Objective To provide advice and basis for further reform of the medical service price by analyzing the effect on hospital expenses after calling off drug-addition and price adjustment of medical service in public hospitals at the end of 2016. Methods Comparing the changes of hospital expenses based on the data of hospital expenses before and after the implementation of the price reform policy in a provincial public hospital in Sichuan. Results After canceling the drug-addition and adjustment of medical service price, whether in the whole hospital, in the surgical department or in the non-operative department, the average cost of drugs for discharged patients has been reduced, the average costs of surgical operation and anesthesia has been increased, the ratio of change remains consistent with the policy adjustment range, the composition of drug charges and bed fee has been decreased and the proportion of drugs still ranks first in the composition ratio. Conclusion Canceling the drug-addition and price adjustment of medical service have a significant effect on hospital expenses. The adjustment of medical service price reflects the technical value of medical staff.