Chile's long term social policy has produced very impressive outcomes
in general health indicators, with a national health service establish
ed as early as 1952. During the years of the Pinochet dictatorship (19
73-89) public health institutions were greatly affected, with sharp di
minution in financing which affected investment and salaries. The demo
cratic government initiated in 1990 faced a difficult situation, with
underpaid staff and decrepit hospitals. The ministry took immediate ac
tion to improve salaries and start an ambitious health sector reform i
ncluding investment in infrastructure, technology, and modern manageme
nt. Decentralisation and autonomy, changes in payment for service mech
anisms, and a public-private mix are the main objectives of this refor
m, keeping the public role as predominant in the proposed structure. T
his process has been affected by union unrest and public opinion dissa
tisfaction, which tend to present obstacles to progress in this compli
cated issue.