The Study of Management Contract Conditions in Healthcare Organizations of Selected Countries

Public hospitals can privatize management activities by contracting with a private organization or person to perform the work. Management contract is a method which uses private sector for major government projects like hospitals. This review study evaluated management contract conditions in selected countries. We focused on services under contract, different forms of management contract, methods for monitoring contracts, effects of management contract on factors under study, and the payment system in management contract. Management contract is the most common type of privatizing management. In this method, the responsibility and control of a healthcare organization is granted to a person or a private organization. Contracting is used strategically to introduce market mechanisms while ensuring that essential public services are provided. Therefore, the government needs to recognize contracting as a powerful process, not just a cluster of independent transactions. This means that contracting initiatives must be regulated and monitored at the highest level of government by experienced and astute policy makers, economists and operational personnel.