Objective: To put forward some suggestions about the sustainable development of new rural cooperative medical scheme(NRCMS) according to the fund operation and the cost of hospitalization of NRCMS of the certain city in Jiangsu province from 2008 to 2010. Methods:Relevant data were collected,and statistic descriptions and key informants interviews were applied. Results:The overall operation of NRCMS was in good condition,but some problems about policies and management still existed:the time of raising money and adjusting scheme was not match;the cost of hospitalization in city hospital was high;the cost of medicine and material outside the reimbursement directory was much too high;the aging of population influenced the operation of NRCMS. Conclusion:The research area should take some measures to solve the problems,establish stable financing mechanism,adjust the scheme of compensating timely,continue the supervision and payment scheme reform of medical institutions,improve the performance appraisal and the referral system,strengthen the construction of grassroots medical institutions.