To improve the financial viability and quality of health care in public hospitals, the Andhra Pradesh government initiated a series of reforms. However, because of lack of resources, there has been stagnation in the size and decline in the quality of public health care. The state's patronage of the private sector in health care has been justified on the ground that it would ease the pressure on government hospitals. But in reality private hospitals are replacing rather than complementing public hospitals by weaning away resources from government hospitals.