Full financial power over MOPH facilities was not transferred to the NHSO until fiscal
year 2007 (October 2006–September 2007). During the previous three years
the NHSO had contracted with the MOPH rather than with MOPH service units,
as had been required by the National Health Security Act. Ministry conservatives
argued that this arrangement was necessary to smooth the transitional period.
However, this gave anti-reformists more time to resist the change and allowed
Ministry executives to introduce financing changes that weakened the impact
of capitation funding. The MOPH steered the new system through the initial
implementation phase and was instrumental in modifying some aspects of the
evolving UCS. Yet the Ministry was unable to halt the loss of its financial power,
and evolved (reluctantly) from overall system manager to become the manager
of a network of major MOPH providers under the UCS, as well as continuing to
perform other stewardship functions such as setting rules and regulations and
health-system oversight.