OBJECTIVE: To determine the level of awareness of The Medical City (TMC) physicians on the prices of commonly prescribed medications for common causes of illnesses and commonly prescribed diagnostic tests and to know its effect on their prescribing preferences. METHODS: This study is a descriptive cross-sectional survey which includes data gathering through questionnaire, retrieval, tabulating, and interpreting of results a probability stratified random sampling of 125 TMC physicians (regular consultants, fellows, and residents) was done. The sample size was computed using the Lynche formula. The physicians were stratified by specialties which include Internal Medicine, Surgery, Pediatrics, Obstetrics and Gynecology, Ophthalmology, and ENT-Head and Neck Surgery and were asked to answer a pre-tested questionnaire. Non-respondents were sent another questionnaire for them to answer to increase response rate. The collected data were analyzed using the percentage and weighted average and one-way analysis of variance. Inferential analysis was done using ANOVA. SPSS software was used for these purposes. RESULTS: Verbal interpretation of the descriptive statistics shows that all respondent physicians agree to the statement that the prices of medications and diagnostic tests are important factors which influence them in their practice. Furthermore, the respondent physicians believe that physicians should know the prices of medications and tests they prescribe or order. They also consider the economic status of their patients in their practice. However, descriptive data based on the mean price estimates from all specialties, whether residents, fellows, or consultants, show significant difference in the physician perceived prices of commonly prescribed and ordered medications and diagnostic tests and the actual TMC prices of such medications and tests (p value > 0.05) thereby rejecting the null hypothesis saying otherwise. CONCLUSION: The Medical City physician is not aware of the prices of medications and diagnostic tests he commonly prescribes or orders.