Alternative Delivery Systems for Public Services in Hong Kong: The Hospital Authority vs The Housing Authority

This article assesses the performance of two public corporations in Hong Kong : the Hospital Authority and the Housing Authority. The context and institutional arrangements of the two public bodies are reviewed, and their performance are assessed in terms of cost, efficiency, quality and equity. The findings suggest that the arrangement whereby a government department provides executive support to a corporate body is ineffective and problematic. This study also reveals that corporatization without competition has, at best brought about some improvement in quality in areas where they are easily noticeable or measurable. While no equity principles have been compromised under corporatization, these corporatized entities do not appear to have succeeded in lowering costs or achieving greater efficiency.