ABSTRACT
“The hospital is one of the original creations of Western Christian medieval towns. The etymology of the word hospital is illuminating, not only from a historical perspective, but also as regards the modern concept of hospitals. Privatization of the public sector is the most radical solution. The State, aware of its own inefficiency, lets the for-profit or not for-profit private sector, expand into the provision of health services. The strategic approach will mirror that used for hospital development. The existence of a formal strategic plan will make it easier to identify contracting opportunities. Private hospital facilities exist in most countries. They are often the result of history and market opportunities. Internal contracting is conceivable in institutions that possess a basic information system for managing their activities, revenue and use of resources. Instituting a contracting process means seeing beyond the instrument, that is, the contract, and focusing on the whole issue of managing a hospital through contracting.
