A survey of all district health authorities in England was conducted i
n order to describe current patterns of needs assessment and contract
setting for palliative care services, Outcome measures included the co
mpletion of needs assessments in the past five years, the type of data
used for needs assessment, and recommendations for service developmen
t, Copies of contracts for palliative care services were requested and
analysed according to duration of contract, and audit requirements. A
74% response rate was achieved. Over half the health authorities had
not carried out a needs assessment or service review of palliative car
e services in the past five years. Of those that had undertaken needs
assessment, about one-quarter were planning more review work, and most
of the reports expressed the need for more information on many aspect
s of palliative care. Copies of contracts with specialist palliative c
are providers were supplied by 38 health authorities, with the majorit
y being of only one year's duration. Although conducted within an Engl
ish context, the study findings have wider implications for the proces
s of effective health care purchasing.