purchaser-provider split


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purchaser-provider split

an aspect of the introduction in the UK of quasi-market mechanisms to the state and the public sector, initiated under the governments of Margaret Thatcher.

After World War II the State undertook the role of producer, supplier and coordinator of various services, including health and welfare. This began to change in the 1970s and with the advent of THATCHERISM in the 1980s these developments were taken further. A new minimal role for the state as buyer, rather than supplier, of services was created. These changes were ubiquitous, permeating local government too, where councils and authorities were compelled, by the Local Government Act of 1988 and the NHS and Community Care Act 1990, to allow INDEPENDENT SECTOR bodies to supply services. This has occurred through processes of Compulsory Competitive Tendering, and increased regulation. See also WELFARE STATE, PERFORMANCE INDICATORS, CIVIC ENTREPRENEURSHIP, AUDIT SOCIETY.

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