The study aimed to identify the reality of material and moral incentives in the governmental healthcare sector in the Kingdom of Saudi Arabia, as well as to understand the relationship between material and moral incentives and the efficiency of the performance of healthcare personnel in hospitals in Riyadh city. The study used the descriptive-analytical method, with a sample size of (112) employees at Al-Iman General Hospital in Riyadh city. A questionnaire was used as a data collection tool. Based on the aforementioned, the study reached several results, the most important of which is the existence of a statistically significant positive relationship between material and moral incentives and the efficiency of healthcare personnel performance, with a Pearson correlation coefficient of (0.575), which is statistically significant at a significance level of (0.05). In light of the study's results, the researchers recommend raising awareness of the concept of material and moral incentives due to their benefits on the efficiency of performance for employees in healthcare institutions. There is a necessity to enhance the material and moral incentives provided to healthcare personnel in the governmental healthcare sector in Saudi Arabia through an integrated and effective system that awards incentives to those who deserve them according to their efficiency and performance rate. Promotions should be awarded based on outstanding performance, not solely based on seniority. Clear policies should be established for the disbursement of material and moral incentives according to performance efficiency.