Since the mid-1990’s, Norway has implemented a series of reforms with the objective of improving health care quality and responsiveness. Reforms have increased the quantity of services supplied and improved their quality in both primary and specialised care. Waiting times are being reduced. Efficiency of public hospitals has improved. The availability of pharmacies has risen. Human resource shortages are not a major matter of concern anymore. The cost of health services delivery, however, has risen faster than expected. The current financing system falls short of aligning incentives of health care providers and patients with social objectives. Downward pressure on prices and costs from greater competition is a missed opportunity in the hospital and pharmaceutical sectors.