Dealing with market failure: A new dilemma in UK health and social care policy?

Abstract

Public services are being increasingly outsourced across Europe, and especially in England. This trend raises the question of how to deal with ‘market failure’ where outsourced providers are no longer able or willing to continue with provision. The case of social care and health care in England is a critical policy arena. Following the collapse of Southern Cross – a major care provider – in 2011, policies on stronger provider regulation have been put in train in an attempt to forestall potential service failure. This commentary examines these proposals, concludes that they are insufficiently robust and suggests some alternative measures.