Health finance : assessing the options

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In the current debate surrounding methods of health finance, there has been no shortage of proposals for reform, but there has been a serious shortage of careful analysis of these proposals. This is the main aim of this briefing paper. Through a systematic examination of policy choices, it seeks to inform and illuminate debate. The principal findings discussed are: 1) The central short-term problem facing the NHS in relation to the hospital and community health services; 2) Tight public expenditure constraints, coupled with a commitment by the government to review all available options, are focussing attention on supplementary and alternative sources of finance; 3) Arguments for more radical, insurance-based systems need careful scrutiny; 4) No matter what the level or method of funding, there is a pressing need to ensure that maximum value for money is obtained from NHS budget allocations; 5) Incentives for improved performances are also important; 6) The supply of private health care has grown rapidly in the 1980s.

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