Congress now requires all bidders to submit a $50,000 “bid surety bond” – which the winning bidder must forfeit if the vendor decides to not participate. (Photo: Shutterstock)

Medicare’s current inefficient competitive bidding process for medical equipment and supplies is causing less vendors to submit bids – to the detriment of patients, according to Pacific Research Institute’s report, “Reforming CMS’ Competitive Bidding Process to Improve Quality and Sustainability.”

In contrast to most bidding processes that award contracts to the lowest bidders, the Centers for Medicare and Medicaid Services uses the median of the winning bids as the compensation price, “which only creates uncertainty and potential losses for bidders,” according to Dr. Wayne Winegarden, the report’s author.

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Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

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