The private sector plays a significant role in the provision of healthcare in Myanmar, where out-of-pocket spending on health is over 70%. At the request of the Ministry of Health and Sports, PSI introduced a pilot to show how strategic purchasing can improve health and family planning outcomes for low-income clients in two peri-urban townships of Yangon. PSI contracted five private Sun Quality Health clinics to provide a defined primary health package to a total of 2,506 low income households, using a fixed monthly capitation payment. Over 80% of selected beneficiaries came from the lowest two socio-economic quintiles in the targeted communities and make a small co-payment contribution. The research aimed to evaluate whether out-of-pocket expenditure (OOPE) went down when they sought healthcare or family planning from these clinics. This pilot is one of a series of pilots testing whether providers outside of the public sector can be contracted to deliver a package of essential health services, in order to inform the national Health Plan (2017-2021).