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Investigates the perception of and attitudes towards competitive tendering for ancillary services of the hospital populations in three Scottish NHS hospitals. Results suggest that: there is a discrepancy between the Government′s stated objectives and those perceived by the public; it is unclear precisely what this and other Government initiatives mean; the role of ancillary staff in the ward team has not been fully recognized in the contracting exercise. Argues for broadening of the concept of cost‐effectiveness to include some non‐financial measures.

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