PUBLIC & PRIVATE SECTOR IN HEALTH AND EDUCATION

Statement Evaluation - Why the public sector cannot be as efficient as the private sector in terms of health and education



Statement Evaluation - Why the public sector cannot be as efficient as the private sector in terms of health and education

Introduction

Public and private sector healthcare organizations are frequently compared in healthcare system management studies and healthcare system journals. This paper will attempt to contribute to this discussion by concisely and comprehensively elaborating on the perspective that there is no reason because of which public sector healthcare organizations cannot be as efficient as private sector healthcare organizations. In this regard, the discussion will be carried out on the premise that private sector healthcare organizations generally manage to function with far more efficiency than that with which public sector healthcare organizations manage to function. The purpose of this paper is to elaborate on the perception that there is no reason why public sector cannot be as efficient as the private sector. In order to do so, the paper will engage in a holistic analysis of the subject at hand. Furthermore, the discussion will encompass an elaboration of some of the most frequently debated issues on the subject. The discussion will highlight the factors that are generally underestimated and undermined in terms of their relevance. Furthermore, the discussion will also provide an analysis of the factors that come forth as restrictions in the performance of the public sector when compared with the performance of the private sector.

Discussion

The private sector's efficiency is generally attributed to the desire of the private sector to maintain a balance between profits and expenses, whereas the public sector seeks to function at a break-even position where profits are not the primary goal. In this regard, it is essential to realize that a significant difference is created between the healthcare system management approaches that are employed by the public sector and the private sector respectively (Great Britain: Parliament: House of Commons: Justice Committee, 2009). The difference between these healthcare system management approaches forms the essential difference between the efficiency of these sectors.

The public sector can bring about a degree of efficiency that will be comparable to the private sector if it chooses to exercise the same healthcare system management approach that is employed by the private sector (West, 2007). For instance, if the purchasing of supplies is centralized, then it will enable the supplier to supply products at a cheaper price. This will bring about cost reduction and this cost reduction will eventually translate into an increased level of efficiency on the part of the public sector organization.

If a critical approach was to be adopted, then there is no denying the fact that the public sector has access to far more resources than the private sector. Therefore, the public sector does not experience any deficiency in resources and assets. In addition, the expanse of the public sector enables it to purchase the resources that it does not ...