Abstract:Objective:?To?learn?the?economic?performance?of?public?medical?institutions?in?Songjiang?district?of?Shanghai?before?and?after?the?separation?of?revenue?and?expenditure.?Methods:?Financial?statements?of?public?medical?institutions?were?collected,and?the?designed?questionnaires?were?filled?by?district?health?bureau.?Results:?After?the?implementation?of?separation?of?revenue?and?expenditure,public?medical?institutions?in?Songjiang?district?had?not?only?gained?steadily?increase?of?financial?assistance,out-patients?and?emergency?patients,?but?also?realized?significanty?decreasined?percent?of?operating?income?and?expense?per?out-patient?or?emergency?patient.?However,public?spending?remained?at?high?level?and?financial?deficit?of?medical?service?still?existed.?Conclusion:?Separation?of?revenue?and?expenditure,which?is?a?kind?of?government-dominating?health?investment?mechanism,has?ensured?good?development?of?public?medical?institutions,facilitated?its?return?to?commonweal,and?made?it?possible?for?implementation?of?basic?drug?system.?However,public?medical?institutions?should?strengthen?budget?management?and?control?operating?cost.