A number of state governments claim to be providing medicines for free to consumers getting treated in public healthcare institutions. So, why is it that they still have to buy drugs from private sources? CUTS has endeavoured to find answers to this in the project entitled, Collusive Behaviour in Health Delivery in India: Need for Effective Regulation (referred to as COHED project, www.cuts-ccier.org/COHED). This report tries to identify feasible solutions and strategies for addressing concerns emanating from collusive practices in healthcare delivery in two states of Assam and Chhattisgarh and would form the basis for advocacy and ground actions in them. The ultimate goal is to contribute to the process of evolving consumer-friendly healthcare systems in these two and other states of the country.