ABSTRACT

This chapter analyses that the public expenditures were reduced after the implementation of reforms and examines the experience of the private sector. Was the objective of public cost containment reached? If so, was it done through volume or price control? Has the private sector benefited from these reforms? The chapter answers these questions by examining the evolution of public and private expenditures in each province, controlling for the evolution of price and volume. The use of price indices is an interesting means by which to separate the price effect from the quantity effect. The growth rate of price indices shows that prices in the private sector grew faster than in the public sector. Public management is also a means to invoke control measures, and to avoid the costs of swollen administrative structures, as is the case in health systems that give a greater place to the private sector.