Cm. Dayan, PROVIDER POWER - AN IMPORTANT LESSON FROM THE UNITED-STATES HEALTH-CARE MARKET, Journal of the Royal College of Physicians of London, 27(3), 1993, pp. 238-241
In the development of the recent NHS reforms, little attention appears
to have been paid to the American experience with health care markets
. The US experience suggests that true competition is almost impossibl
e to achieve in health care, and that providers rather than purchasers
rapidly come to dominate the market. The end result of separating pur
chasers from providers is to inflate rather than contain health care s
pending. These conclusions have important implications for the future
of the NHS internal market. In addition they reveal a dilemma for cons
ultants in hospital (provider) trusts: is their first duty to the need
s of the community or to the economic survival of their institution?