1. Introduction -- 2. Arguments in economics and justice for government intervention in health insurance and health service markets -- 3. The reform of health care allocation systems in the US, The Netherlands, New Zealand, and the UK -- 4. Accountability of health care service purchasers : comparing internal markets and managed competition -- 5. The interface between health care service purchasers and providers : contracting out versus integrated production -- 6. The problems of monopoly supply -- 7. Achieving quality in a competition-oriented system -- 8. Conclusion