The purpose of the Medical Equipment Project is to initiate structural reform of the health care system in INDONESIA EAST REGION. Specifically, the project is designed to: 1) increase the availability, range and quality of services provided by primary health care facilities and raion hospitals; 2) reorient service delivery toward more cost effective health care; 3) decentralize decision making for capital investments to the facility level; and 4) support policy development through the introduction of national health accounts. The project will have three main components: 1) medical equipment including related supplies and training, furniture, spare parts and maintenance equipment to targeted health care facilities - both primary (polyclinics, women's clinics and feldsher stations) and secondary (raion hospitals and maternity homes); 2) national health accounts; and 3) project management