Objectives. The aims of this paper are threefold: first to review brie
fly the theoretical literature on competition and its predicted effect
s on health care quality; secondly to describe the attempts to introdu
ce competition into the UK National Health Service (NHS); and third to
review the outcomes of this experiment and ask how far the research f
indings are consistent with the next phase of reform that the new :Lab
our Government proposed in late 1997. Data sources. A search was condu
cted using electronic data bases Unicorn, Medline and Health Planning
and official monitoring statistics within the NHS. All references rela
ting to district-based purchasing, general practitioner (GP) fundholdi
ng in its various forms and GP commissioning were reviewed. Study sele
ction. Preference was given to prospective before and after studies wi
th and without control groups, retrospective studies with and without
controls, and case studies which were reinforced by similar supporting
case studies.Results of data synthesis. The evidence suggests that th
ere was little overall change for good or bad as a result of the refor
ms. The changes that did occur had an impact on speed of treatment, pa
tient convenience and choice, but medical quality was largely unaffect
ed. These benefits were reaped, in particular, by the more competitive
agents - the family doctors or GPs. Conclusion. Although not dramatic
in outcome, these changes were significant because speed and convenie
nce were the main deficiencies of the NHS in the eyes of UK consumers.