purchaser-provider split


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purchaser-provider split

an arrangement under which the unified management system of an organization is split into purchasers who buy goods or services and providers who supply goods or services. The purchaser-provider split serves to create an INTERNAL MARKET in which the true costs of making goods or services are easier to identify and incentives to reduce costs are provided. Purchase-provider splits were introduced in the UK health service in the 1980s. See NEW PUBLIC MANAGEMENT, COMPETITIVE TENDERING.
References in periodicals archive ?
He added: "She was very disappointed when the purchaser-provider split came in under Tony Blair's government, knowing it would make the bureaucracy massive.
The purchaser-provider split and provider payment mechanisms are also thinly discussed, even though they are integral to most healthcare financing reforms in the world.
A: As part of our 12-point plan, long term we would like to abolish the purchaser-provider split because it is divisive, costly and disastrous.
Consecutive Welsh governments have diminished the role of the private sector from the NHS, and the purchaser-provider split no longer operates.
Health Minister Edwina Hart yesterday unveiled the latest proposals to reform the NHS which would end the historic purchaser-provider split in healthcare.
The purchaser-provider split has been a very popular way of organizing health care activities in many countries.
and reforms that focused on the purchaser-provider split.
It will move to a purchaser-provider split, which allows the agency to both provide services itself and purchase services from vendors.
A purchaser-provider split was introduced as part of market reform in 1993.
The conclusion of the book, however, makes depressing reading: despite the relative success of the NSU, further NSU buildings could not be contemplated because of their cost, the effects of the purchaser-provider split in social care and the creation of primary health care teams all acted to dilute the concept of NSUs and joint working between health and social services.
Working for Patients (1989), implemented in 1991, introduced into the National Health Service (NHS) the purchaser-provider split, which created an "internal market" for health care.

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