Objective: To construct the hospital cost accounting method based on the strategy-oriented performance management, providing multidimensional cost information to support the hospital performance management. Methods: We performed literature research to discuss the cost accounting method rationally, and used case study method to design a set of cost accounting method for general third-level grade-A hospital in a certain area which could meet the strategic-oriented performance management of public hospitals. Results: Under the new medical reform, hospitals should implement strategy-oriented performance management which needs a fine cost accounting method to support. Furthermore, this method met 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.