This study is the first comprehensiveanalysis of health care delivery in Nepal, and fills majorgaps on the knowledge of the country's health sector,expanding the understanding of current, and prospectivecauses of sickness and death, of the actual level ofexternal assistance in the sector, and of the level ofadditional resources needed to meet basic needs, and easeinstitutional constraints within health services. It issuggested that large projected increases in the populationwill place enormous pressure on the already strainedresources, while regional disparities in health indicators,and care are large, and under-served. Although policymakersshould still deal with infectious diseases, and relatedillnesses, special attention should be devoted to improvethe health status of children, and target the disadvantaged,and poorer areas. Furthermore, the study implies thatinstitutional weaknesses, and ineffective program managementare at the root of poor service delivery. Recommendationssuggest an increased political commitment, focusing oninfectious diseases, maternal, and prenatal ailments, andnutrition deficiencies. In addition, institutional capacityshould be developed, and better health care systems ensuredthrough public-private partnerships. Priorities should beestablished through careful planning, appropriatemanagement, and financial availability.