To what extent is the centrally planned system of running the NHS effective in its allocation of resources? (12 marks)

However, the disadvantages of a centrally planned economy/system are many. For example, within a planned system, not all resources will be utilized, as the planners will not be able to detect all the wants and needs of the populace, and therefore cannot supply them efficiently. An example of this would be in the Soviet Union, where people would queue for hours to buy basics such as bread. Another disadvantage is that by using a planned economy, it leads to planners favouring one line of production over another, and this in turn means another sector will be neglected. They cannot possibly prioritise and determine which goods are needed better than the market can.

In terms of the NHS specifically, it is run by the Department of Health, which in turn oversees 10 Strategic Health Authorities, these run all the NHS operations in their respective areas. Nearly all the staff is employed directly by the NHS itself, but professions such as GPs and dentists are not employees of the NHS, but instead contract themselves out.

All the above advantages and disadvantages of the centrally planned economies still applies to the NHS, but on a smaller scale. An article from the Guardian says that:  

“The centrally planned economy announces its presence with the steady thud of external demands landing on managerial desks. Its appetite for data - relevant or irrelevant - is legendary.”

The NHS frequently comes under criticism, for things such as lack of health and safety within the hospitals themselves (the superbug outbreaks), and the extremely long waiting lists which some patients are subjected to. It seems to many people that the NHS now has far too much paperwork involved, and the focus is now switching away from the care of the patients.

The control that the Department of Health has over the Strategic Health Authorities, and as the NHS as a whole is in itself undermined by the fact that there are smaller departments for each area. This chain of command means that orders given from the Department of Health may not filter down correctly to the Strategic Health Authorities and the hospitals themselves. The centrally planned system of the NHS is no longer “centrally planned” when they create smaller departments for different areas. In this way, resources are no longer used to their full capability, and that it no longer works efficiently.

However, many would argue that the NHS is one of the greatest successes of the United Kingdom, and that other countries should follow in its steps, such as the USA. It treats roughly 1 million patients every 36 hours, providing free treatment for any who come to it for help. Considering the size of the NHS and what it has to achieve, some would say that it is effective in its allocation of resources.

In conclusion, while the NHS does have its fair share of criticisms, I believe that to call it a centrally planned system is not fully correct, but that considering the size and scale of what is asked of it, and what it has achieved so far, it is very effective in the allocation of the available resources.