MEDICARE DEMONSTRATION OF COMPETITIVE BIDDING FOR CLINICAL LABORATORYSERVICES - WHAT IT MEANS FOR CLINICAL LABORATORIES

The purpose of Medicare's Demonstration of Competitive Bidding for Cli nical Laboratory Services is to determine whether competitive bidding can be used to provide quality laboratory services at prices below cur rent Medicare reimbursement rates. Here, we present key features of th e preliminary design for the demonstration. The following areas are co vered: scope of the demonstration, bidding process, selection of winne rs, reimbursement, quality, and administration and monitoring. The rol e of the Health Care Financing Administration's Laboratory Technical A dvisory Committee is also described, and the future of competitive bid ding in a Medicare managed care environment is evaluated. We close wit h some brief comments on how to succeed in competitive bidding for Med icare services.