Federal policies and contracts relating to Area Health Education Centers are examined. The evolution of federal programs in the health field is traced, including a discussion of the Carnegie Commission's special reports, the Comprehensive Health Manpower Training Act of 1971, and subsequent amendments to the Act. A detailed outline of the functions of these federal policies is included. A critique of 11 universities and their area health education centers is also presented. Site visits to each location are described. The services of the health education centers are assessed in reference to the recommendations of the Carnegie Commission that include: improved and increased health care services, minority representation in the health care field, cost effectiveness, and a more effective relationship of health care education to health care delivery. (SF)