This report identifies criticalopportunities and constraints faced by the Vanuatu healthsystem as it makes progress toward universal health coverage(UHC). Protecting the achievements that have been made overrecent years, while continuing to improve a broader range ofhealth outcomes, requires effective management of changes infinancial and other institutional arrangements in the healthsector. This health financing systems assessment (HFSA)provides context and emphasizes key issues and messagesaimed at providing Ministry of Health (MoH) and partnerswith a platform to help with this transition. It builds uponother work that has been done in recent years on health inVanuatu. The assessment begins with an overview of theprevailing economic and fiscal context and key healthoutcomes. It then overviews the country’s health system -through its human, physical, and financial dimensions.Finally, it reviews health financing in some detail toidentify trends across time; against regional benchmarks;and at both national and subnational and facility levels.The assessment concludes with a summary of policy options.