Legislature(2023 - 2024)BELTZ 105 (TSBldg)

01/25/2023 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:33:26 PM Start
01:34:05 PM Presentation: Alaska Hospital and Healthcare
02:17:33 PM Presentation: South Central Foundation Workforce Overview
02:40:27 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconferenced --
+ Workforce Overview from the Medical Industry TELECONFERENCED
Perspective
Presentation: Alaska State Hospital and Nursing
Home Association by Jared Kosin, President & CEO
Presentation: South Central Foundation by Karen
McIntire, VP of Workforce
Additional Presenters TBA
**Streamed live on AKL.tv**
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 25, 2023                                                                                        
                           1:33 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Click Bishop, Vice Chair                                                                                                
Senator Kelly Merrick                                                                                                           
Senator Forrest Dunbar                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: ALASKA HOSPITAL AND HEALTHCARE                                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION: SOUTH CENTRAL FOUNDATION WORKFORCE OVERVIEW                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JARED KOSIN, President and CEO                                                                                                  
Alaska Hospital and Healthcare Association (AHHA)                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Presented an overview titled Alaska's                                                                     
Healthcare Workforce "Problem."                                                                                                 
                                                                                                                                
KAREN MCINTIRE, Vice President of Workforce                                                                                     
Southcentral Foundation                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Presented "Workforce Overview from the                                                                    
Medical Industry Perspective."                                                                                                  
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:26 PM                                                                                                                    
CHAIR  JESSE  BJORKMAN  called  the  Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 1:33 p.m.  Present at the                                                               
call to  order were Senators  Dunbar, Merrick, Bishop,  and Chair                                                               
Bjorkman.                                                                                                                       
                                                                                                                                
^PRESENTATION: ALASKA HOSPITAL AND HEALTHCARE                                                                                   
          PRESENTATION: ALASKA HOSPITAL AND HEALTHCARE                                                                      
                                                                                                                                
1:34:05 PM                                                                                                                    
CHAIR BJORKMAN  announced a presentation  by the  Alaska Hospital                                                               
and Healthcare  Association (AHHA). He  invited Mr. Kosin  to put                                                               
himself  on the  record and  begin his  slideshow of  the medical                                                               
industry's workforce challenges.                                                                                                
                                                                                                                                
1:35:48 PM                                                                                                                    
JARED KOSIN,  President and CEO,  Alaska Hospital  and Healthcare                                                               
Association,  Anchorage,  Alaska,  presented an  overview  titled                                                               
Alaska's Healthcare Workforce "Problem."  He advanced to slide 2,                                                               
which  pictures  a map  showing  Alaska  locations with  critical                                                               
access   hospitals  (co-located   nursing   homes),  rural   demo                                                               
hospitals/sole   community  hospitals,   acute  care   hospitals,                                                               
other/specialty  hospitals,  and  standalone nursing  homes.  The                                                               
slide contains the following description of the association:                                                                    
                                                                                                                                
                Advancing Healthcare for Alaska                                                                                 
                                                                                                                                
     For  70   years,  the  Alaska  Hospital   &  Healthcare                                                                    
     Association  (AHHA) has  served as  a non-profit  trade                                                                    
     association  representing  Alaska's hospitals,  nursing                                                                    
     homes,  and   other  healthcare  partners   across  the                                                                    
     continuum of care.                                                                                                         
                                                                                                                                
     AHHA  members   play  an   invaluable  role,   both  as                                                                    
     community   providers  and   essential  employers,   in                                                                    
     cities, towns, and villages across Alaska.                                                                                 
                                                                                                                                
     AHHA provides policy and  advocacy expertise, leads and                                                                    
     hosts  opportunities for  education  and training,  and                                                                    
     brings   together   members    and   stakeholders   for                                                                    
     collaborative work  to share data, resources,  and best                                                                    
     practices.                                                                                                                 
                                                                                                                                
     AHHA's mission  is to advance  the shared  interests of                                                                    
     Alaska  healthcare to  build an  innovative sustainable                                                                    
     system of care for all Alaskans.                                                                                           
                                                                                                                                
MR.  KOSIN said  the association  has  been in  Alaska for  seven                                                               
years. He  indicated that today's slideshow  focuses on workforce                                                               
challenges.  All   the  data  in  the   presentation  flows  from                                                               
statistics  and  analyses  in  the  Alaska  Healthcare  Workforce                                                               
Analysis   report.  The   Department  of   Labor  and   Workforce                                                               
Development  (DOLWD)  provided  the  data  for  the  report.  The                                                               
presentation will follow this outline:                                                                                          
                                                                                                                                
     1. Industry footprint                                                                                                      
     2. Worker shortage                                                                                                         
        • Ecosystem growth / need                                                                                               
        • The dominant position                                                                                                 
        • Shortages everywhere                                                                                                  
     3. The consequences                                                                                                        
     4. What should we do?                                                                                                      
                                                                                                                                
1:38:09 PM                                                                                                                    
MR. KOSIN  reviewed slide 3,  Industry Footprint:  Healthcare. He                                                               
said Alaska  pays out $3 billion  in direct wages, more  than any                                                               
sector in Alaska.  The industry is responsible for  12 percent of                                                               
all  earnings,  outpacing  the   military  and  natural  resource                                                               
sectors.  It  accounts  for  about 43,000  jobs,  11  percent  of                                                               
Alaska's  workforce.   The  industry   is  second  only   to  the                                                               
retail/wholesale   trade   sector.   Expanded  to   include   the                                                               
multiplier  effect,  the  total  impact  of  Alaska's  healthcare                                                               
sector was 75,060  jobs across the state's economy,  with a total                                                               
Alaska income impact of $4.4 billion in 2021.                                                                                   
                                                                                                                                
MR.  KOSIN  said the  association  would  not argue  against  the                                                               
assertion that these  statistics are a double-edged  sword due to                                                               
the  high  cost of  healthcare.  He  announced this  presentation                                                               
focuses  on workforce  shortages, not  healthcare costs.  He said                                                               
the industry has  a lot of jobs available because  there is a lot                                                               
of  need,  emphasizing  the  jobs pay  well.  The  positions  are                                                               
essential to Alaska's economy and  will provide young people with                                                               
challenging, well-paid career opportunities.                                                                                    
                                                                                                                                
1:39:25 PM                                                                                                                    
MR.  KOSIN  reviewed slide  4,  Ecosystem  Growth /  Need.  Every                                                               
healthcare  position in  Alaska  is projected  to  grow, and  the                                                               
array of jobs is much broader than just doctors and nurses.                                                                     
                                                                                                                                
MR.  KOSIN  likened the  healthcare  workforce  to an  ecosystem,                                                               
stating  hospitals   employ  doctors  and  nurses,   as  well  as                                                               
maintenance workers,  orderlies, food workers,  delivery workers,                                                               
and clinical  and non-clinical jobs. The  whole operation suffers                                                               
if any position  is understaffed. Patients and  visitors will not                                                               
get  food if  the cafeteria  is  understaffed; it  will shut  the                                                               
hospital down.  The same goes  for staff that changes  linens. If                                                               
rooms fail  to be changed, patients  will be stuck waiting  for a                                                               
bed in the  emergency room, creating a ripple  effect until rooms                                                               
are ready. He said the  healthcare industry has opportunities for                                                               
everybody, not  just doctors and nurses.  The workforce ecosystem                                                               
is  critical  to  comprehend   because  the  healthcare  industry                                                               
expects to add 4,500 new jobs  over the next ten years, more than                                                               
any other sector  in Alaska. The industry  experienced 28 percent                                                               
wage growth from  2016 to 2021. Alaska is ranked  first or second                                                               
in the U.S.  in 18 categories of healthcare  positions; other job                                                               
categories typically rank third or fourth.                                                                                      
                                                                                                                                
MR. KOSIN switched  gears from the positive aspects  of a growing                                                               
economic  sector to  exploring  the downside.  He  said that  the                                                               
healthcare industry needs  7,500 new workers every year.  It is a                                                               
daunting  prospect. Of  that 7,500,  the  most dominant  position                                                               
needed is registered  nurse. Alaska will require  more than 1,500                                                               
annually. He  defined a recruit  as someone outside  the industry                                                               
instead  of  someone  moving  laterally  or  upwards  within  the                                                               
industry. He  drew attention to the  "Annual Healthcare Workforce                                                               
Development Needs" graphic, stating  the chart creates the bulls-                                                               
eye effect; the bigger the bubble,  the greater the need for that                                                               
particular position. The chart  compares Alaska's workforce needs                                                               
and  salary with  the  rest  of the  country.  He emphasized  the                                                               
extra-large  bulls-eye   in  the   center  of  the   chart  shows                                                               
registered nursing in the dominant position.                                                                                    
                                                                                                                                
1:42:49 PM                                                                                                                    
MR. KOSIN reviewed slide 5,  The Dominant Position. Hospitals are                                                               
the  largest employer  in the  healthcare  industry. They  employ                                                               
about  34 percent  of all  healthcare  workers and  pay about  40                                                               
percent  of  healthcare  wages.   He  reiterated  that  the  most                                                               
dominant  field  in the  healthcare  industry  is the  registered                                                               
nurse. Registered nurses account for  the highest number of total                                                               
workers and 18 percent of all healthcare wages.                                                                                 
                                                                                                                                
MR.  KOSIN  directed  attention  to  the  Registered  Nursing.org                                                               
chart, stating  Alaska is expected  to lead the United  States in                                                               
nursing  vacancies  by  2030  with a  23  percent  shortfall.  He                                                               
interpreted  these statistics,  stating Alaska  will be  short by                                                               
about a quarter  of the workforce by 2030. One  in four positions                                                               
will remain open.  He said that the labor situation  is tight and                                                               
tough  now, but  Alaska  is  projected to  be  the  worst in  the                                                               
country in terms of state needs.                                                                                                
                                                                                                                                
1:44:09 PM                                                                                                                    
MR. KOSIN  reviewed slide 6,  Shortages Everywhere.  He described                                                               
Alaska's career development  pipeline, stating accredited nursing                                                               
programs in  Alaska produce about 324  registered nurse graduates                                                               
per  year. Boil  that down,  and Alaska's  324 registered  nurses                                                               
fail  to  meet the  demand  of  1,500  needed yearly  to  provide                                                               
adequate services. He said there  are seven priority positions in                                                               
Alaska,  respiratory  therapists,  certified  nursing  assistants                                                               
(CNA),  and nurses,  to name  a few.  He said  Alaska could  only                                                               
train  13 percent  of the  workers needed.  Alaska has  a massive                                                               
labor deficit.                                                                                                                  
                                                                                                                                
MR. KOSIN  explored options to  solve the labor  deficit problem.                                                               
One option is to rely  on nonresident healthcare workers. This is                                                               
an option  many industries rely  on in Alaska. Eleven  percent of                                                               
the healthcare  workforce were nonresidents  in 2021,  with about                                                               
5,000  workers.   Interestingly,  about   23  percent   of  these                                                               
nonresident  workers remain  in Alaska  and attain  residency. If                                                               
four people  come to  Alaska, whether they  are traveling  or are                                                               
temporary  workers,  there  is  a  one  out  of  four  chance  an                                                               
individual  will  stay.  He  said this  is  an  important  detail                                                               
considering   the  labor   deficit  mentioned   above.  This   is                                                               
significant  because healthcare  has the  highest nonresident-to-                                                               
resident conversion in  the state compared to  all other sectors.                                                               
This is an  important detail from a  recruiting standpoint. While                                                               
the state  frowns on  out-of-state recruiting,  the good  news is                                                               
Alaska may retain some of  those people. He emphasized that there                                                               
are plenty of jobs to go around.  There is no threat of taking an                                                               
Alaskan's  job, reminding  members  that  registered nurses  will                                                               
graduate at a rate of 324 per year versus 1,500 in demand.                                                                      
                                                                                                                                
1:47:01 PM                                                                                                                    
SENATOR  BISHOP asked  how many  nursing students  the university                                                               
turned away.                                                                                                                    
                                                                                                                                
MR.  KOSIN  prefaced  his  response,   stating  this  is  not  to                                                               
disparage  the  University  of   Alaska  with  this  answer.  The                                                               
university has  the largest nursing  program. However,  for every                                                               
student  who  sits in  an  incoming  class, two  applicants,  who                                                               
qualified, and  were accepted, are turned  away due to a  lack of                                                               
room in the program.                                                                                                            
                                                                                                                                
SENATOR  BISHOP sought  confirmation  that  the university  could                                                               
potentially  graduate  660  nurses  if  the  university  had  the                                                               
capacity.                                                                                                                       
                                                                                                                                
MR. KOSIN answered yes.                                                                                                         
                                                                                                                                
1:47:49 PM                                                                                                                    
SENATOR  DUNBAR asked  whether  AHHA  member organizations  would                                                               
financially assist  or consider moving towards  an apprenticeship                                                               
model to  help grow the number  of nurses to 600  annually and to                                                               
increase the number of healthcare workers overall.                                                                              
                                                                                                                                
MR. KOSIN answered yes. He declared  that AHHA would reply yes to                                                               
virtually  any question  about growing  the number  of nurses  in                                                               
Alaska. He noted  that if Alaska could produce  600 nurses, there                                                               
would still be a massive nurse  deficit. AHHA is working with the                                                               
university  and  other programs.  The  association  has not  used                                                               
apprenticeships in healthcare as  it should, meaning the industry                                                               
and state  need to  embrace a  model change  because the  need is                                                               
great. The  big bottleneck on  the education  side is a  need for                                                               
more educators. Nurse  educators make so much money  in the field                                                               
now that  finding a  nurse to  teach is  impossible. There  is no                                                               
incentive to  teach. The  nursing program  waitlist is  long; the                                                               
nurse  faculty availability  list is  short. AHHA  would consider                                                               
pulling resources  and contributing  to increasing pay  to expand                                                               
the nurse  program's capacity. Another  limiting factor  is space                                                               
to run  students through their hospital  clinicals, another piece                                                               
AHHA supports  making work. AHHA  is a yes  to any ideas  to help                                                               
this problem, especially a local solution.                                                                                      
                                                                                                                                
1:49:53 PM                                                                                                                    
MR.  KOSIN advanced  to slide  8 to  discuss the  consequences of                                                               
workforce  shortages. He  offered these  statistics to  establish                                                               
the framework for his discussion:                                                                                               
                                                                                                                                
-  CNAs  are the  lifeblood  of nursing  homes  and critical  for                                                               
   hospitals.                                                                                                                   
   CNAs are running at a 22 percent vacancy rate.                                                                               
   It takes 108 days, on average, to fill a single position.                                                                    
 - In hospitals and nursing homes, nurse positions are running                                                                  
   at a 24 percent vacancy rate on average over the course of                                                                   
   the last year.                                                                                                               
   It took 161 days, on average, to fill a single position.                                                                     
-  He expressed his belief  that respiratory therapists have a 38                                                               
   percent shortfall.                                                                                                           
-  Sterile  processing and  cleaning instruments  have a  similar                                                               
   shortfall range.                                                                                                             
                                                                                                                                
1:51:34 PM                                                                                                                    
MR. KOSIN said  he spent considerable time  outlining the nursing                                                               
shortage because  this is  the dominant  group, but  high vacancy                                                               
rates exist  across the  board. Vacancy rates  and the  amount of                                                               
time it  takes to fill  a position have become  alarming. Vacancy                                                               
rates have risen due to recruitment  delays and the time it takes                                                               
to obtain a license and  process a background check. The industry                                                               
has  vacancies   across  the  board;   they  are   getting  worse                                                               
everywhere.   Limited  staff   means  limited   hospital  access,                                                               
community-based  services, and  pediatricians' offices  alike. He                                                               
explained that all  the open hospital beds and  hospital rooms in                                                               
the  world are  unusable without  staff to  clean them  and offer                                                               
services.  Limited  access  means  less  revenue,  especially  in                                                               
nursing  homes. Alaska  is  set up  on  a volume-based,  fee-for-                                                               
service system.  Less staff in  nursing homes results  in closed-                                                               
down units  and less revenue,  and yet,  simultaneously, services                                                               
become  more  expensive  due  to  overtime  costs  and  incentive                                                               
payouts. Increased  staff burnout  means hiring  replacements and                                                               
competing  with other  organizations  for  traveling workers.  He                                                               
added  that  inflation  is  causing   the  cost  of  supplies  to                                                               
increase. He  wrapped up the discussion  on consequences, stating                                                               
lower  revenue, more  expensive  services,  and increased  supply                                                               
costs due to  inflation led to the following  headlines, which he                                                               
clipped from newspapers last month:                                                                                             
                                                                                                                                
        Juneau hospice and nursing home closures are the                                                                        
     latest symptom of the nation's nursing shortage.                                                                           
                                                                                                                                
1:54:07 PM                                                                                                                    
MR. KOSIN commented on the  snippet, stating the state will start                                                               
to   experience    massive   losses   and   see    closures   and                                                               
consolidations.  A consolidation  is effectively  a closure  that                                                               
looks a little different.                                                                                                       
                                                                                                                                
       Local hospitals running near capacity as flu, RSV                                                                        
     cases rise.                                                                                                                
                                                                                                                                
     Juneau's hospital is losing more than $1M a month.                                                                         
                                                                                                                                
     Bartlett (Alaska) Regional Hospital, Wildflower Court                                                                      
     to merge.                                                                                                                  
                                                                                                                                
     Providence's operating loss grows to $1.1B for 2022.                                                                       
                                                                                                                                
        This Sunday, we will have had a patient in house                                                                        
     waiting for long-term care for 1 year.                                                                                     
                                                                                                                                
MR. KOSIN  said these headlines  represent visible cracks  in the                                                               
system.  He drew  attention to  the  last snippet  on the  slide,                                                               
stating the patient  should have been discharged  to a post-acute                                                               
care facility  but sat 365  days too  long in a  hospital because                                                               
there was  nowhere for that  person to  go, no availability  in a                                                               
post-acute care facility, and no  staff to increase availability.                                                               
Other ancillary issues  stem from a situation like  this, such as                                                               
navigating the courts on supervision,  custody, and other matters                                                               
of  this   nature.  Challenges  on  the   Medicaid  side  include                                                               
eligibility.  All  of   this  causes  people  to   get  stuck  in                                                               
hospitals.  He  said hospitals  get  paid  based on  meeting  the                                                               
criteria   of   care.  A   patient   that   no  longer   requires                                                               
hospitalization but is  stuck in one fails to  meet the criteria.                                                               
In this  example, the hospital  was not compensated for  365 days                                                               
of  services,  which  included  nursing  rounds,  meals,  orderly                                                               
services, etc.                                                                                                                  
                                                                                                                                
1:56:02 PM                                                                                                                    
SENATOR  BISHOP directed  attention  to  the Providence  Hospital                                                               
news snippet, which  indicated an operating loss  of $1.1 billion                                                               
in  2022. He  asked whether  the operating  cost would  have been                                                               
zero with a plus sign if Providence was fully staffed.                                                                          
                                                                                                                                
MR.  KOSIN speculated  on the  answer, stating  this analysis  is                                                               
difficult due  to factors like inflation,  supply cost increases,                                                               
traveler  pay, and  bonuses. Still,  if the  staffing piece  were                                                               
solved,  Providence's  operating  losses  would  be  a  different                                                               
story. He  expressed his belief that  it would be fair  to say if                                                               
all  systems were  operating  satisfactorily, meaning  Providence                                                               
Hospital was fully  staffed, and incoming patients  cared for and                                                               
discharged appropriately  and timely,  the hospital  would either                                                               
experience reduced  loss or  zero with  a plus.  This is  how the                                                               
model of  care works. He  snipped the  clip from a  national news                                                               
story,  and  $1.1B  was  a cumulative  number  from  a  financial                                                               
disclosure.                                                                                                                     
                                                                                                                                
SENATOR BISHOP remarked  it is apples and oranges  to compare the                                                               
healthcare  labor  shortage  with  food security,  but  they  are                                                               
fundamentally  parallel.  He  pointed  out the  severity  of  the                                                               
issue, stating if a mass  casualty event occurred in Fairbanks or                                                               
Anchorage today, the injured would have nowhere to go.                                                                          
                                                                                                                                
MR. KOSIN echoed the same  sentiment. The fix is more challenging                                                               
than changing  a law. The  issue requires a  big-picture approach                                                               
to  resolution,  not  only  considering  the  problems  occurring                                                               
within  facilities but  everything occurring  outside facilities.                                                               
Community-based  services  are  not   robust  enough  to  support                                                               
hospital  discharges  and  placements,  and  those  organizations                                                               
suffer  from worker  shortages too.  The cascading  effect pushes                                                               
everyone  into hospitals,  and hospitals  are not  compensated in                                                               
the  end. This  is one  reason the  cost of  healthcare is  high.                                                               
People are funneled into the  most expensive environment of care.                                                               
The hospital is the last stop when there is nowhere else to go.                                                                 
                                                                                                                                
1:59:04 PM                                                                                                                    
SENATOR MERRICK asked  what major factors attributed  to the need                                                               
for 7,500 new healthcare workers every year.                                                                                    
                                                                                                                                
MR. KOSIN  answered it is  a combination of increased  demand for                                                               
services due  to an aging  population and worker  turnover rates.                                                               
He  said  the  number  is  derived by  analyzing  the  number  of                                                               
patients  funneling  through  over  four  quarters  and  employee                                                               
turnover rates.                                                                                                                 
                                                                                                                                
2:00:04 PM                                                                                                                    
MR.  KOSIN advanced  to  slide  9, stating  this  is a  long-term                                                               
problem and requires a long-term  solution. The process will take                                                               
10 to 15  years to yield results. He reviewed  slide 9 to summate                                                               
solutions to grow the healthcare workforce:                                                                                     
                                                                                                                                
     Healthcare Workforce Strategy                                                                                              
     2022-2025                                                                                                                  
                                                                                                                                
     Pipeline                                                                                                                   
     Forge  strong   partnerships  between   the  healthcare                                                                    
     industry, schools, and students  to recruit, train, and                                                                    
     graduate   healthcare   professionals    to   build   a                                                                    
     sustainable workforce pipeline in Alaska.                                                                                  
                                                                                                                                
MR. KOSIN said a huge piece  in solving the workforce shortage is                                                               
increasing  faculty  pay,  classroom  size,  and  the  number  of                                                               
faculty  in  universities.  He  suggested  educational  classroom                                                               
planning  to expand  the  idea  among 1st  and  2nd graders  that                                                               
healthcare career  opportunities are  not limited to  doctors and                                                               
nurses.                                                                                                                         
                                                                                                                                
     Pathways                                                                                                                   
     Develop  healthcare  career pathways  and  professional                                                                    
     development  opportunities  to   provide  training  and                                                                    
     advance  skills  that  will improve  patient  care  and                                                                    
     employee retention.                                                                                                        
                                                                                                                                
MR.  KOSIN   recommended  skilled  professionals  train   up  new                                                               
recruits and  inexperienced staff in an  apprenticeship model for                                                               
professional and specialty training.                                                                                            
                                                                                                                                
     Protection                                                                                                                 
     Develop   and   implement   strategies   that   support                                                                    
     wellness,  increase  resiliency, and  address  burnout,                                                                    
     violence,  and  other   threats  to  retention.  Remove                                                                    
     barriers that overburden the industry and workers.                                                                         
                                                                                                                                
MR. KOSIN  said protecting the  current workforce is  perhaps the                                                               
most  essential factor.  Prioritizing their  wellness, preventing                                                               
burnout, and keeping the workforce resilient.                                                                                   
                                                                                                                                
2:01:23 PM                                                                                                                    
SENATOR DUNBAR  commented that Senator Bjorkman  pointed out that                                                               
K-12 education  is flat-funded;  as a  result, the  state reduced                                                               
the  number  of  programs  offered to  students.  Some  of  those                                                               
programs were vocational and job  readiness, which feeds into Mr.                                                               
Kosin's ideas. He  asked what AHHA's opinion is  of increasing K-                                                               
12 funding in Alaska.                                                                                                           
                                                                                                                                
MR. KOSIN replied that the  answer to that question would require                                                               
an  AHHA group  discussion.  He said  that  AHHA supports  robust                                                               
education and creating a workforce  in-house. It is a sustainable                                                               
way to offset Alaska's labor shortages.                                                                                         
                                                                                                                                
2:02:38 PM                                                                                                                    
SENATOR BISHOP  provided a  historical perspective  to underscore                                                               
the  need. During  his  tenure  as the  Department  of Labor  and                                                               
Workforce  Development  (DOLWD)  commissioner,  the  department's                                                               
2010 ten-year  forecast showed a  4,000-person gap. The  gap last                                                               
year was 6,500. One year  later, the healthcare labor shortage is                                                               
more than a 7,000-person gap.                                                                                                   
                                                                                                                                
2:03:13 PM                                                                                                                    
SENATOR BJORKMAN asked whether there  have ever been any programs                                                               
in  Alaska that  incorporated  vocational education  at the  high                                                               
school level for CNA or other healthcare worker training.                                                                       
                                                                                                                                
MR.  KOSIN replied  that to  do  this question  justice, he  will                                                               
collect the information  and get back to the committee.  A lot of                                                               
work  is   happening  on  this   subject.  Many   facilities  are                                                               
progressively  moving on  this, and  AHHA has  invested a  lot of                                                               
energy in this subject.                                                                                                         
                                                                                                                                
2:03:57 PM                                                                                                                    
MR. KOSIN  advanced to  slide 10 to  discuss the  nurse licensure                                                               
compact.   He  said   legislators  always   ask  AHHA   what  the                                                               
legislature  can do  to help  the problem  now. He  emphasized if                                                               
legislators  want to  do something  now, it  is reciprocity.  One                                                               
deterrent for working  in Alaska is that getting  a nurse license                                                               
in Alaska  takes three  months. He  shared the  story of  a young                                                               
person  who  wanted to  accept  a  neonatal intensive  care  unit                                                               
(NICU) nursing position in Alaska. She  had the job, the car, and                                                               
the place  to stay but  did not want to  wait three months  for a                                                               
license. He said that no one  could wait three months. She turned                                                               
down the assignment.  NICU nurses are in  incredibly high demand,                                                               
especially in  the Anchorage area.  This is  a case in  point. It                                                               
takes three  months to get  licensed, and  it is a  deterrent. He                                                               
said the  state needs  to get  people here  faster to  reduce the                                                               
vacancy rate.  Reducing the vacancy rate  will increase capacity.                                                               
Increase  capacity,  and  the  system  will  start  to  flow.  He                                                               
reviewed slide  10 to  explain that  39 states  and jurisdictions                                                               
have  passed  reciprocity  acts   to  alleviate  their  licensing                                                               
logjams:                                                                                                                        
                                                                                                                                
     Nurse Licensure Compact                                                                                                    
                                                                                                                                
     How it works                                                                                                               
                                                                                                                                
     • 39 states and jurisdictions                                                                                              
                                                                                                                                
     • Reciprocity ? Single RN license across state lines                                                                       
                                                                                                                                
2:06:15 PM                                                                                                                    
MR.  KOSIN said  states that  enact the  nurse licensure  compact                                                               
recognize a  single license between  all the compact  states. Any                                                               
nurse  from a  compact state  can  get one  license and  practice                                                               
across state lines.                                                                                                             
                                                                                                                                
     • Uniform standards, including background checks                                                                           
                                                                                                                                
MR.  KOSIN  said the  compact  changes  the  standards to  get  a                                                               
license.  They  have  uniform  standards   to  be  processed  and                                                               
approved for  a license,  but the  practice of  being a  nurse is                                                               
left up to individual states.                                                                                                   
                                                                                                                                
     • Local jurisdiction for oversight / enforcement                                                                           
                                                                                                                                
MR.  KOSIN  said  the  enforcement  of rules  and  the  scope  of                                                               
practice  remains   with  the  individual  state.   However,  the                                                               
standards for licensing and allowing  someone to practice becomes                                                               
uniform  and  reciprocal.  The  compact  would  knock  a  3-month                                                               
processing time  down to  a week or  two, including  a background                                                               
check. The compact licensing standards  and background checks are                                                               
more stringent than Alaska requires, making them safer.                                                                         
                                                                                                                                
     The Coalition                                                                                                              
                                                                                                                                
      • 75+ orgs (every facet of healthcare) say this will                                                                      
        help!                                                                                                                   
                                                                                                                                
        o Medical,    tribal,    nursing   schools,    aging                                                                    
          population,   behavioral   health,   chambers   of                                                                    
          commerce, local governments, public health,                                                                           
          military, post acute providers . . .                                                                                  
                                                                                                                                
MR.  KOSIN expressed  his  belief  that if  the  state joins  the                                                               
compact, it will get nurses  into positions faster, especially in                                                               
rural communities.  It will  draw down  on vacancies,  which will                                                               
help. It is  not a cure-all but an excellent  tool that will make                                                               
a  big   difference.  Over  75   organizations  would   tell  the                                                               
legislature  this  would  help. The  organizations  listed  above                                                               
agree; it has widespread buy-in.  He said this discussion offered                                                               
doom and  gloom and dire  statistics, but there is  something the                                                               
legislature  can  do  to  make  a  difference.  Adopt  the  nurse                                                               
licensure compact.                                                                                                              
                                                                                                                                
2:08:17 PM                                                                                                                    
SENATOR MERRICK  asked whether nurses  would be more  inclined to                                                               
leave  Alaska  for  part  of the  year,  especially  during  less                                                               
desirable seasons, if the nurse licensure compact were enacted.                                                                 
                                                                                                                                
MR. KOSIN prefaced  his answer, stating the other  39 states that                                                               
joined must not be as concerned.  He added that a lot of movement                                                               
already occurs amongst traveling  nurses. He expressed his belief                                                               
that joining the compact would  not create mass out-migration. He                                                               
suggested putting  it in place with  a sunset after two  years to                                                               
see if it worked. He proposed  repealing it after a year if there                                                               
is  out-migration.  AHHA  does  not  think  out-migration  is  an                                                               
overarching concern,  but should it  become a reality,  the state                                                               
could exit anytime.                                                                                                             
                                                                                                                                
2:09:48 PM                                                                                                                    
SENATOR DUNBAR  commented that this  is an interesting  topic. He                                                               
assumes there  will be a  bill, and  should one come  forward, he                                                               
would  like a  much longer  conversation about  this subject.  He                                                               
will hold  his questions to that  time as other items  are on the                                                               
agenda today.                                                                                                                   
                                                                                                                                
MR.  KOSIN  responded  that  AHHA  hopes there  is  a  bill.  The                                                               
association is available  to offer ideas and  policy. He receives                                                               
many  calls about  workforce,  licensing,  and background  checks                                                               
from AHHA  members. The association would  like to see a  bill on                                                               
this.                                                                                                                           
                                                                                                                                
2:10:34 PM                                                                                                                    
SENATOR BJORKMAN asked what other  ideas the Board of Nursing has                                                               
to speed up  licensing in the state if the  compact fails to move                                                               
forward.                                                                                                                        
                                                                                                                                
MR.  KOSIN  replied  AHHA  spent  over a  year  asking  the  same                                                               
question,  consulting  nurses, the  board,  and  the state.  They                                                               
answered  nothing that  would  speed up  licensure,  be as  cost-                                                               
effective, or be  implemented as fast. He said that  AHHA had yet                                                               
to find an  alternative idea that could perform  in equal measure                                                               
to the compact. AHHA has settled on the compact.                                                                                
                                                                                                                                
2:12:03 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
^PRESENTATION: SOUTH CENTRAL FOUNDATION WORKFORCE OVERVIEW                                                                      
          SOUTH CENTRAL FOUNDATION WORKFORCE OVERVIEW                                                                       
                                                                                                                                
2:17:33 PM                                                                                                                    
CHAIR  BJORKMAN reconvened  the meeting  and announced  the South                                                               
Central Foundation  workforce overview. He asked  Ms. McIntire to                                                               
state her name and affiliation for the record.                                                                                  
                                                                                                                                
2:17:36 PM                                                                                                                    
KAREN  MCINTIRE,   Vice  President  of   Workforce,  Southcentral                                                               
Foundation, Anchorage, Alaska, introduced herself.                                                                              
                                                                                                                                
2:17:45 PM                                                                                                                    
CHAIR  BJORKMAN provided  a brief  overview  of the  Southcentral                                                               
Foundation  (SCF). He  said SCF's  vision is  a native  community                                                               
that enjoys physical, mental,  emotional, and spiritual wellness.                                                               
Its  mission is  to work  together with  the Native  community to                                                               
achieve  wellness through  health and  related services.  SFC was                                                               
administering nearly  half the primary  care services  for Alaska                                                               
Native  people by  1994.  The Alaska  Medical  Center opened  its                                                               
doors in  May of  1997. Public Law  105-83 enabled  Alaska Native                                                               
people to  obtain ownership and  management of all  Alaska Native                                                               
healthcare services.  SCF completed  the assumption  of ownership                                                               
and management of primary care  and other programs located in the                                                               
Anchorage  Native Primary  Care  Center in  1997. SFC  instituted                                                               
significant  philosophical  changes  and  other  changes  in  the                                                               
design and  administration of these programs  from the beginning.                                                               
He  invited Ms.  McIntire  to begin  the Southcentral  Foundation                                                               
presentation.                                                                                                                   
                                                                                                                                
2:20:19 PM                                                                                                                    
MS. MCINTIRE  said Southcentral Foundation  is a  tribally owned,                                                               
Native  nonprofit located  primarily in  the Anchorage  area. She                                                               
gave a brief  overview of her work experience and  of SCF. She is                                                               
a  customer-owner of  the system;  she comes  from the  community                                                               
that  helps  manage and  own  healthcare  services. SCF  provides                                                               
services  to over  65,000 Alaskan  Native American  Indian people                                                               
and works  with over  55 villages  and community  health centers.                                                               
They co-manage the  Alaska Native Medical Center  (ANMC) with the                                                               
Alaska Native Tribal Health Consortium  (ANTHC) in Anchorage. SCF                                                               
is  one of  Alaska's top  ten largest  private sector  employers,                                                               
with  2,700 employees.  She said  everybody is  having challenges                                                               
with  workforce shortages  in Alaska.  Recruiting  is an  ongoing                                                               
issue. It is not for lack  of trying or partnering with community                                                               
hospitals.                                                                                                                      
                                                                                                                                
MS. MCINTIRE read slide 2:                                                                                                      
                                                                                                                                
                             Vision                                                                                             
        A Native Community that enjoys physical, mental,                                                                        
     emotional and spiritual wellness                                                                                           
                                                                                                                                
                            Mission                                                                                             
     Working together with the Native Community to achieve                                                                      
     wellness through health and related services                                                                               
                                                                                                                                
MS. MCINTIRE reviewed slide 3, Learning Objectives:                                                                             
                                                                                                                                
        Share how SCF faces challenges of recruiting and                                                                        
     retaining health care professionals.                                                                                       
                                                                                                                                
      Share opportunities that the State can implement to                                                                       
     positively impact health care workforce.                                                                                   
                                                                                                                                
       Share and answer questions regarding Tribal Health                                                                       
     workforce from SCF perspective.                                                                                            
                                                                                                                                
2:23:19 PM                                                                                                                    
MS. MCINTIRE reviewed  slide 4, SCF Workforce  Snapshot. She said                                                               
SCF is  one of  the top  ten employers in  the state,  with 2,700                                                               
employees. They currently have 510  vacancies. Some vacancies are                                                               
due to  turnover, and  some are due  to growth.  Many individuals                                                               
decided  they did  not want  to work  in healthcare  after COVID;                                                               
they  wanted  to   be  closer  to  family,   leave  Alaska,  etc.                                                               
Historically, SCF had  a great retention rate; they  had a better                                                               
retention rate than local  healthcare organizations. However, the                                                               
turnover  is  20  percent  now.   She  said  this  is  her  first                                                               
experience  with  a high  turnover  rate,  stating employees  are                                                               
excited to  work with SCF  because of the foundation's  work with                                                               
the community  to achieve wellness.  SCF had 500 vacancies  as of                                                               
January 17, and the vacancies are affecting service.                                                                            
                                                                                                                                
2:24:39 PM                                                                                                                    
SENATOR DUNBAR drew attention to  the number of employees working                                                               
at SCF, which  is 2,700. He asked whether the  2,700 includes the                                                               
employees at ANMC.                                                                                                              
                                                                                                                                
MS. MCINTIRE  answered that  2,700 does  not include  ANMC staff;                                                               
the  number specific  to  SCF totals  close  to 6,000,  including                                                               
ANTHC employees.                                                                                                                
                                                                                                                                
MS.  MCINTIRE  summarized slides  5  and  6, Recruit  and  Retain                                                               
Licensing Professionals.  SCF regularly collaborates  with ANTHC,                                                               
Providence,  Alaska Regional  Hospital, and  AHHA to  think about                                                               
ways  to  improve  retention  rates  and  recruitment.  The  most                                                               
challenging  position to  fill is  nurse,  and it  is an  ongoing                                                               
issue. SCF's nursing  workforce is maturing and  retiring. SCF is                                                               
not  meeting  the  demand  for  good quality  care  at  ANMC  and                                                               
community health centers. SCF's  other most significant needs are                                                               
behavioral   health,   master-level    therapists,   and   dental                                                               
hygienists.  She  thanked the  legislature  for  passing HB  265,                                                               
telehealth  pharmacy,  last  year.   It  was  beneficial  to  the                                                               
community that provides services to 55 villages.                                                                                
                                                                                                                                
2:26:43 PM                                                                                                                    
MS. MCINTIRE  said SCF coordinates with  organizations within the                                                               
community  to  figure out  how  to  attract and  train  qualified                                                               
people  to  provide good  quality  care.  Alaska  is a  state  of                                                               
collaboration,  so   even  though  organizations   offer  similar                                                               
services, they  work together to  meet the community's  needs. It                                                               
is increasingly  difficult to recruit  specialists to  the state;                                                               
as  a  result,  providers  often   work  with  all  hospitals  in                                                               
Anchorage to meet customer's needs.                                                                                             
                                                                                                                                
MS.  MCINTIRE said  a concern  is  the licensing  backlog at  the                                                               
Division of Licensing. The backlogs  continue to increase. It can                                                               
take  anywhere from  three to  nine months  to get  an individual                                                               
licensed.  Often  it takes  longer  for  dentists. She  suggested                                                               
looking at  alternative options to  speed up  licensing. Consider                                                               
expedited   background  checks   and  licensing   for  healthcare                                                               
professionals  from the  Lower 48.   Mounting  backlogs mean  SCF                                                               
customers  wait increasingly  longer  to  receive primary  health                                                               
care and dental services.                                                                                                       
                                                                                                                                
2:29:04 PM                                                                                                                    
MS.  MCINTIRE  summarized  slide  7,  which  pictured  these  SCF                                                               
community  health centers:  Benteh Nuutah  Valley Native  Primary                                                               
Care  Center,  Anchorage  Native Primary  Care  Center,  Nilavena                                                               
Subregional Clinic  Iliamna, McGrath Health Center,  and St. Paul                                                               
Health Center.                                                                                                                  
                                                                                                                                
MS. MCINTIRE  advanced to  slide 8  to discuss  opportunities for                                                               
the  legislature to  help  the industry  with  rural housing  for                                                               
healthcare   professionals.   She   thanked  the   governor   for                                                               
introducing  the   Alaska  Housing  Finance   Rural  Professional                                                               
Housing  Program  and  the legislature  for  supporting  it.  SCF                                                               
supports  community  health  centers   and  locations  that  need                                                               
housing. She offered  personal testimony about the  need for more                                                               
rural housing. After graduating from  college, she wanted to work                                                               
in St. Paul;  her dad was from  there. She was offered  a job but                                                               
could  not accept  it due  to housing  unavailability. The  slide                                                               
pictured the  St. Paul Health  Center and  surrounding community.                                                               
Housing is needed to attract  and retain healthcare professionals                                                               
in rural SCF-served communities; it is an ongoing challenge.                                                                    
                                                                                                                                
MS.  MCINTIRE  advanced  to   slide  9,  Reducing  Administrative                                                               
Burden. Healthcare  is complicated. It  is technical, with  a lot                                                               
of  hoops.  Organizations  must  jump  through  paperwork  hoops,                                                               
background checks, billing, and  licensing forms. It is important                                                               
to remember  that new  requirements often  affect access  to care                                                               
and the  ability to provide care.  People want to return  home to                                                               
work in  their community, but  often, it  is easier to  avoid the                                                               
hoops,  like the  licensing  hoops. The  workload  is an  ongoing                                                               
issue for  the state background  check unit. Workers do  not have                                                               
enough  hours in  the day  to  process the  amount of  background                                                               
check requests.                                                                                                                 
                                                                                                                                
2:31:53 PM                                                                                                                    
MS.  MCINTIRE advanced  to slide  10  to talk  about creating  an                                                               
apprenticeship pipeline. She said it  is vital to build pipelines                                                               
in  the   workplace.  SCF's  Raise  Program   gets  young  people                                                               
interested in healthcare  work. The program starts at  age 14 and                                                               
goes to age 18. 744 youth  have participated in the program; some                                                               
have  become  SCF  nurses  and   healthcare  support  staff.  She                                                               
revealed that  she began  her career  with SCF  as administrative                                                               
support and  is now  the vice president  of Workforce.  The Raise                                                               
Program provides opportunities for SCF to grow its own staff.                                                                   
                                                                                                                                
2:32:57 PM                                                                                                                    
She detailed  SFC's entry points, apprenticeships,  and vacancies                                                               
on slide 10:                                                                                                                    
                                                                                                                                
                Creating Apprenticeship Pipeline                                                                                
                                                                                                                                
     Entry Point                                                                                                                
                                                                                                                                
     • Raise                                                                                                                    
     • Administrative Support Training Program                                                                                  
     • Dental Assistant Training Program                                                                                        
     • Clinical Degree Program Initiatives                                                                                      
                                                                                                                                
MS. MCINTIRE said the SCF  Board of Directors support Alaska                                                                    
Natives and  American Natives  in clinical  training, paying                                                                    
their way  through school  to graduation.  There is  so much                                                                    
need SCF cannot afford not to pay.                                                                                              
                                                                                                                                
     Apprenticeships                                                                                                            
                                                                                                                                
     • Universities                                                                                                             
     • Trade Schools                                                                                                            
     • Community Partnerships                                                                                                   
     • State Programs                                                                                                           
     • Training Programs                                                                                                        
     • Internships                                                                                                              
                                                                                                                                
     Vacancies                                                                                                                  
                                                                                                                                
     Tribal Doctor                                                                                                              
     Community Health Aide                                                                                                      
     Dental Health Aide                                                                                                         
     Behavioral Health Aide                                                                                                     
     Certified Medical Assistant                                                                                                
     Chemical Dependency Counselor                                                                                              
     Manager or Supervisor                                                                                                      
                                                                                                                                
MS. MCINTIRE said  SCF has a training program  for all these                                                                    
vacancies.  SCF has  career pathways  to learn  and try  new                                                                    
things, gain  competency, and go  to school; SFC  helps fund                                                                    
these individuals to help meet the community's needs.                                                                           
                                                                                                                                
2:36:33 PM                                                                                                                    
SENATOR  DUNBAR asked  whether low-level  barrier crimes  prevent                                                               
individuals   from   working    in   the   healthcare   industry,                                                               
particularly  within the  health aide  and dental  aide path.  He                                                               
offered the example  of a low-level drug  conviction committed by                                                               
a teen.                                                                                                                         
                                                                                                                                
MS.  MCINTIRE  answered  yes,  that  is  an  ongoing  issue.  She                                                               
expressed her  belief that SCF  has the opportunity to  apply for                                                               
variances with the  state background check unit,  but the process                                                               
is lengthy and  has a long application. Youth who  had trouble at                                                               
18 and want  to get into healthcare can apply  for variances, and                                                               
SCF can support their variance  application. However, the process                                                               
can  take three  months, and  often applicants  cannot wait  that                                                               
long for  a job.  Additionally, the  Indian Child  Protection Act                                                               
prevents variances  when working with Indian  children. Often SCF                                                               
would like  to hire  people with  life skills  but cannot  due to                                                               
those burdens or things that happened twenty years ago.                                                                         
                                                                                                                                
SENATOR DUNBAR sought confirmation  that the Child Protection Act                                                               
is a  federal law,  commenting that  the state  legislature would                                                               
not have  jurisdiction. He  asked whether that  is the  case with                                                               
most barrier  crimes or if  there are opportunities  for changing                                                               
the variance  process or  the underlying law,  such as  crimes of                                                               
moral turpitude, at the state level.                                                                                            
                                                                                                                                
MS. MCINTIRE confirmed that the  Indian Child Protection Act is a                                                               
federal law.  She answered the  second question, stating  that an                                                               
applicant who  gave up a  child through the Office  of Children's                                                               
Services  (OCS)  is  another barrier  to  employment.  The  state                                                               
prevents an applicant who gave up  a child to OCS from working in                                                               
healthcare;  this   includes  individuals   who  may   have  done                                                               
something when they were young and OCS was involved.                                                                            
                                                                                                                                
2:39:34 PM                                                                                                                    
SENATOR BJORKMAN asked whether SCF  was involved in the childcare                                                               
industry.                                                                                                                       
                                                                                                                                
MS. MCINTIRE answered SCF is  not involved in childcare; however,                                                               
it does have a residential treatment center for youth.                                                                          
                                                                                                                                
2:40:27 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Bjorkman  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:40 p.m.                                                                                                  

Document Name Date/Time Subjects
01.25.23 AK Hospital and Healthcare Assoc Presentation.pdf SL&C 1/25/2023 1:30:00 PM
AHHA Presentation to SL&C
01.25.23 SCF Workforce Overview Presentation.pdf SL&C 1/25/2023 1:30:00 PM
SCF Presentation to SL&C