OBJECTIVE： To analyze the effects of drug “zero-profit policy” on amount and number of prescriptions in the public hospital， and to provide reference for drug policy evaluation and continuous improvement. METHODS： Retrospective analysis was used to analyze the change of prescription amount and quantity before and after the implementation of drug “zero-profit policy”， and the effects of the policy on prescription amount and quantity of different categories， different departments and common chronic disease diagnosis in 7 provincial hospitals and 5 municipal hospitals in Hangzhou area. RESULTS： After the implementation of drug “zero-profit policy”， increase rate of total prescription amount was 16.51％ in 12 hospitals， among which the provincial hospitals （18.20％） was higher than municipal hospitals （7.58％）. Total prescription amount and quantity， average prescription amount in outpatient department of municipal hospitals were all increased， compared to before the implementation of the policy. Total prescription amount and average prescription amount in outpatient department of provincial hospitals were both increased， while prescription quantity was decreased. Constituent ratio of anti-tumor agent outpatient prescription amount increased from 7.00％ to 9.10％； constituent ratio of nervous system drugs inpatient prescriptions increased from 9.40％ to 11.20％； constituent ratio of anti-infective drug outpatient and inpatient prescription both decreased by more than 10％. Total amount of outpatient prescription all increased in each department except for nephrology department and general internal department among top 10 departments. The average prescription amount of urology surgery department increased by 16.89％ at most， while that of nephrology department decreased mostly （－4.31％）. The average prescription amount and drug types of hypertension， diabetes and hyperlipidaemia were all increased after the implementation of the policy. CONCLUSIONS： There are some differences in the change of prescription between provincial and municipal hospitals， medication behavior of physicians in outpatient and inpatient department after the implementation of the policy.