Nursing stress threatens the performance of health care organizations. This paper examines the influence of work related stress on health outcomes and Organizational Performance of nursing staff working in the health care sector. Although in the relevant literature several studies have examined the direct relationship between stress and job performance, claiming that it is associated with organizational performance, there is lack of an approach which investigates the combined relationships among stress and multiple performance dimensions at the organizational level. This paper presents a field survey based on 96 valid questionnaires. Results confirm a strong negative association among work related stress and all sub dimensions of organizational performance, namely, open system, rational model, internal process, and human relations as well as health outcomes.