We discuss and evaluate the validity of this claim, particularly in the context of the National Health Service (NHS) of UK. The discussion is carried out at two levels: first a descriptive assessment of some important theories of organisational change and secondly, an examination of their relevancy to changes in NHS of UK.
The UK's National Health Service (NHS) came into operation on the fourth of July 1948. It was the first time that completely free healthcare was made available on the basis of citizenship rather than the payment of fees or insurance premiums. The service has been beset with problems throughout its lifetime, not least a continuing shortage of cash. (BBC, 1998). In January 2000, two decades of relative resource constraint on the NHS were ended by the commitment to raise UK health expenditure to the European average. After that commitment there were two ambitious reform plans (The NHS Plan, 2000; Wanless 2002) together with an expressed preference for the UK's unique tax-based system (Wanless 2001). The 2002 Budget raised national insurance contributions to fund a real increase of 43% in NHS spending by 2007-8, thereby raising health expenditure from 6.8% to 9.4% of GDP.
For all organisations financing their operations is a prime concern. ...Show more