- The NHS is preoccupied by austerity: it must find £20 billion (about $30 billion) worth of efficiency savings by 2015.
- Further, the health service is still reeling from a failed central-computer project that has ended up costing over £12 billion (almost $19 billion).
- Most importantly, innovations do not spread in Britain’s health sector because the NHS has no mechanism for ensuring they do, or for rewarding the inventive.
- The service is centrally funded and emphasizes the universality of its care rather than its results.
- As a result, the system is likely to prove better at controlling costs than at encouraging good ideas to thrive.
- Additionally, because hospitals do not directly compete with one another (nor are they allowed to acquire one another unless they are in dire financial straits), PICS [which reduces errors and mortality] is not likely to be unilaterally adopted by other institutions.
More on the British National health service in The Economist.