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The national debate in the UK that followed publication of the Health Service Review in January 1989 overshadoived growing awareness among those concerned with National Health Service management of the potential importance of another set of Government proposals. These proposals have potential for effecting more significant change in the NHS than do self‐governing hospitals and general practice budgets. Indeed, while local managers and doctors argue about the merits and demerits of ‘Working for Patients’, politicians and civil servants in the higher echelons of Government are focusing much of their attention on this other set of proposals as the basis for more fundamental Health Service reform.

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