Facing the increasing competition and the requirements of the new medical and health system reform,how to improve the overall quality of service of hospital while continually reduce the operating costs and support better service for patients has become an important part of hospital management. Reducing the cost of pharmaceutical distribution in the hospital operating costs is the key factor and it is also a social hot topic of common concern. Therefore,we developed the hospital pharmaceutical distribution and integrated management model,and reconstructed various links of the pharmaceutical distribution basing on the information technology. By the implementation of this project,the drug circulation and drug distribution cost were reduced,the drug turnover rate was improved,the drug inventory was decreased and the occupied amount of money was cut down. Based upon these improvements,we achieved the meticulous management of hospital pharmaceutical distribution. It was also laying the practical foundation for the scientific management of hospital pharmaceutical distribution and changing the management philosophy,enhancing the core competitiveness of the hospital.