Abstract: To analyze the policy history and development characteristics of health service industry.Technical innovation, health demand, Health China strategy and new health care reform policy drive health service industry into the abyssal region.Traditional medical service model is changing, and essential productive factors of the supply side are recombined.There have been diversified infiltrations of social capital, and rapid development of private and foreign-funded medical institutions, health service industry presenting an open development situation.As public health service demand turns from medical service to health service, "medical federation+internet hospital" may reconstruct the medical industry ecology.Social medical organizers might hopefully develop from followers into competitors or transcenders of the governmental hospitals.