OBJECTIVES:  Resource constraint is one of the most concern of Iran's healthcare reform plan. This principle, in turn, indicates that It is necessary to evaluate spending costs of implementing of this plan. This research aims to determine the impact of healthcare reform on natural childbirth costs and determine the price elasticity of cesarean section. METHODS:  The required data during a one-year period before and after the Implementation of healthcare reform were collected from specialized hospital for women in one of the metropolitan cities in Iran. Sample size was 1311 patients that was extracted by the data from the four types of bills related to insurance, patients, hospitals and health subsidies. Finally, after adjusting for the effects of inflation, changes in costs were analyzed from the perspective of the hospital and patient. RESULTS: After the implementation of iran's healthcare reform, the total average cost per vaginal delivery was increased from 260.85$ to 598.08$ also that for cesarean section has been surged from 412.5$ to 778.31$. The government, an average, also paid 31.4 and 23.46$ subsidies for each vaginal delivery and cesarean section respectively while patients out of packet payments became free for vaginal delivery and out of packet payment for them in comparision to befor impelementing the aforementioned plan reduced by 100 percent. During the study period the number of vaginal delivery grew by 9.5 percent and its own-price elasticity was estimated at 0/09. CONCLUSIONS:  By implementation of healthcare reform, imposes a significant cost to the health system to reduce caesarean section rates. This is despite the fact that changes in caesarean section rate ranged against costs involved relatively is inelastic. During implementing corrective interventions, policy-makers consider to financial instruments. In addition, they should also pay attention to social and cultural structures