The medical service industry is the few undeveloped areas without the baptism of market in China. The new medical reform promoted a significant increase on the need of medical services. But its backward profit model constrained the development of the whole industry. The quality medical resources are concentrated on large hospitals in big cities，and the supply structure is unbalanced. On one hand，the people face difficult and expensive medical services. On the other hand，the value of medical services is underestimated seriously. Starting from the medical industry chain analysis，this paper analyzes the status and role in the medical industry chain systematically. From the analysis of the market supply and demand，the development status，and the management system and policy of China’s medical service industry，this paper elaborated the investment opportunities and risks in China’s current medical service industry.