Abstract:Objective：To investigate the effect of monitoring medical expenses in public hospitals. Methods：Based on the descriptive statistics collected from Jiangsu Provincial Health Almanac and Public Hospital Fee Control Collection，the average medical expenses and per capita medical expenses of public hospitals at different levels in different years were calculated. Results：In the first three quarters of 2017，the average medical expenses of outpatients and inpatients in public hospitals in Jiangsu province increased by a year-on-year increase，showing good monitoring results. Between 2013 and 2016, the public hospital outpatient and inpatient per capita medical expenses were similar，with the proportion of medicine gradually decreasing. The tertiary hospitals in all levels of hospitals have the highest consultation fees and the highest level of hospital medications. Conclusion：The suggestion is that，in the three aspects of circulation，use and supervision，the drug prices and accounting should be regulated. the establishment of a scientific hybrid payment methods is needed. the implementation of grading medical treatment system is required. In the operation of public hospitals，the implementation of multiple government financial compensation mechanism is vital.