Abstract
This paper describes the impact of market liberalism on public hospitals and universities in Australia. A model is developed to provide a systematic way of taking stock of current developments. Following this, the paper explores the forms of governance to which Australian public hospitals and universities are now subject. Drawing from the empirical evidence, three forms of governance are suggested: behavioural, regulatory‐calculative and coercive. The parallels and differences between this proposal and Foucault's (1991) distinction between sovereignty, discipline and governance are noted. Finally the paper asks whether official interventions have increased as well as changed.

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