A detailed understanding of the structure and function of health systems is essential for health service managers. This unit explores the way health systems are designed and operate. It also examines several issues that influence how health services are delivered and resourced. There is a particular focus on the Australian health system, but within an international context. These issues are critically analysed, along with the health reform agenda and key drivers for change, nationally and internationally. This unit is relevant to health professionals seeking to lead and influence the future direction of health systems.