FUNDHOLDING - THE NEST 5 YEARS

On 1 April 1993 third-wave fundholders (second-wave fundholders in Sco tland) received their budgets. In some areas, over 50 per cent of the population are now served by fundholding practices. This paper examine s the limited evidence to date on the effects of fundholding. Four are as of concern are identified: priority setting by fundholders; the man agement of financial risk; budget setting; and the allocation of resou rces between fundholders and non-fundholders. In each of these areas, ways in which the scheme might be improved are discussed.