Objective To study the influence of drug zero rate policy in Class Ⅲ[Grade Ⅰ cancer hospital,and to research hospital income and patients' economic burden.Methods Collecting financial data from 2012 to 2015 and analyze the variances before and after the zero rate policy.Results After the implementation of drug zero rate policy,business volume kept ncreasing,the fiscal subsidy income rose,income proportion of western medicine and Chinese patent drug dropped,outpatient service drug cost per time increased,while hospitalization drug cost per time decreased.Conclusion The reasonability of drug use can be achieved through improving drug price mechanism and deepening the medical insurance payment system.