The reform of DRG and DIP medicare payment system is intensive， and disease entities cost accounting energizes cost control， which becomes an important part of hospital fine management. Cost accounting of disease groups formed based on DRG and DIP， as well as its application is carried out relatively rare in traditional Chinese medicine hospitals. Based on the analysis of the advantages and disadvantages of the current disease cost accounting methods， a disease group cost accounting method based on “comprehensive index method” is proposed， whose application value is explored in traditional Chinese medicine hospitals， hoping to provide help for the lean operation of traditional Chinese medicine hospitals.