According to data from the year of 2003 to 2014 in 30 provinces,this paper investigates the effect of center transfer payment on local government health expenditure in China.The results showed that center transfer payment only have little positive effect on local government health expenditure.And it has better effect of the per capita indicator than the proportion indicator.Besides the effect of center transfer payment varies among different regions:It has better effect in undeveloped regions than in developed regions.In particularly,the results showed that per capita GDP,per capita fiscal revenue,policy shocks,medical technical personnel per million people,elderly population dependency ratio have positive effect on local government health expenditure;however,FDI has negative effect on local government health expenditure.Policy recommendation is that we should make the local governments more accountable,carefully adjust the internal structure of the central transfer payment,and the central transfer payment policy provision should seek the fine and be carried out with other policies.