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Privatization Assignment - NHS

   

Added on  2020-01-28

13 Pages2657 Words43 Views
Privatization is an appropriate Policyresponse in a time of Austerity

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3INTRO CONCEPTS........................................................................................................................3ARGUMENT 1................................................................................................................................4ARGUMENT 2................................................................................................................................5CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONPrivatization can be defined as a process in which one firm or organization can transfer orshift from public sector to private sector. All the services which are running by the governmentcome under public sector. The other services which are owned by the individual person, comesunder private sector organization. The government do not have any control on private sectororganization. Nowadays, privatization is occurring majorly in developing countries and somedeveloped countries are already shifting from the public sector to private sector. This is becauseprivatization maintains proper competition in the market which leads to better services, low costand less corruption (Hall, Miller and Millar, 2016). At the same time, most people think that theservices like health and social care, law enforcement, education; they should remain in publicsector so that the government will have more control and more access over it. Austerity is theterm which is related to privatization. It is the difficulties and which are created by thegovernment to reduce the expenditure of the public sector. INTRO CONCEPTSAusterity:This can be defined as those conditions which are particularly created by thegovernment, so that they can reduce the public expenditure. In most of the countries, these typeof measures generally develop the unemployment, and it will reduce the jobs in public sectoer aswell as in private sector. Nature of AusterityThe overhead costs of management and their administration is more than doubledon NHS and it is generating 14-15% of turnover but still growing as the market is closing,despite being short of levels of US bureaucracy. USA is the only developed country which thinks the health and care services are to makeprofit from patients not as a welfare services. The best and the efficient part of USA health andsocial care system is that government is paying for the medical treatment of the people who are65 years old or over that.

There was a rumour that NHS is very close to financial collapse (Richards, 2013). Therewas a continuous state of crisis in terms of health and social care funding that resulted indecrease in the quality of services and which caused the industry to move towards privatisation.In UK, all the health and care services are a little more expensive as compare to other nations(Windebank and Whitworth, 2014). In USA the health and social care services are distributed notaccording to the market or patient need, but it is more according to the ability of pay. So thosepeople who are in the greatest need will be the ones who are paying least. Though, the market inUSA is good but when it comes to health and social services, it is not the same (Powell, 2016).Privatization: It can be referred as the transfer of a particular business, industry or otherservices from public enterprises to private enterprises. ARGUMENT 1NHS management is more than outweighed due to the external work which was taken bythe management, this is because of privatization. They are now charging way too much moneyfor even the smallest of works, but it is safe to say that there is no enough scrutiny of quality ofwork done by NHS. This all money is in excess but it is all wasted, and the pressure on NHSfunding is decreasing which will freeze in real terms in the coming years. In UK, all the citizensknow that it is well publicized failure, but despite this NHS remains hugely popular and this isthe main problem for the privatization including the utilities in the public sector which are soldby the government (Klein, 2015).This is the program which is the single one based on the private sector where governmentis paying the money. But the people who are below the age of 65 gets tax free health from theiremployers. The employers select the plan and the best insurance company, and that pay getsdeducted from the salary of the employee in the smallest portion possible. But this also done forthe profit, as they try to keep the premium down, profit up by sparing on the health and careservices. Thus, taking all these measures into account one can say that private companies andhealth care organizations are hard to trust, in health industry. One of the most influencing factorin the health and care services that is, patient like to treat early and in the effective manner(Weiss, 2015).4

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