ABSTRACT
Problems of resource allocation in the many health systems throughout the world are increasingly urgent. Although some argue that the problem is not one of limited resources but of misallocation of resources that would be sufficient if properly used. Most writers agree that there are insufficient resources available to meet demand, requiring action to allocate limited resources. Extensive debate among ethicists, economists, and policy-makers is devoted to determining effective, efficient and equitable methods of allocating limited resources in response to potentially unlimited demand. This paper outlines the problem of resource allocation and examines a recent Australian case in light of the complex problems raised by the need to contain health care costs in a mixed public and private health care system. Legal tensions are created by the possibility that resource constraints may affect the physician's role in caring for the patient, with possible consequences in negligence.