Objective:To explore the relationship between financial subsidies income and hospital operation. Methods:The research is based on 13 hospitals of Qingdao,we are focused on the financial subsidies income and hospital operation,we adopt descriptive?analysis to seek for the situation of the financial subsidies,use the Pearson Correlation Coefficient to find the relation between financial subsidies and operation.Results:The government subsidy income of the city public hospitals is increasing year by year,but the proportion of the government subsidy income is decreasing year by year;The composition of total revenue is not reasonable,although the drug proportion is decreasing year by year,but the proportion is still on the high side;There is positive correlation or negative correlation between financial subsidies income and hospital operation.Conclusion:We should improve the top-level design,clarify the government input boundary, improve the government input mechanism, carry out refinement?hospital whole cost accounting supported by the information construction.