Internal Markets in Health: The Reform of the NHS
Arruñada, Benito (1991), “Internal Markets in Health: The Reform of the NHS,” Revista de Economía, 11, 80.
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The introduction of the “internal market “ in the National Health Service was an ambitious rationalizing project. But it also exemplifies the limitations of political action. Despite being a market solution it was undertaken late and slowly, and the Government was tempted to buy his acceptance increasing the expense, the incomes of the providers and the quality of services.
Moreover, can markets work properly without property rights? Do not they then require spending hugely and to little effect on administration? Deep down, does it make sense to cure bureaucracy with more bureaucracy? Some elements of markets are essential for managing public bureaucracies, but with minimum management effort, in a sort of automatic management. See, on this, [this other paper](http://www.econ.upf.edu/docs/papers/downloads/490.pdf).