San Diego Labs Sue To Stop Competitive Bidding Project Under Medicare
On Tuesday, three clinical laboratories in San Diego County filed a lawsuit against CMS to block an experimental competitive bidding program from taking effect next month, the San Diego Union-Tribune reports.
The three-year experiment aims to lower Medicare costs by requiring laboratories in San Diego to participate in a competitive bidding process for 303 commonly ordered lab tests.
CMS selected the San Diego region for the project under a congressional mandate enacted in 2003. Under the mandate, labs must submit bids for all 303 tests by Feb. 15.
Details of Lawsuit
The lawsuit asks a San Diego federal judge to stop the project before the deadline. Attorney Patric Hooper filed the suit on behalf of:
- Sharp Healthcare;
- Scripps Health; and
- The Internist Laboratory of Oceanside.
Hooper said the program "will force many small community laboratories out of business" and also will force some labs "to refuse service to non-hospital patients who have come to rely on their labs for ongoing testing."
A spokesperson for CMS declined to comment on the lawsuit (Bigelow, San Diego Union-Tribune, 1/30). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.