Background : Special attention to medical education and hospital expense were the main reasons to develop a new feefor service program (CARANEH) in educational hospitals The main objectives of this program were to improve medical education via encouraging faculty members and to support the educational hospitals financially Objective : The objective of this study was to evaluate the opinions of clinical faculty members of Isfahan University of Medical Science about the efficacy of CARANEH program in providing educational services Methods : In this crosssectional study 69 clinical faculty members who were directly involved in medical education and CARANEH program were asked to fill out a questionnaire designed in four domains Results : According to the results faculty members did not have enough information about the content of CARANEH program Moreover 60% of the respondents believed that CARANEH had not increased attendance of clinical faculty members in their due educational activities In addition more than 65% believed that CARANEH had not improved undergraduate and postgraduate education According to the respondents major priorities in improving medical education are respectively improving educational facilities in hospital wards (875%) libraries (852%) and audiovisual section (843%) Conclusion : According to these results it seems that CARANEH program has been an unsuccessful program in improving medical education in educational hospitals Even though the theoretical concept of CARANEH had been based on improving medical education but practically the idea has not worked successfully Therefore its precise revision can increase its efficacy in this regard