In terms of the total volume of health financing, the total health expenditure (THE) (by source) in Shanghai in 2015 was 153.66 billion yuan, accounting for 6.1% of GDP, and the total health expenditure per capita was 6362.0 yuan. In terms of the financing structure, the health financing in Shanghai was mainly from social health expenditure (accounting for 57.4% of the THE). Government health expenditure and out-of-pocket(OOP) expenditure accounted for 20.8% and 21.8% of THE in Shanghai respectively. In terms of the institutional allocation, the THE (by organization) in Shanghai over the same period was 172.25 billion yuan, of which the medical institutions accounted for up to 85.2%. Overall, the THE in Shanghai increased substantially in 2015. The proportion of OOP stayed stable and the hospitals remained the main institutions where health expenditure allocated. In 2015, the proportion of THE in GDP for the first time exceeded 6%. In the current economic situation, it was suggested to promote the integrated health system reform through implementing hierarchical diagnosis and treatment, deepening the comprehensive reform of public hospitals and other initiatives with the aim of controlling the rise of medical expenditure within a reasonable range, while encouraging the development of commercial insurance and diversifying the financing sources to ensure the sustainable development of the health financing of Shanghai.