HOUSE COMMITTEE ON HEALTH AND HUMAN SERVICES

 

March 5, 2003 Hearing Room D

8:30 A.M.  Tapes 42 - 44

 

MEMBERS PRESENT:            Rep. Jeff Kruse, Chair

Rep. Billy Dalto, Vice-Chair

Rep. Carolyn Tomei, Vice-Chair

Rep. Gordon Anderson

Rep. Jeff Barker

Rep. Laurie Monnes Anderson

Rep. Ben Westlund

 

STAFF PRESENT:                  Sandy Thiele-Cirka, Committee Administrator

Mara McGraw, Committee Assistant

 

ISSUES HEARD:                     Informational Meeting

·         Clyde Saiki, Administrative Services Assistant Director, Chief Administrative Officer, Administrative Services Department of Human Services (DHS)

·         John Cuddy, Chief Information Officer, Information Services, DHS

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 42, A

004

Chair Kruse

Calls meeting to order at 8:45 A.M. and opens informational meeting.

INFORMATIONAL MEETING

008

Clyde  Saiki

Chief Administrative Officer, DHS.  Submits overview of Administrative Services (EXHIBIT A) and department matrix (EXHIBIT B). Discusses the consolidation of departments under DHS via Administrative Services. States reasons for consolidation and details mission and goals.

113

Chair Kruse

Requests example of interdepartmental conflicting policies.

123

Saiki

Provides example of contract and purchase orders approval. Speaks to standardization of approval paths. 

138

Chair Kruse

Inquires on administrative policies versus program policies.

139

Saiki

Clarifies presentation speaks to administration issues. Reports budget figures for 2001-03. Offers brief overview of each office under Administrative Services (EXHIBIT A-page 2).

180

Rep. Dalto

Inquires on loss prevention. 

188

Saiki

Details Financial Services department.

202

Chair Kruse

Inquires on reports filed each quarter. Requests information on number of reports filed with each department. 

215

Saiki

Offers to provide information.

218

Rep. Westlund

States daily figure for reports.

221

Saiki

Notes some reporting is passed down to contractors. Continues presentation.

249

Rep. Westlund

Requests tracking on medical payment recovery/third party payer for last biennium. Inquires on actual versus projected recovery. Questions appropriation for medical payment recovery department.

264

Chair Kruse

Requests institutional revenue.

267

Rep. Tomei

Requests detailed information on recovery.

271

Saiki

Explains financial recovery process. 

297

Rep. Tomei

Inquires on monies collected.

299

Saiki

Concurs.

301

Chair Kruse

Inquires on Oregon Medical Assistance Programs (OMAP) role in medical payment recovery.

308

Saiki

Concurs collection has moved into Administrative Services.

312

Rep. Anderson

Inquires on overpayments.

318

Saiki

Explains how overpayments occur. 

348

Rep. Westlund

Emphasizes importance of financial recovery. 

369

Chair Kruse

Notes collection on the front end versus financial recovery.

377

Saiki

States primary challenge in Financial Services is reduction in staff.  Details Contracts and Procurements (EXHIBIT A-page 6). Explains standardization of services. Offers example of centralizing management of copiers, FAX machines and mail services.

TAPE 43, A

017

Chair Kruse

Inquires on savings efforts from paperless information.

022

Saiki

Discusses management of website. 

038

Rep. Tomei

Points out volume of contracts.

039

Chair Kruse

Inquires if those are provider contracts.

042

Saiki

Explains contracts include all services. Points out that the data includes contracts and amendments. Speaks to increase in unit workload.

062

Chair Kruse

Draws connections to Department of Administrative Services (DAS). 

070

Saiki

Concurs and adds the Department of Justice is a partner.  Details Communication Office (EXHBIT A-page 8). Notes achievement of efficiencies in communication. Discusses cost savings via DHS website. Discusses consolidation of Facilities Office (EXHIBIT A-page 10).      

146

Chair Kruse

Questions department vehicles and motor pool.

148

Saiki

Responds vehicles are permanently assigned and are included in the motor pool. 

150

Chair Kruse

Inquires on management of facilities.

160

Saiki

Explains facilities plan regarding housing staff and programs. Refers to assessment of consolidation process over past year.

180

Chair Kruse

Refers to one-stop concept.

184

Saiki

Explains co-location is not service integration. 

195

Rep. Anderson

Comments on use of existing buildings.

199

Saiki

Refers to Governor’s plan on sustainability and use of existing structures.

217

Rep. Dalto

Inquires on cost for retrofitting versus new facilities.

227

Saiki

Explains cost depends on age of building and required building codes.  Supports sustainability strategy for long term success.

241

Rep. Anderson

Inquires on managing services from different locations.

245

Saiki

Comments on use of electronic communication. Details consolidation of Forms and Document Management Office (EXHIBIT A-page12). Offers example of Oregon Health Plan (OHP) application process.

303

Chair Kruse

Refers to networking process to improve the application process.

309

Saiki

Continues presentation of Forms and Document Management Office.  Discusses consolidation of Human Resources/Personnel Office (EXHIBIT A-page 14). Speaks to streamlining Service Employees International Union (SEIU) contract. Addresses uniformity of personnel policies and procedures. 

358

Chair Kruse

Inquires on criminal background checks for employees.

370

Saiki

Explains background checks include staff, providers, volunteers, client employed providers.

402

Rep. Monnes Anderson

Inquires on actual budget with breakdown for each department.

411

Saiki

Offers to provide information with caveat that consolidation is still being implemented.

429

Rep. Westlund

Explains budget silos and clusters.

TAPE 42, B

027

Saiki

Notes the complexity of budget issues. Continues presentation on Human Resources Office. Addresses Health Insurance Portability and Accountability Act (HIPAA) (EXHIBIT A-page 17 and 18). Addresses privacy issues.

059

Chair Kruse

Inquires on coordination with doctors and hospitals.

061

Saiki

Explains coordination process with providers and government.

070

Rep. Westlund

Inquires on cost in staffing for accountability.

073

Saiki

Explains intricacies and impact of HIPAA policies.

084

Rep. Westlund

Requests data on administrative costs.

087

Saiki

Offers to present that information at a later time. Refers to HIPAA as an unfunded federal mandate. Reports project is on target with timeline.  Addresses HIPAA security rule. 

110

Chair Kruse

States DHS is already headed in direction of HIPAA.

115

Rep. Tomei

Notes cost of administrative staffing to implement HIPAA.

122

Saiki

Address funding of remaining work on HIPAA. Details the funding match ratios.

127

Chair Kruse

Inquires on size of fund.

133

Saiki

Reports match is uncapped. Details information security related to HIPAA. 

166

Rep. Dalto

Inquires on full time equivalency (FTE) in HIPAA project management.

171

Saiki

Reports one FTE devoted to project.

173

Rep. Dalto

Comments on limited staff and project support.

180

Saiki

Explains responsibilities of one FTE staff in coordinating planning effort. 

209

Rep. Dalto

Inquires on embezzlement case.

240

Saiki

Reports discovery was accidental. Comments on management control issue.

249

Rep. Dalto

Requests more information on case.

250

Saiki

Provides additional information.

267

Rep. Westlund

Comments on administrative lapses as they relates to legislative mandates.

289

Rep. Dalto

Comments on undiscovered fraud.

329

Saiki

Notes the importance of implementing an action plan to prevent future occurrences.

345

Rep. Tomei

Comments on staff reductions during the reorganization process.

365

Saiki

Speaks to skills of staff and management in regard to efficiency and cost effectiveness.

380

Rep. Anderson

Inquires on percentage of collection recovery.

389

Saiki

Offers to provide information at a later date.

393

Rep. Dalto

Inquires on staff reductions and impact on department.

401

Saiki

Explains reorganization process in regard to staff reductions. 

419

Rep. Westlund

Reports information exists in Legislative Fiscal Office (LFO).

422

Rep. Monnes Anderson

Comments on accountability.

TAPE 43, B

002

John Cuddy

Chief Information Officer, DHS. Submits overview of Information Services (IS) (EXHIBIT C). Clarifies HIPAA funding. 

022

Chair Kruse

Inquires on portion of HIPAA tied to Medicaid.

023

Cuddy

Explains attempt to tie large portion to Medicaid.

037

Rep. Monnes Anderson

Inquires on capital for changes to structural changes in safety-net clinics. 

043

Cuddy

Explains applicable uses of funds. Clarifies issues relating to cost savings in electronic communication. Details reporting via main frame. 

072

Chair Kruse

Inquires on number of IS main frames.

076

Cuddy

Explains DHS main frames and technology systems. Details services and supports provided by information and technology department. Provides examples

175

Cuddy

Continues presentation on IS. Discusses major activities and consolidation process. Addresses information sharing technologies. Presents data on IS (EXHIBIT C-page 2).

270

Cuddy

Continues presentation on IS. Describes server networks.   

342

Chair Kruse

Clarifies “program” as a set of codes that perform a function.

345

Cuddy

Concurs. Details major activities of IS Office (EXHIBIT C-page 2). 

373

Chair Kruse

Inquires on age of hardware for main frame

374

Cuddy

Reports two years. Details main frame technology and expense of replacement. Describes wide area and local networks. Notes development of project culture within IS. Explains organization and levels of staffing. 

TAPE 44, A

030

Cuddy

Continues presentation. Addresses IS funding and staff resources (EXHIBIT C-page 3). Details major initiatives (EXHIBIT C-page 4).  Notes Oregon DHS-IS is operating model for other states. Comments on IS support to Staley settlement. Details IS efforts in Women Infant and Children (WIC) nutrition plan.  

127

Rep. Monnes Anderson

Inquires on immunization data base in relation to WIC.

129

Cuddy

Discusses conceptual model existing in public health and compatibility of other immunization data bases.

145

Rep. Monnes Anderson

Comments on duplication of data entry.

150

Cuddy

Notes complexity of cost allocation for project implementation.

163

Chair Kruse

Inquires on HIPAA regulation in regard to integrating immunizations and WIC.

167

Cuddy

Unable to answer question. Closes presentation.    

188

Chair Kruse

Notes possible unintended consequences of mergers. Closes informational meeting and adjourns meeting at 10:45 A.M.

 

EXHIBIT SUMMARY

 

A – Informational, DHS overview, Clyde Saiki, 19 pp.

B – Informational, chart, Clyde Saiki 1 p.

C – Informational, information services overview, John Cuddy, 7 pp.