The aim of this paper is to explore priority setting issues in the British
National Health Service (NHS). It focuses on the changing way in which rati
oning issues are managed by a sample of English health authorities in the w
ake of Health Service reforms and the separation of function between purcha
sing and providing health care, The paper employs the conceptual framework
of 'governmentality', associated with the French social theorist Michel Fou
cault. to analyse this aspect of contemporary British health policy. Govern
mentality analysis situates social and economic change as reflecting shifts
in the 'mentality' of government. The consequence of this new articulation
is that the concepts of priority setting and rationing become embedded as
dominant discourses and emergent practices within health policy. Equally im
portant is the way in which the perceived shift in the formula of governanc
e also results in a different conceptualisation of the subject of health go
vernance based on the management of individual risk.