There is growing interest in the application of citizen participation within all areas of public sector service development, where it is increasingly promoted as a significant strand of post‐neoliberal policy concerned with re‐imagining citizenship and more participatory forms of citizen/consumer engagement. The application of such a perspective within health services, via co‐production, has both beneficial, but also problematic implications for the organisation of such services, for professional practice and education. Given the disappointing results in increasing consumer involvement in health services via ‘choice’ and ‘voice’ participation strategies, the question of how the more challenging approach of co‐production will fare needs to be addressed. The article discusses the possibilities and challenges of system‐wide co‐production for health. It identifies the discourse and practice contours of co‐production, differentiating co‐production from other health consumer‐led approaches. Finally, it identifies issues critically related to the successful implementation of co‐production where additional theorisation and research are required.