© 2002 American Public Health Association
The authors are with the University of Pittsburgh, Pittsburgh, Pa. Christopher Keane and Edmund Ricci are with the Graduate School of Public Health. John Marx is with the Department of Sociology and the Graduate School of Public Health. Correspondence: Requests for reprints should be sent to Christopher Keane, ScD, 211 Parran Hall, 130 DesSoto St, Pittsburgh, PA 15261 (e-mail: crkcity{at}pitt.edu).
Privatization of public health is seemingly an oxymoron. Functions such as environmental regulation and communicable disease control would seem to be the unique purview of governmental public health departments. These services constitute public goods in that they affect entire communities, whereas personal health services are private goods, privately consumed by individuals.1 Recent pressures such as the penetration of managed care has led to shifts in personal health service provision from the public to the private sector and to various forms of publicprivate collaboration.2,3 However, some privatization theorists contend that public goods cannot be as effectively provided by the private sector. Others contend that even certain private goods, such as personal health services, should not be contracted out to the private sector.1 These opinions suggest that research on privatization in local health departments should examine the specific services, both public and private, that have been contracted out, a task previous studies of such health departments have not systematically addressed (L. Whitehand, M. Bechamps, and R. Bialek, unpublished data, 1997).415 Other articles based on the national survey of local health department directors described here have not outlined in detail the specific services privatized.16 In the present study, we examined the specific services privatized, the profit vs nonprofit status of contractors, and directors views about what services should not be privatized.
Our methods were described in a previous article.16 We drew a stratified random sample of 380 local health departments from the 2488 departments included in the database of the National Association of County and City Health Officials. During 19981999, we interviewed 347 local health department directors (a 91.3% response rate). Directors described in detail the specific services privatized, that is, contracted out or in some way delegated to nongovernmental organizations.
Specific Services Privatized The most commonly privatized personal health service categories were primary care (28%) and communicable disease (27%). Among local health departments serving jurisdictions of at least 350 000, more than two thirds (70% ) had contracted out certain primary care services (Table 1
Nineteen percent of local health departments had privatized chronic disease testing and treatment. Personal health service laboratory work and home health care were contracted out by 21% and 22% of all departments, respectively. Substance abuse services were most commonly contracted out in departments with jurisdictions of at least 350 000 (32%). At least 1 health education service was privatized in 27% of departments. The most common data function contracted out was health assessment, usually on a short-term basis. The total percentage of local health departments that had privatized at least 1 environmental service was 24%.16 More than half of all privatized services were contracted to for-profit organizations. Laboratory work, associated with either personal or environmental services, was almost always contracted out to for-profit organizations. Finally, in the case of many of the environmental services privatized (e.g., water or septic services), the majority of contractors were for-profit organizations.
Services That Should Not Be Privatized
Many directors stated that regulatory or enforcement functions should not be privatized because local health departments must not relinquish control. Directors were most averse to privatizing services that are part of health departments capacity to respond to disease outbreaks and to carry out enforcement functions. They worried that privatization would undermine departments control over services and functions, hindering their ability to respond to crises. Finally, whereas roughly a tenth of the directors stated that no service should be privatized, another tenth believed (usually with caveats) that any service could be privatized.
Services That Should Not Be Contracted to For-Profit Organizations
The nations local health departments have traditionally been responsible for disease control activities and for maintaining the capacity to respond effectively to sudden, often unpredictable threats to the health of the public, functions not historically performed by the private sector. Many of the local health department directors surveyed here were concerned that privatization would weaken health departments capacity to respond to crises. They were also concerned that privatization would diminish health departments control over performance or reduce the professional public health skill base. In view of these concerns, it is surprising that so many local health departments have privatized services such as those involving communicable disease (27%) and environmental health (24%), services that clearly qualify as public goods.1 These findings warrant further research examining the processes and outcomes of privatization of specific public health services.
This research was funded by the Centers for Disease Control and Prevention through a cooperative agreement with the Association of Schools of Public Health. We are very grateful to Gerald Barron, deputy director of the Allegheny County Health Department, for his advice and suggestions and for arranging the pilot testing of the instrument. We also thank staff of the National Association of City and County Health Officials for their support and advice. Finally, we thank Kim Teitelbaum and Robert Harper for excellence in data collection.
Human Participant Protection
C. Keane developed the framework, study questions, and methods; drafted the questionnaire; designed and supervised data collection; analyzed the data; and wrote initial drafts of the brief. J. Marx worked on the study design, edited the questionnaire, and edited the brief. E. Ricci secured initial funding and edited the brief. Accepted for publication December 7, 2001.
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