Patient Outcomes Research Act of 1989

Patient Outcomes Research Act of 1989 - Amends title XVIII (Medicare) of the Social Security Act to direct the Secretary of Health and Human Services to establish a patient outcomes assessment research program to generate and disseminate information concerning the best methods of managing selected health conditions. Gives priority to significant health conditions that are subject to a variety of management methods among patients in different geographical locations and in different clinical settings.

Requires the Secretary to establish a program for the development of practice guidelines to assist health care professionals in adopting those practice patterns determined to be most effective in combating selected health conditions.

Authorizes appropriations for the research program and the guidelines program for FY 1990 through 1992. Requires that at least 70 percent of amounts appropriated for a fiscal year be used to fund grants to, and agreements with, non-Federal entities. Sets forth reporting requirements.

Directs the Secretary to establish the Independent Advisory Committee on Managing Patient Outcomes to advise and assist the Assistant Secretary in carrying out this Act's provisions. Requires the Assistant Secretary to contract with the Institute of Medicine for an annual review of the findings and recommendations of the research program. Includes, as part of such review: (1) the recommendation of strategic priorities for the research program and practice guidelines; (2) the evaluation of the success of the research program; and (3) the issuance of annual reports summarizing research findings and suggesting improvements to the research program and guidelines program. Authorizes appropriations for the Institute's review activities for FY 1990 through 1992.