With the donor funding reductions and challenging economic times, many countries have found themselves in a challenging situation on what gets funded and how to finance their health system. Mobilizing additional domestic funding for health in Low- and Middle-Income Countries (LMICs) is challenged by highly informal economies, narrow tax bases, which constrains revenue collection, increasing debt, and limited fiscal space. Almost all LMICs are strategizing how to close funding gaps caused by reduced funding for health and how strategic purchasing approaches such as government-led contracting with the private sector can play an important role by offsetting challenges and augmenting both service delivery and financing in LMICs. Contracting has the potential to make the health system more efficient through delivering better value (higher quality care at lower or more efficient costs) achieving more health for the money.