Abstract
The purpose of this article is to analyze the process of restructuring the Egyptian public health sector according to the new mode of governance principles and the concomitant dilemmas in the process. Based on an interpretative methodology, the findings of this research indicate that (a) despite some positive changes, serious doubts remain over the commercialization of basic public services; (b) confusions have emerged regarding the identity of public hospitals; (c) despite the introduction of the business management principles, the centralized hierarchical power of the state over the local governmental hospitals remains intact; (d) the new system has degraded the professional standards of medical practitioners and made them subservient to the whims of the financial management professionals; and (e) there have been some negative effects on equity.