The Arizona experiment: Competitive bidding for indigent medical care

The ultimate impact of competitive bidding processes on the quantity, quality, and cost of medical care received by indigents through state-administered programs will require careful evaluation over a period of time. But, given the rapid growth in Medicaid budgets and the extreme financial problems which have confronted states during the recent recession, it seems unlikely that other states will delay the adoption of similar measures in anticipation that conclusive findings will emerge from future evaluations. Indeed, it already has been suggested that states use competitive bidding to develop long-term care contracts under Medicaid. Therefore, it is timely to review the initial experience of Arizona in implementing its competitive bidding system, so that policymakers and providers in other states can learn from this process.