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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References in periodicals archive ?
Earlier studies indicate that the purchaser-provider split in practice not live up to the ideal of competition and contractual management (Walsh 1995, Hughes et al.
In Finland the purchaser-provider split has aimed at the improvement of health care efficiency and mechanisms with which the state tries to direct the implementation of the model in practice.
At the same time, with the introduction of the internal market [requiring market-replicating contracts between components of the NHS] and the purchaser-provider split, the Tories had also begun to transform the hospitals into semiautonomous provider institutions like corporations.
It will move to a purchaser-provider split, which allows the agency to both provide services itself and purchase services from vendors.
A purchaser-provider split was introduced as part of market reform in 1993.
The conclusion of the book, however, makes depressing reading: despite the relative success of the NSU, further NSU buildings could not be contemplated because of their cost, the effects of the purchaser-provider split in social care and the creation of primary health care teams all acted to dilute the concept of NSUs and joint working between health and social services.
Working for Patients (1989), implemented in 1991, introduced into the National Health Service (NHS) the purchaser-provider split, which created an "internal market" for health care.
Of course, the authors are American, and their book is largely derived from the American context in which the purchaser-provider split has a venerable tradition.
The second key aspect of the government stewardship role is the creation of a regulatory framework that stands in place of hierarchical management control where there is a purchaser-provider split. Two broad insights for regulation are offered by our complementary theories.
It will be several years before this 'purchaser-provider split' will be fully operational, but opportunities are already arising for exploring these new relationships.
"Many savings can be gained by changing the ways we do things, like getting rid of the market place in health care, the so-called purchaser-provider split." He wanted to stop the use of "expensive management consultants and public relations firms".