Delivering Health Services under New Public Management: Is it a Good Model for Emerging Economies?

Date01 January 2015
AuthorSigamani P.
Published date01 January 2015
DOI10.1177/0019556120150111
Subject MatterArticle
DELIVERING HEALTH SERVICES UNDER NEW
PUBLIC MANAGEMENT: IS
IT
A GOOD MODEL
FOR
EMERGING ECONOMIES?
SIGAMANIP.
This article examines evidence-based practice
of
New Public
Management (NPM) in healthcare organisations. This review
is drawn on the basis
of
NPM
practice in different countries,
especially in emerging economi
es.
This article examines broad
public
policy
arrangements, origin
and
theoretical basis
of
NPM, including public sector reform, key actors
and
promoters
of
NPM
in health sector, key elements
and
characteristics
of
NPM
and
its relevance to health care services.
INTRODUCTION
DURJNG THE 1980s it was realised that the main thrust
of
the reforms
is driven by economic crisis (Russel,
et
al. 1999), global oil crisis, and
financial crisis which reflected in the form
of
pay for service (cost sharing).
International agencies like the World Bank, World Health Organization
(WHO),
International
Monetary
Fund
(IMF),
and
Commonwealth
Secretariat and management consultancy groups encouraged lower-income
countries including African
and
Asian nations for NPM options with
conditionality. The New Public Management (NPM) emerged during 1980s
in the UK (including Europe), New Zealand, Australia, and America. It also
spread to many other OECD countries during the 1990s and later to the
African and Asian countries. International donor agencies promoted this
reform process across the globe. NPM had different characteristics such
as contracting out, budget cut, performance budgeting and creation
of
autonomous or semi-governmental organisations. In healthcare services the
notable changes have included contracting out
of
services to private and
non-governmental organisations and creation
of
autonomous organisations.
Traditional public management was criticised as monopolistic,
overcentralised, hierarchical, and unresponsive to the taxpayers (Bossert
et
al.,
1998.
Mills, 1995). This is one
of
the reasons to refonn the public
sector and later this reform was termed as
NPM
or New Public Policy

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