Hospital business process optimization and reengineering is an effective method and channel for hospitals to enhance medical and management quality, realize cost minimization, improve efficiency, and increase benefits. The paper gives an account of the theories, methods, steps, relevant techniques, and tools of hospital business process optimization and reengineering, discusses the systematic framework for hospital business process improvement and key success factors and obstacles for hospital business process reengineering, analyzes the relationship of business process reengineering with hospital organizational structures and hospital information systems, and puts forward assessment criteria for hospital business process optimization and reengineering.