Health systems in developing countries are typically composed of a hierarchical referral structure of health facilities from the village health worker to the national hospital. Parallel to this service structure there is an administrative structure with a corresponding body on each level, ranging from the district administration to the ministry of health. Note that this is a generic model: the number of intermediary levels between the districts and the national level can vary depending from one country to another.

Along these structures there exists a reporting system with upward reporting, local analysis and feedback of data to the reporting facilities. On each level the data are being compiled, and the aggregate is being sent to the next higher level. Each administrational body forms therefor an aggregational node in the reporting network. A SAPHMIS should ideally support each of the aggregational nodes of this reporting system.