A larger role for the private sector in financing UK health care: The arguments and the evidence

This article examines whether an extension of private finance would improve either the efficiency or the equity of the UK health care system. A number of arguments for increasing the role of private finance that focus on the impact of private finance on the efficiency of the public sector are examin ed in conjunction with empirical evidence from a number of OECD countries. The conclusion is that the case for some extension of private finance Is fi nely balanced. There is little evidence to show that Increasing private fin ance would improve the efficiency of the NHS. On the other hand, the eviden ce suggests that it is unlikely that increasing private finance at the marg in will alter the support for the NHS, and thus willingness of individuals to pay taxes for public care. In addition, if private finance is supplement ary, increased finance will be progressive in terms of payments for health care.