| Chinese Medicine, the traditional medicine in China, has over 5,000 year's history and has become the indispensable part of Chinese culture. As the soul of traditional culture, Chinese medicine is the combination of psychology, medicine and culture; it is the embodiment of Chinese wisdom. However, during the course of its development, Chinese medicine's development is in a state of logjam due to lacking innovation in theory; and it is exceeded by Western medicine gradually, thus its priority in medicine is replaced by Western medicine. TCM hospital, which using Chinese medicine as the main device, has undergone its splendid time in history and rough development in contemporary, now it falls behind in management and loses its competitive power; the worst thing is that the gap between it and the western medicine hospital becomes larger and larger. There are interior causes of Chinese medicine and TCM hospital and also the exterior factors of culture, economy and market. How to inherit Chinese medicine innovatively and develop it so that it will not fall behind in medicine competition? How to reform the management in TCM hospital to satisfy the demand of the development of social economy and people's health? They are the difficulties facing Chinese medicine and the modernization of TCM hospital. Through the analysis of TCM hospital's problems, based on relevant theories, we put forward a solution: to carry out characteristic management and health industry in TCM hospital and mutual supplementary management with western medicine hospital. Through the analysis of this solution's necessity, probability, superiority and SWOT model; sum up the interview on the supervisors of hospital and sanitation; we conclude that carrying out characteristic management and health industry in TCM hospital, centering round health and developing diversified management are the suitable and effective approaches for most of the TCM hospitals to get rid of current difficulty. And these approaches can remain the characteristics of Chinese medicine to the largest degree; in addition, they can inherit from Chinese medicine and improve it. Moreover, they are feasible and adaptable, advancing with the time and in well accordance with the developing rules of current medicine and sociology. These ideas are put forward clearly and systematically for the first time. There are four parts in this dissertation according to the formation and analysis of these ideas:Part I: The history, current situation and revelation of Chinese medicine and TCM hospital. Analyze the TCM hospital's management to find the inside and outside factors resulting in its current difficulty. Part II: TCM hospital should set up new orientation, carry out characteristic management and health industry. We put forward a solution: to carry out characteristic management and health industry in TCM hospital and mutual supplementary management with western medicine hospital. And analyze its necessity, feasibility and priority. Base on this theory, a new strategy was put forward: the management of TCM hospital should adopt the idea "centering around health", and carry out "diversified" management to avoid illegal competition with western medicine and its hospitals. The target customers should be the sub-healthy and healthy people in order to take advantage of TCM hospital and Chinese medicine to have characteristic management. Part III: The results of interviewing supervisors of 12 TCM hospitals on the project of carrying out health industry. The interview showed that: almost all of them support and approve our idea. Part IV: The design of TCM hospital's carrying out health industry and characteristic management. Some suggestions are advanced as follow: to develop diet health industry, bath health industry, beauty culture industry using Chinese medicine, gerontology industry, regimen and recovery health industry and build independent health-recovery hospital.
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