New Public Management in the French Health System: An

Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
New Public Management in the French Health System: An
Assessment and Critical Evaluation
Daniel Simonet
The French crafted their version of New Public
Management (NPM) in health care. They used the
Diagnostic-Related-Group accounting to implement
radical organizational changes, including quasimarkets and public private partnerships. However,
key NPM components such as decentralization were
rejected: the 2009 hôpital-Patients-Santé-Territoires
(Hospital-Patient-Health-Territory) Act led to a reconcentration of power at the central level to the
detriment of regional administrative authority.
Though NPM impact on health care has yet to
evaluated in full, it had unexpected outcomes. For
instance, it favored the private - rather than publichospital sector. In spite of the fact that NPM put the
emphasis on accountability and transparency, and
hence has the potential to combat fraud, the later
has remained high.
Field of Research: Social Sciences
Key Words: New public management, France, hospitals, DRGs, Centralization
Associate Professor of Public Administration, School of Business and Management, American University
of Sharjah, UAE. Email: