The purpose of the study is to assess the performance of Saint-Petersburg city public hospitals with regard to the use of resources provided by the system of Obligatory Medical Insurance (OMI). The medical insurance companies (MIC) compensate through OMI Fund of St. Petersburg public hospitals for their costs of medical services to the city population in part related to material and labor costs. Performance of each hospital is evaluated against two outputs: a) the total number of treated inpatients; b) the total volume of hospital’s invoices refused for payment by MICs or the number of cases when the costs of patient’s treatment were rejected for compensation by MICs.The study compares the results of evaluations conducted in a single and multiple output settings. The sample includes observations on performance of 47 St.Petersburg public hospitals in 2013-2015. The hospitals’ performance scores were estimated with the DEA (BCC-Output) model. To cope with undesirable output (refused payments) normalization of respective variable was applied. The models with normalized variables were compared with the model using undesirable output as input. The models used demonstrate consistency with regard to efficiency ranking of the hospitals.