Internal Markets: Are They Really the Panacea for Health Care Provision? An Antipodean View

Disquiet has been expressed in a number of countries regarding the cost of health care provision. The UK and New Zealand have extensively reviewed funding mechanisms including the application of an“internal market” as advocated by Enthoven. Currently there is active disillusionment in some administrative circles in the USA due to burgeoning increases in health spending, to the extent that a universal health service has even been considered. The applicability of an “internal market” is questioned and various consequences that may result if this concept is implemented rigorously are reviewed.