CONTENTS
Terms of Reference Page: 3
Executive Summary Page: 3
Main Body:
-Background Information: Page: 3
-Problems with the NHS: Page: 4
-Theories: Page: 4
Solutions/Conclusions: Page: 7
TERMS OF REFERENCE
We are a group of economic consultants approached by The Principal Research Offices in Downing Street Strategy. We are analyzing the problems of the National Health Service (NHS), relating it back to different theories and finding possible solutions for NHS to meet their expectations.
EXECUTIVE SUMMARY
The problems which have arisen since the NHS started are that, not enough money is being invested in the NHS by the Government, therefore causing a lack of resources, which leads to longer waiting hours and poor pay on behalf of the staff.
The theories that coincide with the position of the NHS at this moment in time are scarcity, rationing, opportunity costs and the Economic Systems. As we already know the NHS has trouble with its finances concerning their expenditure. Therefore their scarcity levels have caused them to limit the amount of resources that they have. As a result they have to ration their resources effectively and wisely in order to meet with their patients’ high level of demand.
With regards to the Economic Systems, the NHS is a mixture of both Free Market Economy and Command Economy, therefore making it a mixed economy. This system allows more Government control over the NHS on things such as pricing and decision making.
Based on these theories, we have come up with a few solutions, which we think may help the NHS overcome the problems that they are faced with. Firstly, the Government could privatise t ...