CONTRACTING OUT PELAYANAN KESEHATAN: SEBUAH ALTERNATIF SOLUSI KETERBATASAN KAPASITAS SEKTOR PUBLIK

Murti, Bhisma (2006) CONTRACTING OUT PELAYANAN KESEHATAN: SEBUAH ALTERNATIF SOLUSI KETERBATASAN KAPASITAS SEKTOR PUBLIK. JURNAL MANAJEMEN PELAYANAN KESEHATAN, 9 (3). pp. 109-117.

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    Abstract

    Contracting out is the practice of public sector or private firms of employing and financing an outside agent to perform some specific task rather than managing it themselves. The rationale for contracting is that public providers lack the incentive to use resources efficiently, and that private (or autonomous) providers are more efficient than public providers. Contracting out clearly separates the roles of purchaser and provider, and tightly links payment to performance of the provider. According to classical economic theory, contracting stimulates competition among providers in managed markets, induces cost awareness among providers and purchasers, and enhances transparency in negotiations. Providers are forced to minimize production cost and adjust the prices to meet the demand and requirements of purchasers. All these factors contribute to efficiency. In addition, contracting would promote decentralization managerial responsibility, a shift that would translate in efficiency gains in contrast to the old highly-centralized, bureaucratic structure, considered insensitive of the cost implications of allocative decisions. As is the case with any model, contracting out approach is not a panacea to all health problems. But in light of the limited absorptive capacity of the public sector, it is an alternative strategy worth considering for increasing the coverage and the quality of services in developing countries such as Indonesia. Monitoring and evaluation is an indispensible instrument for contracting out to exhibit its relative advantages. Keywords: contracting, health services, public, private, managed market

    Item Type: Article
    Subjects: R Medicine > R Medicine (General)
    Divisions: UNSPECIFIED
    Depositing User: mr azis r
    Date Deposited: 17 May 2013 21:52
    Last Modified: 17 May 2013 21:52
    URI: https://eprints.uns.ac.id/id/eprint/728

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