New Public Management Essay

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This literature review looks at concepts from different areas of study that can help analyse and resolve issues affecting the management of operation theatres. The first section (p.7) reviews recent models for reform introduced in the public sector, with special attention on ideas borrowed from business and corporate practices…

Introduction

This review will then investigate the observed impact of NPM on the health sector and the effects of adopting market-oriented concepts, as reported in a study conducted by the World Bank (p.13)
Moreover, NPM will be a viable reference because it has been documented to influence the financial policies of many governments. Policy issues directly affect public institutions like hospitals because reduced funding restrictions - a reality in many countries and one of the benefits of the NPM approach - will ultimately have an effect at the operational level. That is, hospitals may be compelled to improve procedures and practices, especially in terms of resource allocation, but they must also strive to improve the level of customer satisfaction. The market orientation of the NPM model will be particularly helpful in this area.
Thus, with NPM theories as basis, this review will proceed to investigate process level concepts that are also oriented towards efficiency (p.15), which include action research, clinical pathways, service redesign, and operations management. The final section (p.18) looks at several initiatives that aimed to improve operations and practices in hospitals and especially, in operating theatres. The sources cited in this review are summarized in Table 1.
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