Objective: Construct the hospital cost accounting method based on the strategy-oriented performance management, providing multidimensional cost information to support the hospital performance management. Methods: By means of literature research to discuss rationally, by using the method of case study to design a set of cost accounting method for general third-level grade-A hospital in a certain area which can meet the strategic-oriented performance management of public hospitals. Results: Under the new medical reform, hospital should implement strategy-oriented performance management which needs a fine cost accounting method to support.Also, this method meet the need for other multidimensional objectives. Conclusion: the cost accounting method which meet the strategy-oriented performance management should include four parts:①total cost accounting; ②three-level cost accounting; ③applying activity-based costing for project-level cost accounting; ④single track accounting system of financial and administrative cost information.