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• Introduction: Measuring the extent and nature of outsourcing in public hospitals affiliated with Tehran University of Medical Sciences (TUMS), Tehran, Iran was the aim of this study. • Methods: In this cross-sectional applied study, we reviewed the relevant literature and interviewed with 5 experts to introduce various indices of measuring the extent and nature of outsourcing. We recommended 6 simple indices. The data was collected from 14 hospitals affiliated with TUMS in 2007. • Results: The extent of outsourcing in TUMS hospitals was 12% in average. Moreover, the private sector was in charge of 25% of employments. There were 124 contractual agreements between TUMS hospitals and other parties in 2007. A private institute was the other side of 90% of contracts. The other sides of 68% of contracts were recognized in a competitive space. However, 10% of the contracts had been revised during implementation. • Conclusion: Although the extent of outsourcing was not considerable, the implementation process of outsourcing was acceptable. • Keywords: Policy; Outsourcing; Contracting; Private Sector; Hospitals, University.