The Navajo Health Authority (NHA) was created by the Navajo Tribal Council to guide and assist the Navajo people to improve their health and well-being. Its goals are to: (1) develop health manpower training programs appropriate to support the development of the American Indian Medical School and to meet the needs of the American Indians in staffing their health care systems; and (2) foster, guide and assist in the planning, development, cooperation and evaluation of a health service system for the Navajo people which will be exemplary and a model for the American Indian community. During the past year, NHA secured a land site at Shiprock, New Mexico, for the American Indian School of Medicine; organized a Governmental Liaison Committee, with representation from all the major, health-related departments of the Federal government; initiated a Family Practice Health Center and Residency Training Program at Shiprock; and prepared the draft legislation for the establishment and funding of the American Indian School of Medicine. This annual report presents data on NHA's progress. Topics covered are: legislative and community liaisons, the Joint Interagency Liaison Committee, the Medical School Planning Committee, administration and support services, Office of Student Affairs, Native Healing Sciences, preventive medicine, family and community medicine, health education, nursing office, emergency medical services, and health statistics and research. (NQ)