Financing the U.K. national health services.

In this article a short description is given of the national health services in the United Kingdom. It is observed that the ways of financing the services have changed only marginally over the decades. Furthermore, it is pointed out that not much is really known about the efficiency of health care provision in the NHS. It is clear, however, that there are many adverse incentives in financing and payment arrangements. A number of recent innovations to overcome the observed problems are being discussed as well as a number of ideas to change organisational structures and incentive systems. One of the more promising ways seems to be to reorganise buying power of the financing agencies within the NHS and use this to countervail the power of providers.