HHESS - 02/07/95 Number 676 HB 23: REFERRALS INVOLVING DENTAL SERVICES REPRESENTATIVE DAVIS, sponsor of HB 23, stated that this bill was a repeat of a bill that passed out of the HESS Committee and through the House last year. He read a sponsor statement into the record: HB 23 will prohibit the receipt of compensation by a dentist for referring a person to another dentist or dental practice. The American Dental Association Code of Ethics forbids dentists from profiting from referrals. This legislation codified the ethical concern relating to referrals. In Section 2, the receipt of compensation by a person or advertisement referring a dental service, is prohibited unless the compensation of referral is disclosed at the time of referral. This legislation will help ensure that patients are being referred to a dentist or dental practice as a result of their quality service. The Alaska Dental Society has had several breeches of their ethics code and their board has requested this legislation. I feel this is an appropriate legislative function of the Board of Dental Examiners under AS 08.36.315. Number 784 REPRESENTATIVE DAVIS said that the Alaska Board of Dental Examiners has a number of issues that relate to what the board shall act on. This bill simply adds another section under their jurisdiction. As indicated, this bill has been introduced by request of the Dental Society and is a result of breaches in their national code of ethics. Because of those breaches and technology that has been advanced over the last few years, it is quite timely to have this legislation added to the actions of the board. Number 849 DR. DAN PITTS, Dentist, testified via teleconference from Soldotna. He said that the Dental Society was receiving complaints from the public, and this legislation is a result of those complaints. The complaints were the result of members of the public calling dental referral services located in the yellow pages. Such a business will get a toll-free number or telephone number which is remoted to another town or city out of state. A large ad is placed in the telephone book which identifies the company as a dental referral service for Alaska. The referral service then solicits business to perhaps three dentists who want to advertise and receive referrals. The dentists are charged a fee, and if a patient calls the referral service and requests an orthodontist, that patient may simply be sent to a dentist and not an orthodontist. MR. PITTS said these referral services mislead people with their advertising. It appears they are a service which is run by organized dentistry when, in fact, the service is just a for-profit operation. Number 968 REPRESENTATIVE BRICE asked if the names of the dentists who violate the code of ethics are made public information. Dr. Pitts answered that the names are not publicized. CO-CHAIR BUNDE asked Dr. Pitts if he felt this legislation would be restrictive of advertisement and good business principles? DR. PITTS answered that the legislation ensures that the referral service must say, in their advertisements, that the dentists they refer pay for this service. If this information is disclosed, advertising is in no way limited. The disclosure of this information and advertising in general is fully ethical nationwide. Number 1075 CO-CHAIR BUNDE asked if the bill would preclude the current system, or referrals, or would it simply provide for a disclaimer that the referrals are a service purchased by the dentist. Dr. Pitts said that the latter was true. He continued that in dentistry, it is unethical to refer a patient to another dentist and then receive a kickback for that referral. This is called fee-splitting and is also illegal in dentistry statutes. HB 23 would not effect their system of referrals. Most dentists will refer patients to a specialist they feel is the best for the job. CO-CHAIR TOOHEY commented that no matter what the name, a kickback is still a kickback. Number 1166 REPRESENTATIVE BRICE moved that HB 23 be passed from committee with the accompanying fiscal notes and individual recommendations. There being no objection, CO-CHAIR BUNDE stated that the bill was passed.