To market, to market: Corporatisation, privatisation and hospital costs

Abstract

The Australian political arena echoes with calls for the privatisation of health careinstitutions, the contracting-out of health care services and the introduction of variousmarketing strategies into hospital management. These calls are justified by assertingthat the market, rather than the public sector, can provide better services, greaterproductivity and increased efficiency. The National Health Strategy (1991, p 17)provides a good example. Noting that Australia is copying American investment trendsfor hospital ?chains? rather than for independent small establishments, the strategydismisses any concern over changes in ownership, pointing instead to a ?process ofrationalisation? that is to be ?welcomed?. Using evidence from the United States,United Kingdom and Australian hospital sectors, this paper examines claims for thegreater efficiency of market processes.