Abstract: There are both market mechanism that does not work and government without working in the medical service field, so it is necessary to be supported by the third parties, such as patient s right committee, doctor s association, and so on, which contribute to forming high-efficient and rational medical care pricing system.

Objective: The purpose of this research is to apply Activity-based Costing in medical treatment project costs accouting.

The two policies of“ regulation on improving centralized tendering process for drug purchase” and“ normative and adjustment of medical service price” were enforced in 2004 and 2005 in Zhejiang Province to control the rapid increasing of medical expenditure.

Main reasons and the countermeasures for increasing medical service price were analyzed.

In order to realize the normative medical order and charge and meet with the requirement of clinical business and extension, it analyzes the medical service price, medical order as well as various entity relations, and offers effective designs and plans for realization.