Page:United States Statutes at Large Volume 117.djvu/2245

 117 STAT. 2226

PUBLIC LAW 108–173—DEC. 8, 2003 provide for appropriate servicing and replacement, as required under section 1834(a). ‘‘(5) PHYSICIAN AUTHORIZATION.— ‘‘(A) IN GENERAL.—With respect to items or services included within a particular HCPCS code, the Secretary may establish a process for certain items and services under which a physician may prescribe a particular brand or mode of delivery of an item or service within such code if the physician determines that use of the particular item or service would avoid an adverse medical outcome on the individual, as determined by the Secretary. ‘‘(B) NO EFFECT ON PAYMENT AMOUNT.—A prescription under subparagraph (A) shall not affect the amount of payment otherwise applicable for the item or service under the code involved. ‘‘(6) APPLICATION.—For each competitive acquisition area in which the program is implemented under this subsection with respect to items and services, the payment basis determined under the competition conducted under subsection (b) shall be substituted for the payment basis otherwise applied under section 1834(a), section 1834(h), or section 1842(s), as appropriate. ‘‘(b) PROGRAM REQUIREMENTS.— ‘‘(1) IN GENERAL.—The Secretary shall conduct a competition among entities supplying items and services described in subsection (a)(2) for each competitive acquisition area in which the program is implemented under subsection (a) with respect to such items and services. ‘‘(2) CONDITIONS FOR AWARDING CONTRACT.— ‘‘(A) IN GENERAL.—The Secretary may not award a contract to any entity under the competition conducted in an competitive acquisition area pursuant to paragraph (1) to furnish such items or services unless the Secretary finds all of the following: ‘‘(i) The entity meets applicable quality standards specified by the Secretary under section 1834(a)(20). ‘‘(ii) The entity meets applicable financial standards specified by the Secretary, taking into account the needs of small providers. ‘‘(iii) The total amounts to be paid to contractors in a competitive acquisition area are expected to be less than the total amounts that would otherwise be paid. ‘‘(iv) Access of individuals to a choice of multiple suppliers in the area is maintained. ‘‘(B) TIMELY IMPLEMENTATION OF PROGRAM.—Any delay in the implementation of quality standards under section 1834(a)(20) or delay in the receipt of advice from the program oversight committee established under subsection (c) shall not delay the implementation of the competitive acquisition program under this section. ‘‘(3) CONTENTS OF CONTRACT.— ‘‘(A) IN GENERAL.—A contract entered into with an entity under the competition conducted pursuant to paragraph (1) is subject to terms and conditions that the Secretary may specify.

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