Objective (s): health transformational plan was executed as one the most important plans by the ministry of health and medical education in order to reduce admission fees. In order to evaluate the effectiveness of this plan, this study was conducted with the goal of determining the health expenditures by households after implementation of this new plan. Methods: This cross-sectional study was conducted in Zahedan, Iran in year 2015 and 2016. The study conducted on 816 families including both

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... al and urban households. They were selected randomly by clustering method. Data were collected by in-person interviews using the World Health Survey. The Data were analyzed using descriptive and inferential statistics. Results: In 93.1% of instances the head of household were men (n = 760) and 78 families did not have any health insurance. After implementation of health transformational plan, 12.99 percent of families were still faced with catastrophic health expenditures. However, the rural families were facing more catastrophic expenditures compared to families living in urban areas. This catastrophic expenditures have a meaningful relation with many variables including dental care (OR: 4.99), drug fees (OR: 2.927), physiotherapy (OR: 2.927), outpatient expenditures (OR: 96. 639), having a family member who needs to be taken care of at home (OR: 3.186), and a family member who needs to be taken care of at a hospital (OR: 1.866). Conclusion: The results showed that a relatively large proportion of people in families in Zahedan still are facing catastrophic health related expenditures and health transformational plan has not been able to reach its goals in this city.