Summary: One of the largest federal agencies, the Department of Health and Human Services (HHS) had budget outlays of nearly $340 billion and employed more than 57,000 individuals in fiscal year 1997. Its many missions affect the health and well being of nearly every American. HHS provides health insurance for about one in five Americans; conducts medical research to help cure and prevent diseases; ensures the safety of food, drugs, and medical devices; provides health care to persons who might otherwise have to do without; provides needy children and families with income support; and delivers a host of services to help the elderly remain independent. This testimony (1) discusses HHS' progress in strategic planning as envisioned by the Government Performance and Results Act and (2) highlights three underlying problems that have undermined HHS' effectiveness--coordinating and fixing accountability for the agency's 300 diverse programs; ensuring that it has the information systems it needs to manage and evaluate its programs and track its progress in meeting performance goals; and protecting programs vulnerable to waste, fraud, abuse, and mismanagement.