In an ever-tightening fiscal environment, the focus of NSW health policy must be the microeconomic reform of the rigid, public service monopoly model of public hospital care. The adoption of market or private sector methods, including greater involvement of private operators in the delivery of public health service, should be encouraged to enhance productivity and improve access to quality hospital services at the least cost.

David Gadiel is an independent health economist with experience in the NSW health system.
Dr Jeremy Sammut is a Research Fellow at The Centre for Independent Studies.