Introduction: From long time ago man has played a key central role in the organization's system. The objective of management is to attract, maintain , and enrich competent man power. Designing and systematizing Fair salary and wage payments is one of the most important factors in meeting this objective.

Methods: A descriptive cross - sectional study with the objective of studying the impact of fee for service on nurses' work output and a proposal of a favorable model was conducted on a sample population on consisted of 255 nurses, and 52 head nurses holding degrees ranging from higher national diplomas ( 2year degree) to masters in nursing with at least one year clinical experience. Aquestionnair was used as a testing instrument for collecting data. The variables under study in the work output include nursing care, job satisfaction, workload, employee relationship, degree of reglligence, and malpractice treatment. Nurses and head nurses' point of view about the effect of present fee for service policy on these factors were tested . 

Findings: The results indicate that only 34% of nurses and 44.6% of head nurses believed that the current method of fee for service plan would have an impact on the improvement of nurses' workout . One the other hand 82% of these head nurses believed that with the current method of fee for service plan, the objectives of the plan also can not be covered.

Results: Carrying out the present model of fee for service plan does not have a consider all impact on the improvement of the nurses' work output , and if optimistically speaking it would cause them to remain in the organization it is there fore recommended to use " a fair share view and open door policy" as a compromised reform Model instead of the current model.