How to determine the degree of economic efficiency of a sanatorium and resort organization? The author provides the relevant criteria, which are then linked with the analytical and synthetic indicators, and derives a comprehensive cost-effectiveness ratio of such business entity. The value of this ratio allows to determine the exact position of a sanatorium and resort organization on a 5-point scale: 1) absolutely efficient 2) highly efficient 3) efficient 4) lowly efficient; 5) inefficient. The values of analytical indicators also reveal the reserves for the development of a particular business.