IDEAS home Printed from https://ideas.repec.org/p/zbw/ieadps/314028.html
   My bibliography  Save this paper

The denationalisation of healthcare: How to replace the NHS with a social health insurance model

Author

Listed:
  • Niemietz, Kristian

Abstract

Until very recently, Britain's National Health Service used to be beyond argument. The reverence for the health service often precluded anything resembling a rational discussion around it: the social taboos were simply too strong. Yet over the past two years or so, this has begun to change. We can now quite regularly find articles in the mainstream media which openly criticise the NHS, and point to better alternatives. In particular, advocacy of Social Health Insurance (SHI) systems has become part of the mainstream debate. SHI systems are market-based, competitive and largely non-state systems, in which the role of the state is not to run healthcare facilities, but to insure universal access. In terms of clinical outcomes, these systems tend to outperform the NHS, and they have done so for as long as we have data. This is not simply the result of better funding. While examples of a wholesale switch from an NHS-type system to an SHI-type system are rare, they do exist. The Czech Republic and Slovakia did precisely that over the course of the 1990s, and eastern Germany did so in the early 1990s as part of the Reunification process. The example of the Netherlands is also instructive. They never had a national health service, but until the mid-2000s, they had a system which, while notionally private, was very NHS-like in practice. Since then, they have replaced that system with a competitive, market-based, private SHI system. None of these examples are easily transferable to the UK, but what they do show is that a transition from one healthcare system to another need not be especially disruptive. It can be done in an orderly fashion, and it has been successfully done.

Suggested Citation

  • Niemietz, Kristian, 2024. "The denationalisation of healthcare: How to replace the NHS with a social health insurance model," IEA Discussion Papers 128, Institute of Economic Affairs (IEA).
  • Handle: RePEc:zbw:ieadps:314028
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/314028/1/iea-dp128.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. van de Ven, Wynand P.M.M. & Beck, Konstantin & Buchner, Florian & Schokkaert, Erik & Schut, F.T. (Erik) & Shmueli, Amir & Wasem, Juergen, 2013. "Preconditions for efficiency and affordability in competitive healthcare markets: Are they fulfilled in Belgium, Germany, Israel, the Netherlands and Switzerland?," Health Policy, Elsevier, vol. 109(3), pages 226-245.
    2. Kristian Niemietz, 2015. "Internal Markets, Management by Targets, and Quasi-Markets: An Analysis of Health Care Reforms in the English NHS," Economic Affairs, Wiley Blackwell, vol. 35(1), pages 93-108, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Burkhard & Christian P. R. Schmid & Kaspar Wüthrich, 2019. "Financial incentives and physician prescription behavior: Evidence from dispensing regulations," Health Economics, John Wiley & Sons, Ltd., vol. 28(9), pages 1114-1129, September.
    2. Rudy Douven & Ron van der Heijden & Thomas McGuire & Erik Schut, 2017. "Premium levels and demand response in health insurance: relative thinking and zero-price effects," CPB Discussion Paper 366, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Douven, Rudy & van der Heijden, Ron & McGuire, Thomas & Schut, Frederik, 2020. "Premium levels and demand response in health insurance: relative thinking and zero-price effects," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 903-923.
    4. Niemietz, Kristian, 2015. "A patient approach: Putting the consumer at the heart of UK healthcare," IEA Discussion Papers 64, Institute of Economic Affairs (IEA).
    5. Wynand P. M. M. Ven & René C. J. A. Vliet & Richard C. Kleef, 2017. "How can the regulator show evidence of (no) risk selection in health insurance markets? Conceptual framework and empirical evidence," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(2), pages 167-180, March.
    6. Noort, Bart A.C. & Ahaus, Kees & van der Vaart, Taco & Chambers, Naomi & Sheaff, Rod, 2020. "How healthcare systems shape a purchaser’s strategies and actions when managing chronic care," Health Policy, Elsevier, vol. 124(6), pages 628-638.
    7. Peter Dohmen & Martin Ineveld & Aniek Markus & Liana Hagen & Joris Klundert, 2023. "Does competition improve hospital performance: a DEA based evaluation from the Netherlands," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(6), pages 999-1017, August.
    8. Stolper, Karel C.F. & Boonen, Lieke H.H.M. & Schut, Frederik T. & Varkevisser, Marco, 2022. "Do health insurers use target marketing as a tool for risk selection? Evidence from the Netherlands," Health Policy, Elsevier, vol. 126(2), pages 122-128.
    9. Remers, Toine E.P. & Wackers, Erik M.E. & van Dulmen, Simone A. & Jeurissen, Patrick P.T., 2022. "Towards population-based payment models in a multiple-payer system: the case of the Netherlands," Health Policy, Elsevier, vol. 126(11), pages 1151-1156.
    10. Daniëlle Duijmelinck & Wynand Ven, 2014. "Choice of insurer for basic health insurance restricted by supplementary insurance," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(7), pages 737-746, September.
    11. Maarse, Hans & Jeurissen, Patrick, 2019. "Low institutional trust in health insurers in Dutch health care," Health Policy, Elsevier, vol. 123(3), pages 288-292.
    12. Bes, Romy E. & Curfs, Emile C. & Groenewegen, Peter P. & de Jong, Judith D., 2017. "Selective contracting and channelling patients to preferred providers: A scoping review," Health Policy, Elsevier, vol. 121(5), pages 504-514.
    13. Christian Philipp Rudolf Schmid, 2017. "Unobserved health care expenditures: How important is censoring in register data?," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1807-1812, December.
    14. A. A. Withagen-Koster & R. C. Kleef & F. Eijkenaar, 2018. "Examining unpriced risk heterogeneity in the Dutch health insurance market," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(9), pages 1351-1363, December.
    15. Sigrid M. Mohnen & Sven Schneider & Mariël Droomers, 2019. "Neighborhood characteristics as determinants of healthcare utilization – a theoretical model," Health Economics Review, Springer, vol. 9(1), pages 1-9, December.
    16. Duijmelinck, Daniëlle M.I.D. & Mosca, Ilaria & van de Ven, Wynand P.M.M., 2015. "Switching benefits and costs in competitive health insurance markets: A conceptual framework and empirical evidence from the Netherlands," Health Policy, Elsevier, vol. 119(5), pages 664-671.
    17. Rudy Douven & Ron van der Heijden & Thomas McGuire & Frederik T. Schut, 2017. "Premium Levels and Demand Response in Health Insurance: Relative Thinking and Zero-Price Effects," NBER Working Papers 23846, National Bureau of Economic Research, Inc.
    18. Willemse-Duijmelinck, Daniëlle M.I.D. & van de Ven, Wynand P.M.M. & Mosca, Ilaria, 2017. "Supplementary insurance as a switching cost for basic health insurance: Empirical results from the Netherlands," Health Policy, Elsevier, vol. 121(10), pages 1085-1092.
    19. Niemietz, Kristian, 2015. "Diagnosis: Overated. An analysis of the structural flaws in the NHS," IEA Discussion Papers 66, Institute of Economic Affairs (IEA).
    20. Chandeni S. Gajadien & Peter J. G. Dohmen & Frank Eijkenaar & Frederik T. Schut & Erik M. Raaij & Richard Heijink, 2023. "Financial risk allocation and provider incentives in hospital–insurer contracts in The Netherlands," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(1), pages 125-138, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ieadps:314028. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ieaaauk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.