Abstract: A logit model is used to estimate provider choice from six types by malaria patients in rural Nepal. Patient characteristics that influence choice include travel costs, income category, household size, gender, and type and severity of malaria. Income effects are introduced by assuming the marginal utility of money is a step function of expenditures on the numeraire.This method of incorporating income effects is ideally suited for situations when exact income data is not available. Significant provider characteristics include wait time for treatment and wait time for laboratory results. Household willingness to pay is estimated for increasing the number of providers, providing more sites with blood testing capabilities, and initiating drug charges with and without improvements in health care. Willingness to pay estimates vary significantly across households and allow one to assess how much different households would benefit or lose under different government proposals. They also indicate whether the proposals pass the benefit-cost test.