The Philippines health sector is at acritical stage in its transformation. While the country hasundertaken several significant health sector reforms in thepast decades, a large unfinished policy agenda remains. Theachievement of the health Millennium Development Goals(MDGs), especially among poor households, is at risk andthere is a newly emerging challenge of addressingnon-communicable diseases MDG. The overall health spendingratio is one of the lowest in the region with out-of-pocket(OOP) spending, a measure of financial protection, at overhalf of all health spending, well above the average forglobal comparators. It is within this context, that thePhilippine health sector review takes stock of healthreforms implemented to date, and evaluates the impact ofthese reforms on health systems performance. Based on thisevaluation, the review identifies the challenges and futurepolicy directions for accelerating the transformation of thePhilippines health sector for improved health outcomes,financial protection of the population and consumer satisfaction.