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Abstract Objective: The study was to prove the affect of remuneration on health service quality, cost-effective, and human resource outcomes. Method: The design of the research was a quantative method with a cross-sectional Survey by delivering questioners to the population target, namely all Muhammadiyah and Aisyiyah Hospitals in Indonesia. The samples were 163 people came from 58 hospitals. Data analyses used Partial Least Square (PLS) as a Structural Equation Model alternative. Result: Three of the hypothesis were supported by the data, those were the remuneration effected on quality health service; the remuneration effected the cost-effective, and the remuneration affected the human resource outcomes. Conclusion: The hospital should utilize the remuneration strategy to improve the health service, cost-effective and human resource outcomes.