Introduction : Maintaining and providing the health care are of the proprieties of each health system. Therefore, those involved in health sector should always do their best to provide high quality services. Increasing the efficiency of health system is one of the issues emphasized by the policy-makers. This study was aimed to compare between Iran and the Selected Countries on the Efficiency of expenses in Health Sector by Data Envelopment Analysis (1998 -2008).

  Methods: In this applied descriptive study, the Data Envelopment Analysis (DEA) Method was used to determine the efficiency of Iranian health sector and the other selected countries (N: 40).

  Results: The findings revealed that the health sector in Iran had a technical efficiency of 77.2% during the period of 1998-2008. Iran held the 16^th rank among all countries under study.

  Discussion: The technical efficiency of the health sector in Iran is about 70% of the optimal level. As the mere increase in the expenses of the health sector cannot lead to improvement of health indices, health policy-makers should increase the efficiency of these expenses by means of appropriate policy making and implementation of these policies. Developing public insurance, improving life style, making organizational modifications, and paying more attention to the preventive measures can result in raising the efficiency of these expenses.