The World Health Assembly resolution 2003, recognized the potential of “contracting” to improve health system performance. However, contracting if poorly planned and executed also has inherent risks. India is also actively involved on the issue of contracting therefore, the health planners have to pay due attention on the emerging issues and latest trends on contracting health services. The magnitude of inputs required in health systems are enormous. It may not be possible, even in most developed countries to render medical care to whole community free of cost and by one actor, whether public or private. The one viable alternative can be a joint effort both by public and private. The participation may be at the level of provision of inputs in respect of manpower, materials and supply chain management, funding etc. or at the level of management process in rendering the care. It is also true that there is definite risk with the contracting system as well. This risk can be reduced to some extent by performance based contracts, where payments to the contractor depends at least partially on the achievement of the particular outcome.

This brief report is based on articles published in the special thematic issue of Bulletin of the WHO, Nov. 2006, 84(11) on ‘‘Contracting and Health Services’’    

Editor-JAHA