Abstract Objective: Through the preparation of annual reports on state assets, public hospitals can enhance the level of lean management about assets. Methods: This paper uses the comparative analysis method to summarize the connection and difference between the annual report and the inventory report of the state assets in administrative institutions. On this basis, this paper analyzes the difficulties of public hospitals in the preparation of annual reports on state assets. Results: Through the top-level design of asset management, optimizing the process of whole life cycle management and innovating asset management tools, the public hospital not only to solve the difficulties of preparing the annual report on state assets, but also to enhance the level of lean management about assets. Conclusion: Based on the annual reports on state assets ,public hospitals should change the traditional management mode of assets, improve the quality and application level of information, boost the lean management of assets, and speed up the establishment of modern hospital management system.