                                                
SENATOR GIESSEL  commented that the  information in the  last two                                                               
presentations moved  the committee.  She stated that  the finance                                                               
committee was working hard to  restrain the size of the dividend,                                                               
which would make it possible  for these kinds of improvements and                                                               
delivery of services. Everyone would benefit.                                                                                   
                                                                                                                                
CHAIR CLAMAN stated  that he had no intention  of supplanting the                                                               
role of the  finance committee in making such  decisions, but the                                                               
Fairbanks presentation  in particular  highlights a plan  for the                                                               
long term. He agreed with  Senator Giessel's comments about where                                                               
the state is spending its money.                                                                                                
                                                                                                                                
2:53:31 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Claman  adjourned the  Senate Judiciary  Standing Committee                                                               
meeting at 2:53 p.m.