This chapter examines what is known about the behavior of the private health sector in India and how the government should intervene in the private sector. The analysis is based on an extensive review of the literature in India and in six of its major states. Focusing on contracting and regulation, the literature points out that the government has limited capacity to regulate private health providers and to monitor contracts. We present several examples in which government collaboration with the private sector has been shown to work or has the potential to work well: (a) cooperating in disease surveillance reporting, (b) contracting for environmental activities in cities, (c) contracting for nonclinical services in large hospitals, (d) collaborating on disseminating public health information, (e) sharing resources for managing drug supplies, and (f) establishing patient referral mechanisms for such procedures as obstetric complications or cataract operations. The government needs to pursue these types of collaboration because the private sector is already playing a dominant role in curative health care and because the government has an obligation to ensure health services are safe, high quality, and accountable to the public. The government must find ways to increase that access to health services and financial protection for the poor.