Thank you David for this paper (David Ponka post 3 October).
Papers of this type have to be viewed in the context of other findings. Systematic reviews, which assess findings and quality of evidence in all available studies (within a defined range), offer the best resource for generalisations about the state of our knowledge.
This systematic review conducted by Canadian researchers in 2000 (HERE) found: “There is no published study of the efficiency (i.e. cost and quality) of the purchase of surgical services from private facilities by public funders, such as regional health authorities (RHAs). Although the popular perception may be that there is a lot of evidence on this issue […].”
Liu in 2007 (HERE) and Montague in 2011 (HERE) reported similar findings, though for a different range of services.
Note also that Liu points out that whilst contracting may in some circumstances lead to cost reductions, little is known about effects on quality and equity. Donaldson (the Canadian reviewer) points out that claims about cost are meaningless without this information.
These results are surprising given the importance attached to reform policies promoting wider private sector participation in health systems.