The relationship between patients and physicians can be regarded as principles and agents. Physician agency theory has been used to study physician behaviors in health economics and management. The contracted family physician services regulate the principle-agent relationship between patients and physicians using a formal contract. The utility of family physicians depends on their income and the total health of the contracted patients,which in turn depend on the quantity and quality of the services provided by the family physician. This paper analyzed the behavior of family physician in the process of contracted services with the physician agency theory,and discussed the development strategy from the perspective of healthcare providers,including promoting the capitation payment reform in primary care,implementing the system of charging a fee for contracted services,improving the performance income of family physician,and linking with the quality of patient service.