This review examines the performance of the UK health care system. After presenting data on the level and distribution of resources, three topics are examined. The first is the lessons from international comparisons of evidence on expenditure, equity and health care outcomes. The second is the lessons from the recent internal market reforms. The third is the lessons from an analysis of the role for private finance in UK health care. The review concludes that economists and policy makers need to focus more attention on the relationship between health care inputs - expenditure - and health outcomes, and within this on the incentives facing suppliers and demanders of health care.
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