Abstract: Financial management is the foundation of economic management of hospital. The budget management is the key task of financial management. Now the hospital’s financial budget have two kinds. the one is based budget（also called traditional budget）.It is one method that the next year’s budget is established from the last one and the last year’s budget is the based one. The advantage of this method is that it is easier to execute. The problem of this method is that it wastes the resources. The second method is used all over the world hospital. This method is executed according to the one year of hospital’s administration goal,including the hospital’s financial budget,cost and income,all the budget begins from zero. This method’s great advantage is that the budget is executed around the hospital’s manage aim,while to use all sanitary resources. The last method can made the hospital’s manager controlling the hospital’s economic works and the medical service work all the time,realizing two goals of social and economic benefit.