Building health systems that are responsive to community needs particularly for the poor is essential. In view of the growing divergence both between and within the states, disaggregated studies are necessary for identification of the critical areas calling for policy intervention. In this connection, the article is an attempt to analyse the performance of healthcare system of Andhra Pradesh (AP) at district level by focusing on technical efficiency. The study is based on secondary data. Stochastic frontier model has been used for analysis. The results show that the efficiency of the public health delivery system remains low. Not all the districts with lower infant mortality rate (IMR) have efficient health systems. The disparities across districts in terms of availability of hospitals and primary health centres have an adverse impact on improving IMR in AP. Overcoming these disparities within the health system may lead to improvement of public health system at district level in AP. Further, reduction in IMR may be possible at a faster pace in the state if such efforts are coupled with steps to promote literacy particularly female literacy. This could make them empowered to demand for adequate health infrastructure and ensure better utilization of it in poorly performing districts.