Amends title XVIII (Medicare) of the Social Security Act to require the Secretary of Health and Human Services to establish a program…

Official title: A bill to amend title XVIII of the Social Security Act to provide for research with respect to the outcomes of specific medical treatments and surgical procedures.

Amends title XVIII (Medicare) of the Social Security Act to require the Secretary of Health and Human Services to establish a program providing for research regarding outcomes of selected medical treatments and surgical procedures so as to assess their appropriateness, necessity, and effectiveness. Places a priority on the selection of procedures and treatments with significant costs, risks, hospitalization periods, and utilization patterns. Authorizes appropriations from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund for FY 1987 through 1989 to carry out such research. Requires that at least 90 percent of the funds available in any fiscal year be used to fund grants to, and cooperative agreements with, non-Federal research entities. Directs that the program be administered by the National Center for Health Services Research and Health Care Technology (Center). Requires the Center to: (1) report its findings to the Congress within 18 months of enactment of this Act and annually thereafter; and (2) disseminate its findings as widely as possible.