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Related Experiment Videos

NHS reforms. Counting the costs.

C Paton1, K Birch, K Hunt

  • 1Centre for Health Planning and Management, Keele University, UK.

The Health Service Journal
|July 26, 1997
PubMed
Summary
This summary is machine-generated.

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Localism in healthcare purchasing limits markets, with block contracting used to control provider costs. This purchaser-provider split increases administrative expenses within the National Health Service (NHS) and may hinder clinical service reorganization.

Area of Science:

  • Health Services Research
  • Healthcare Management
  • Public Health Policy

Background:

  • Localism is a dominant principle in current purchaser-provider relationships within healthcare systems.
  • Market mechanisms are practically restricted, with block contracting being the prevalent model.
  • The existing purchaser-provider framework has implications for healthcare administration and service delivery.

Purpose of the Study:

  • To analyze the impact of localism on purchaser-provider dynamics in healthcare.
  • To examine the role and consequences of block contracting in managing provider costs and outputs.
  • To assess the effect of the purchaser-provider split on administrative costs and clinical service reorganization within the National Health Service (NHS).

Main Methods:

  • Qualitative analysis of healthcare commissioning and contracting practices.

Related Experiment Videos

  • Examination of administrative cost data related to the purchaser-provider split.
  • Case study review of locality commissioning and its impact on service reorganization.

    • Main Results:

    • Localism restricts market activity, favoring block contracting for cost and output control.
    • The operationalization of the purchaser-provider split has demonstrably increased overall administrative costs in the NHS.
    • Locality commissioning approaches may present challenges to the effective reorganization of clinical services.

    Conclusions:

    • The predominance of localism and block contracting shapes healthcare provider relationships.
    • The administrative burden associated with the purchaser-provider split is a significant concern.
    • Potential conflicts exist between localized commissioning strategies and the need for broader clinical service reform.