ECONOMICS

Economics

Economics

The three sectors share the responsibility to deliver local support and care services

Mixed economy of care is the provision of care by a range of service providers. Instead of services being solely provided by the NHS and social services (the public sector), some services are commissioned from the independent and voluntary sectors. The independent sector is commercial organisations or individuals who provide services for profit, and the voluntary sector provides services on a non-profit basis. The three sectors share the responsibility to deliver local support and care services. As a result, the health and social care system has become more diversified with many different providers entering the market.

There are several advantages to mixed economy of care. These are greater choice for service users, greater flexibility in the range of services on offer, more responsiveness to needs, more cost-effectiveness, and a better quality of services. The government's main objectives when introducing mixed economy of care were fairness, choice and effectiveness. On the flip side, the disadvantages are that it creates a two-tier system of winners and losers, is not as cost-effective as first thought, geographical unevenness and more administration and bureaucracy.

A mixed economy involves a degree of private economic freedom mixed with a degree of government regulation. The government regulates the extent to which commercial organisations and individuals can pursue their own self-interest. The government also provides some funding for voluntary organisations working in health and social services. Health authorities and local authorities also make grants to local organisations. There has been an explosion in the number of voluntary organisations as a result of the health and community care reforms. Most voluntary organisations in the healthcare area have charitable status.

What are the relative merits and possible disadvantages of all the sectors included in the term the 'mixed economy?

There are numerous advantages ...