This paper examines health system reform in Mongolia. It concludes that Mongolia’s health system is in disarray, but not for lack of money.The traditional approach to increase funding to the health sector will not significantly improve the health system in Mongolia as it is already absorbing close to six percent of GDP, which is higher than in most transition countries. Therefore, it is more logical to improve the operating efficiency of the system, such that the same outcomes could be achieved with smaller
expenditures.