Management and Monitoring: Public sector managements are sometimes insufficient. The traditional working ethics cannot comply with the current environment. The skill sets of public sector managers are often inadequate if private financial techniques are involved. We use NHS Trusts as an example. With public expenditure control in sight, NHS Trusts does not use direct investment funds, which results in inefficiency in the use of NHS available funds. A structural change may happen when politicians face a persistent policy problem. When facing the continued financial pressure for public health expenditure, and also the constant income tax rates constraints, UK government has tried to make its own structural change (McSherry and Haddock, 1999) in the process of introducing private sector practice into the NHS. Private contracts offer a way for the politicians to evade their task to increase current expenditure while keeping the current tax rates, as it gives a quick return for the near future. The politicians and their managers are only responsible for a short horizon of the entire flow of NHS fund. An immediate …show more content…
Private PFI providers may then enter into contracts with local NHS Trust managers in the knowledge that the NHS as a whole will pick up the bill for whatever future financial obligations the current managers agree to (Pollock, Dunnigan, Gaffney, Price, and Shaoul,