Public health care and contracting out: Can it work? Global review presents some answers
Medical Xpress
February 14, 2026
AI-Generated Deep Dive Summary
Can public health systems effectively contract out services to meet universal health coverage goals? This article explores whether contracting out healthcare services can enhance access, quality, and affordability while addressing challenges like equity and accountability. Drawing from global examples, it highlights both opportunities and risks associated with privatizing public health care.
The review examines successful cases where contracting out has improved service delivery, such as in Sweden and New Zealand, where clear regulations and competition among providers have ensured efficiency without compromising equity. However, it also points to limitations, particularly in low-income regions of India and South Africa, where private contractors may lack incentives to serve underserved populations, leading to inequitable access.
Key factors for success include strong regulatory frameworks, transparent tender processes, and robust oversight mechanisms. These elements ensure that contracted services meet quality standards and align with public health priorities. The article underscores the importance of balancing market dynamics with social accountability to avoid exacerbating inequalities.
Ultimately, the study suggests that contracting out can work if implemented thoughtfully, with a focus on collaboration between public and private sectors. By addressing systemic barriers and prioritizing equity, policymakers can leverage outsourcing to advance universal health coverage and
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Originally published on Medical Xpress on 2/14/2026