Introduction: Due to resource limitations in health sector, optimal utilization of resources Which Commonly accounts for 50 to 80 percent of government's expenditure in health sector is one of the objectives of decision makers in hospitals, By and large hospitals have the most highly trained health personnel, therefore it necessitate to consider the cost effectiveness of health care industry in hospitals, and the appropriateness of policies in order to boost productivity.

Methods: This was a cross sectional study conducted in 3 hospitals (Firoozgar, Firoozabadi, Shohade- Hafte-Tir and Ali Asghar) in 1381. For the Purpose of data collection, information sheets were used. The information was then converted in to meaningful indexes to facilitate analyses.

Findings: On the bases of research findings, performance indexes in hospitals under study were far from the designated performances envisioned by the third development plan of the health ministry (P<0.05). In a way that in the third development plan hospital bed occupency must be 70%, average length of stay 4.2 days, bed turnovel, 67 times, and the average bed occupancy internal was determined to be 2.3 days. Yet indexes in hospitals under study on the average were 57%, 6 days, 31 times, and 4.5 days respeetably. The cost of bed occupancy with assumed epical costs in selected hospitals was 713000 Rials daily. High rates of bed costs occopancy, the average length of stay the average interval of stay, the low index bed occopancy and bed turnovers in hospitals under study inefficiency and ineffectiveness was an indication of use of hospital resources. Firoozabadi hospital scored higher in performance in exes and Firozgar hospital in bed occupancy costs among hospitals under study.

Results: Because of the high rate of bed occupancy cost and ineffaceability in performance indexes, low efficiency and effectibility, administrators and decision makers had better try to identify the important elements in rising costs and reduced ward efficiency in hospitals and come up with plan to boost productivity.