In order to understand the distribution of hospitalization costs and development trends in Steel worker hospital, we used the proportion, the dynamic series and other indicators to analyze the Proportion and the developments of all medical costs spent by inpatients in a hospital during 2002 to 2009. As a result, expenditure on medicine obtained the largest proportion of the hospitalization costs. In the observation period, the proportion of medicine and laboratory tests kept growing, particularly of the medicine costs. While the blood transfusion costs decreased. The results indicated that we should focus on medicine costs firstly and then on laboratory tests fees to control the growth of hospitalization costs of steel workers.