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Internal Markets,Management by Targets,and Quasi‐Markets: An Analysis of Health Care Reforms in the English NHS
Authors:Kristian Niemietz
Affiliation:Institute of Economic AffairsThe author would like to thank the Age Endeavour Fellowship for its generous financial support, which has made possible the research project of which this article is a part. The article is loosely based on a presentation given at the IEA conference on New Frontiers in Privatisation, 31 August–3 September 2014, Lake Bled, Slovenia.
Abstract:There have been two major attempts to introduce market mechanisms into England's National Health Service: the ‘internal market’ reform project of the 1990s, and the ‘quasi‐market’ of the 2000s. Despite their similarities, the former attempt was on balance unsuccessful while the latter succeeded. This article examines and compares the outcomes of the two periods, analysing the reasons for their relative successes and failures. It goes on to highlight options for future reforms that would build on those achievements.
Keywords:H44  H51  I11  I18  Foundation Trusts  internal market  NHS reform  Payment by Results  purchaser–  provider split  quasi‐market
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