Introduction: evaluating health care reform



Economists argue that government intervention should begin with an analysis of the institutional failure it seeks to remedy, though politicians often start elsewhere. In the second half of the 1980s the Conservative government became increasingly interested in the application of market-type mechanisms to transactions within the National Health Service, and by 1991 it had introduced to the service reforms hailed as the most substantial since its inception. The major instrument of these reforms was the creation of a market internal to the NHS premised on a clear separation between purchasers and providers of health care.


Internal Market Average Cost Diagnosis Related Group Health Care Sector Term Relationship 
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© Paul Anand and Alistair McGuire 1997

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