Abstract: The purpose of this study is to review the need based resource allocation to health care. It will shed light on the loop holes in the need based approaches for allocation of resources. In the first section need based approaches are defined. And then there is an explanation of their objective related to health care and what difficulties policy makers encounter while making policy. Then there is a review of the mechanism of current need based planning to allocate resources. And the last section defines what should be done to make a practical and efficient policy which solves the real-time problems of health care.