The specific aim of this proposed economic research is to evaluate the effectiveness of two alternative strategies for providing adequate access to ambulatory-care services for low-income persons living in medically underserved areas. One of these strategies is the direct delivery approach as manifested in the BCHS projects. The other strategy is the financing approach as manifested in the Medicaid program. This study will be conducted within the context of multivariate utilization models that control for a variety of determinants of health services utilization. The data for this study will be derived from two recent surveys of individuals: (1) the 1976 Health Interview Survey and (2) the 1976 Bureau of Community Health Services Household Survey. Both surveys provide detailed information on health services utilization, health status, and socioeconomic characteristics of thousands of individuals. The proposed research will result in a report containing an executive summary, a discussion of detailed findings, methods, and policy implications, and appendices for variable definitions and the specific econometric estimates of the utilization equations.