This committee hearing was held to consider factors in federal suport of health care services, including the roles of professional organizations, insurance companies, and hospitals. The process of evaluating whether the use of medical technology, diagnostic tests, and therapeutic procedures are cost-effective and beneficial is identified as "technology assessment." Included in the considerations were general cost containment strategies and cost implications of defensive medicine and medical malpractice. Statements from 14 witnesses were recorded. Responses to questions posed by members of the committee are included. (JD)