Objective To analyze the relationship between measures and economic benefit under the total medical insurance prepaid system in Xuzhou TCM hospital.Methods The trend of financial data of Xuzhou TCM hospital from 2010 to 2013, its incomes, assets, and liabilities were analyzed to evaluate its profitability, operating capacity and solvency.Results Income:The annual average income was 439.81 million yuan, with an annual average growth rate of 12%;the annual average net profit was 24.36 million yuan, with an annual average growth rate of 0.004% (excluding the profit adjustment factors in 2010). Assets:The annual average total assets was 355.82 million yuan, in which 73.21 million yuan was the added value in 2010 compared with 2009 and the growth rate was 17.22%;247.71 million yuan has been reduced in 2011 compared with 2009;45.11 million yuan has increased in 2012 compared with 2011, while in 2013, 35.58 million yuan has increased compared with 2012. The state owned assets has increased significantly. Liabilities:The annual total liabilities were 114.86, 84.03, 112.35, and 120.52 million yuan respectively from 2010 to 2013;the average debt level was 105.61 million yuan. The rate of assets and liabilities were 23.04%, 33.52%, 37.98%, and 36.37% respectively from 2010 to 2013;the annual average debt rate was 29.68%. Profitability:The average net operating margin, net interest rate of total assets and net assets yield rate were 5.54%, 6.85% and 9.73% respectively, which showed the gradually increased profitability. Hospital operating capacity:The average total assets turnover rate was 124% from 2010 to 2013. The solvency of the hospital:asset liability ratio of the hospital was 29.68% from 2010 to 2013 on average, which was in the low level of debt.Conclusion Under the total prepaid system, the measures of the hospital are proper. Economic operation of the hospital is favorable, giving the consideration of combining both economic benefit and social benefit.