Relying on private sector providers to move towards universal health coverage remains contentious in many Low- and Middle-Income settings. Supporters of private care provision argue that competitive pressures make private providers more responsive. Yet there is little empirical evidence supporting these claims, or showing that the demand for care is responsive to quality of care, a pre-condition for an efficient competitive market. These issues are at the heart of current policy proposals in South Africa, where the government seeks to expand access to high quality primary care services by contracting private providers. This study will undertake an empirical analysis of the market for primary care services in a large urban township. By describing the market structure, the conduct of providers through differentiation strategies, and the key determinants of the demand for healthcare, we will aim to provide robust and innovative evidence that will lay out the grounds for designing future regulatory and purchasing arrangements with the private sector.