National Health Service waiting lists. A discussion of competing explanations and a policy proposal

A discussion of the main arguments advanced to explain waiting lists in Britain's National Health Service (NHS) is presented in a framework which focuses upon 'demand' and 'supplier induced demand' considerations. The difficulties associated with determining an optimum waiting list are explicitly emphasised. Hence it is in the context of an alleged requirement to reduce numbers waiting that the proposal to offer a price subsidy for private medical care is appraised. Such a policy is compared with that of direct expansion of expenditure on the NHS. Attention is drawn to the second round effects of 'supplier induced demand' which may be associated with these policies.