Saraspur PHC, under the control of the District Health Officer (DHO), was showing poor performance in all programmes. Moreover, its performance was deteriorating every month. This surprised the DHO, for so far Saraspur had registered average performance. Recently, it had been taken over by the regional training centre as a demonstration PHC. The DHO investigated the poor performance and found that the PHC was facing several problems. Family planning work had suffered because of a tubectomy death. Because the training centre had taken charge of the PHC, the workers were busy preparing new registers for MCH work; besides, they had not received medicines for the last two years. There were salary delays, and payments to the workers of TA/DA had been held up. The training centre staff had no experience in handling workers. Confusion existed over the demarcation of functions and control over the PHC, between the training centre and the PHC officials.