The Role of Performance Management and Control Systems in Public‐Sector Reform: Victorian Health Care Networks

This paper examines the way organisational responses to public‐sector reform initiatives shape the nature and extent of achievable outcomes. The mandated creation of multi‐hospital networks in Victoria is used as a representative example of amalgamation initiatives observed in both the private and public sectors. This study explores the extent to which performance management and control system choices made by two hospital networks enhance or stymie the achievement of intended amalgamation objectives. The study indicates that the evaluation of amalgamation and other public policy initiatives at a sector level cannot be made independently of the discretion left to management regarding means of implementing these initiatives.