The problem with public service "choice"
Choice without the capability to exercise drives a pernicious wedge between some users and others.
By Prateek Buch Published 04 April 2012 17:35
"Brick by brick, edifice by edifice, we are slowly dismantling the big-state" says Prime Minister David Cameron. In its place will be, if not the much-maligned "big society", then, well what exactly? If Tony Blair’s mantra going into the 1997 General Election was "education, education, education," Cameron’s fixation can be summed up as "choice, choice, choice."
In criticising Cameron’s choice of strategy to raise standards in schools, hospitals and other public services, I don’t intend to defend the status quo. Of course there’s significant room for improvement, there always is. Nor do I seek to deny that in some cases non-state providers may be able to augment state provision where the latter is clearly failing. But in striving to raise standards we must ask whether the reforms being brought in are the right reforms, whether they’re likely to deliver said higher standards, and if so for whom.
In launching the next phase of the government’s Open Public Services programme, the PM asserts that in giving service users a choice between providers will give them control over how they experience the service and give the providers competitive pressure to up their game. The trouble is, this assertion is just that; there is very little evidence that choice and competition in themselves lead to higher standards in public services, and what little evidence that exists is of remarkably poor quality.
For every unpublished, non-peer-reviewed study that claims to show how choice and competition raise standards, you can find many rebuttals that expose methodological and empirical flaws. Take the now infamous studies claiming that competition for elective surgery (indexed not by a measure of choice itself but by geographic density of hospitals, a poor proxy at best) improves outcomes in mortality from heart attacks (through an unspecified mechanism); the papers show weak statistical correlations at best, not a causal relationship, and yet they’re unquestioningly cited as evidence that “hospitals in more competitive areas perform better on quality and efficiency than those in less competitive ones.”
The standard practice for resolving such a lack of clarity as to whether X (in this case the existence of patient choice in where they’re treated) causes Y (higher standards of care) would be to conduct a trial: give some patients choice, measure (and this is crucial) whether they actually exercise said choice, and see whether their medical outcomes are better than a group of patients from whom choice is withheld. I’m not the first to call for well-controlled trials of social policy (doctor and health writer Ben Goldacre is amongst those who have), but in the absence of reliable evidence to date, surely there ought to be trials to show just how effective choice can be in driving up standards?
Cameron makes more than an empirical error in promoting choice, however; his “instinctive belief” (sic) that consumers – or citizens as we used to be called – exercising choice in an open market will drive up performance and productivity results from a confused view of what constitutes a public service in the first place. The confusion is laid bare in Benedict Brogan’s defence of the Tory perspective on public service reform; Brogan reveals more than he perhaps intended when he says that under the proposed system of choice in services, the consumer "will be given the same kind of protections in his dealings with the public sector that he enjoys when he buys a television set or books a holiday."
With great power comes great responsibility, Peter Parker was told; well, under the Open Public Services regime, with Great Choice comes Great Voice – the corollary to choice of provider is voice to complain, transparency of data and help in finding out how to raise your voice, so to speak. All good things in themselves and fine if you’re buying a TV or booking a holiday, a robust complaints procedure might make TV makers or airlines up their game – but outcomes from public services are often only apparent several years down the line (think schools and healthcare for chronic conditions), at which point it’s too late for a complaint to the market regulator to make a difference. If the government is indeed to become more a commissioner in a market than a provider, as is Cameron’s intention, then if voice alone is the consumer’s redress then we must accept a widening in outcomes for those able to exercise both choice and voice, and those who are less capable.
And that’s the key. It’s a crass philosophical mistake to conflate public services – that deliver public good by pooling peoples’ risk, purchasing power and the benefits they get in ways that enrich society as a whole – with transactional goods that we consume largely for our own individual benefit. Cameron remains convinced that choice is the way to promote better services – but choice without the capability to exercise it is just a pernicious wedge driven between those comfortable enough to travel large distances and research their options and those who need good public services local to them. Choice, choice, choice says the PM – excellence, equity, evidence, say I.
Prateek Buch is head of policy and research for the Social Liberal Forum
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8 comments
You write that it’s a mistake to mix public services delivering a public good with one-off things we buy.
A private anything is built on the idea that there are limitless resources.
The choice between public transport and having your own car is a good example. It seemed like a very good idea for everyone to have their own car, but now we have ended up with global warming as a consequence. Suddenly public transport makes a lot of sense and the time is coming when we will all realise that we have no choice because there is no alternative. The NHS was a collective national act of unselfishness, born out of the second world war. The real war we are now facing is not the corporates or terrorism: when nature asserts itself, the bit of space we live in, perched precariously on the surface of this planet, with a few miles high of breathable oxygen, will be stuffed. Get used to it.
The NHS is just one example of the collectively stupid decisions we are making right now. Education and health are not like toasters. George Orwell's "A Clerygman's Daughter" is an interesting study of what purchasing power can do to education - you buy what you like, not what you need. Private health industry will be required to prioritise profit above the public good - HRT and PIP implants are examples. The profit motive does funny things to our judgment. We always defend our provider.
Currently the money markets are betting on the price of food and that will push the price of food stuffs up. The money markets distort behaviour, that much is clear. Perhaps Voltaire was right: "il faut cultiver son jardin".
If something doesn't make any sense, then we need to ask what might we be being distracted from seeing? Who will benefit? Where is the money going?
The 94 GATS treaty, WTO, IMF, G20 and all the other global organisations were all designed to enforce trade liberalisation. A major criticism by the US in 94 was that their private health corporations had no access to the public provision across the UK and US. It was understood that opening up of the popular public services would only be possible if done very gradually, so that the public did not notice. We are now in the end game of that process. The Tories have gone for broke in that they had a ready excuse in being able (falsely) to blame the global banking crisis on the previous Labour government's overspending (http://think-left.org/2011/12/21/gordon-brown-did-not-spend-all-the-mone...). The Tories also do not anticipate being re-elected in 2015, so locking in 30y contracts, protected by WTO rules, has to done now or never (http://think-left.org/2012/03/05/transnational-corporations-have-not-let...)
The narratives about choice or the Big society are really not the issue. The problem we face is the pincer action of the financial markets and the transnationals, with politicians who are the agents, and beneficiaries, of the super-rich plutocrats. This is back to the future neofeudalism.
The argument seems to be that we have to prevent people from getting choice in the name of equality. We can't make the poor better off, but at least we can prevent higher income people from getting good services.
Essentially, "what Dark Heart of Toryland said."
I am not suggesting that those who wish or are able to seek services from private providers should be banned from doing so, simply that when services are provided on a public footing for the vast majority of those who can't, the expansion of choice acts against the principle of equity and is unlikely to raise standards evenly.
No, the argument is that meaningful 'choice' is not actually being offered to anyone, and that there is very little empirical evidence that the provision of 'choice' actually does anything to 'drive up standards'. Anyway, it is very difficult for the 'consumer' to exercise 'choice' in public services, because health and education are not readily amenable to the exercise of 'consumer choice'. After all, if you chose badly when buying a TV, it doesn't matter; on the other hand chosing badly in health or education - or having one's choice limited by lack of resources - can have life altering consequences.
Nor does the piece argue that higher income people should be prevented from getting 'good services' (by which I assume you mean expensive private services); nowhere is it suggested that private provision should be banned.
Prateek,
You have well and truly nailed it! This is a hugely important debate and one that we need to have publicly before it is too late. One issue you haven't mentioned is that choice is often a middle class prerogative - I can choose my children's school if I can afford/provide the transport to get there, or buy a house in the catchment area. I can choose my hospital if I can get there. My local authority may give me no choice in who fills my potholes and empties my bins or feeds my children when they are in the school I choose for them. This is a calamity waiting to happen - I fear when we wake up to the fact that we are all paying more for worse services it will be far too late to turn the tide.
Prateek,
You have well and truly nailed it! This is a hugely important debate and one that we need to have publicly before it is too late. One issue you haven't mentioned is that choice is often a middle class prerogative - I can choose my children's school if I can afford/provide the transport to get there, or buy a house in the catchment area. I can choose my hospital if I can get there. My local authority may give me no choice in who fills my potholes and empties my bins or feeds my children when they are in the school I choose for them. This is a calamity waiting to happen - I fear when we wake up to the fact that we are all paying more for worse services it will be far too late to turn the tide.
agreed - although I didn't explicity mention the middle-class issue, I hope I made clear that choice is only really effective for those who have the capability to exercise it, which often maps onto class and income.