WILL MANAGED CARE WORK IN EUROPE

This paper examines major trends in healthcare reforms in the European Union Member States during the last decade. It focuses on managed car e developments and shows that, to a certain extent, managed care in Eu rope is moving towards a consensus. The paper analyses major trends ob served across the European Union including the establishment of overal l budgets for health services, separation of purchasers from providers , competition between providers, capitation payments for doctors, budg et controls on pharmaceutical expenditure and priority-setting methodo logies. It then discusses the potential introduction of new forms of m anaged care and the current weaknesses in information needs and system s. Finally, the policy-makers' dilemmas for resource allocation are ex amined and a framework for policy debate is suggested.