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The French hospital system is in a state of crisis, its woes not much different from what Canadian hospitals experience. In the fall of 2002, the French Minister of Health announced a major reform called Hospital 2007, and initiated a wide-ranging consultation of all stakeholders. Although these consultations resulted in some minor changes to the plan, the basic principles of the reform have remained. Their implementation has begun and will continue for the next five years. Some aspects of this reform allow us to make interesting comparisons with the Canadian situation.