Introduction: Per capita health care spending is one of the key policy tools expected in human development. In this regard, to achieve better economic growth and human development in any economy, the existence of good governance is very important, especially in developing countries.
Methods: This research uses the two-stage Generalized Method of Moments for Iran from 1996 to 2021, with data collected by the World Bank, the Central Bank, and the Statistical Center of Iran. Estimates were made using Eviwes 10 software. 
Results: The model estimation results show that a one percent increase in health care costs in an economy leads to an increase of 0.498 units in human development with a probability value of 0.068. The results of the second objective of the research showed that the composite index of good governance has a positive value equal to 0.542 and a probability value of 0.071. Also, the investigation of the third objective of the research showed that the variable coefficient of interaction between health care costs and good governance index is positive and equal to 0.732 with a probability value of 0.048.
Conclusion: It can be stated that if the country can guarantee a good governance environment, health care expenditures are more effective in increasing HDI and the interaction of the governance index with health expenditures guarantees that the regulation of quality governance is an integral tool for The effectiveness of health care costs for increasing human development in Iran.