Abstract: Objective：The value creation framework of hospital is an indispensable link in the chain of social productivity development. It is also an important basis for the stability and prosperity of social economy under the market-oriented economy in China.It is， therefore，imperative for hospital administrators to carefully analyze the features and needs of each element of production in the value creation framework inside a hospital，scientifically distribute limited health resources according to the goal of administration，viz.delivery of safe，quality，efficient and low consumption patient care，establish and perfect an excitation mechanism that is popular，equitable， transparent，and effective，and achieve the maximization of both the social outcome and economic outcome of patient care.