There are three models of health care delivery and financing: the market model, the professional model, and the bureaucracy-dominated model. The Hospital Authority in Hong Kong is essentially a professional model, but it is supplemented by the bureaucracy-dominated model (the Department of Health) and private suppliers. The Harvard consultants see such a system as fragmented and inefficient but their proposals place too much emphasis on the market and have ignored the peculiar nature of the health care market. Although some of the principles that they espouse, such as protection against excessive burden and prevention of moral hazard, are good and important, failing to address the incentive problems has rendered their proposals impractical, costly, and even inequitable.
Ho, L. S. (1999).Health care delivery and financing: In search of an ideal model - reflections on the Harvard Report (CPPS Working Paper Series No.95). Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/48/