Fundholding: the next five years.

On 1 April 1993 third-wave fundholders (second-wave fundholders in Scotland) received their budgets. In some areas, over 50 per cent of the population are now served by fundholding practices. This paper examines the limited evidence to date on the effects of fundholding. Four areas of concern are identified: priority setting by fundholders; the management of financial risk; budget setting; and the allocation of resources between fundholders and non-fundholders. In each of these areas, ways in which the scheme might be improved are discussed.