The article discusses and describes how healthcare reform from 2007 in Denmark has influenced the health sector. This reform has been labelled the most radical reform of the political administrative system since the first democratic constitution in 1849. Local government reform is the latest step in a process of reforming the welfare state and the health sector. In more concrete terms this article analyzes two key issues that have had top priority in the first period of reform implementation - the new planning of hospital structure and the first generation of health agreements.