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Private Patients in N.H.S. Hospitals: Waiting Lists and Subsidies

In: The Economics of Health and Medical Care

Author

Listed:
  • Anthony J. Culyer

    (University of York)

  • J. G. Cullis

    (University of York)

Abstract

Private practice by National Health Service (N.H.S.) consultants in its hospitals is alleged both to inflate the lists of those (N.H.S. patients) waiting for admission as inpatients and to involve substantial transfers that internalize no externality and that are, moreover, regressive. This paper shows that, on certain assumptions, the short-term effects of removing private practice in N.H.S. hospitals include only minor (positive or negative) effects on waiting lists. In the longer run, if private hospitals can provide sufficient substitute care and of other inputs (such as consultant time in the N.H.S.) do not fall and inpatient referrals do not rise faster than the trend, then substantial reductions may be gained. The paper also shows that the present structure of charges does not cover the full costs of care and that net transfers to private patients may take place, even allowing for the tax price paid by such patients.

Suggested Citation

  • Anthony J. Culyer & J. G. Cullis, 1974. "Private Patients in N.H.S. Hospitals: Waiting Lists and Subsidies," International Economic Association Series, in: Mark Perlman (ed.), The Economics of Health and Medical Care, chapter 7, pages 108-116, Palgrave Macmillan.
  • Handle: RePEc:pal:intecp:978-1-349-63660-0_7
    DOI: 10.1007/978-1-349-63660-0_7
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    Cited by:

    1. Alan Williams, 1998. "Primeval health economics in Britain: A personal retrospect of the pre‐HESG period," Health Economics, John Wiley & Sons, Ltd., vol. 7(S1), pages 3-8, August.

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