This paper describes the evaluation of a case study of health service reform in southern Adelaide. A mail survey, interviews and focus groups were used to gain an understanding of health care providers' perceptions and experiences of reform. The paper discusses lessons learnt about health service reform and its impact on people working in the health system. It finds that continual change that is not based on a well-articulated vision is likely to lead to 'reform fatigue' and low morale. An action research approach can be used by researchers to help managers and staff understanding the context in which reform is happening, and thus give support to organisational learning.