Health is an important component of human development. A healthy and well-trained workforce attracts investments and spurs economic progress. For this reason, countries need to ensure that its health system provides adequate services to its population. Where the system relies on public and private providers, there must be effective synergy between the two sectors. In the case of the Philippines where inequity has been a major concern in health outcomes and service provision, policy makers face the following challenges: (1) reduce the discrepancy in the access to healthcare services among its socioeconomic classes; (2) reduce the discrepancy in the quality of health services between the public and private sectors; (3) increase the availability of services to geographically isolated and depressed areas; and (4) reduce out-of-pocket expenditures as a percentage of total health expenditure.