It focuses on the budget and accounting processing of the payment of patient medical expenses from the perspective of government procurement services, which can more accurately reflect the essence of business. Administrative institutions should estab- lish the subject of “fiscal allocation income” to account for various types of fiscal allocations obtained by units from the same level government’s financial departments. The undergraduate program is accounted for in detail according to the types of appropriations such as general public budget financial appropriations and government fund budget financial appropriations. According to the purpose of expenditure, the revenue from financial appropriations is mainly calculated as the revenue used for basic expenditures and the reve- nue used for project expenditures. The funds allocated by the same level of finance to pay for patient medical expenses are essentially hospital medical activities and should be included in medical income. When the hospital finance department conducts accounting pro- cessing according to the government accounting system and year-end financial settlement requirements, it only calculates the finan- cial allocation revenue and cannot accurately reflect the essence of economic business.