Objective To analyze the effect of ABC classification method on improving the drug management system of Urumqi Friendship Hospital. Methods The drug data of Urumqi Friendship Hospital from January 2017 to December 2017 were retrospectively analyzed.The in-hospital information system (HIS) was used to sort the annual consumption, and the antibacterial drugs were sorted by DDDS to analyze the data as control group.From January 2018 to December 2018, the drug data of Urumqi Friendship Hospital were retrospectively analyzed by the AIS analysis method in the hospital HIS system, which were selected as research group.The effect of ABC analysis on the management of hospital drugs was analyzed, and to compare the changes in drug management before and after the application of ABC analysis. Results Through the analysis of A, B and C drugs, the total amount of 921 drugs were found to be 127.358 million CNY, including 122 kinds of A drugs (13.25%), the amount of 97.975 million CNY (79.93%); 133 kinds of B drugs (14.44%), the amount of 18.56 million CNY (15.17%); 666 kinds of C drugs (72.31%), the amount of 6.0016 million CNY (4.90%). Among the ABC classification results, there were 24 kinds of cardiovascular system drugs in class A drugs, and the highest percentage was 28.57%.There were 29 kinds of Chinese herbal medicines in class B drugs, with a percentage of 23.33%.There were 52 kinds of oral drugs (42.62%), 64 kinds of injections (52.46%), and 6 kinds of other drugs (4.92%), while 66 drugs (49.62%) were classified as B drugs.Species (44.36%) and 8 other drugs (6.02%). Among the ABC classification results, the total amount of the top 20 drugs in class A drugs was 46 073 529.65 CNY, accounting for 47.11% of the A drugs, accounting for 37.65% of the total amount.Among them, the amount of clopidogrel tablets and atorvastatin calcium tablets was significantly larger.The inventory turnover index [(8.37±2.48)d] of the inventory management index of the research group after the ABC classification method was significantly higher than that of the control group [(6.22±3.61)d] (t=14.897, P<0.05), and the monthly average inventory amount [(4.5 354±0.5 024)million CNY] was significantly higher than that in the control group [(3.9 963±0.7 538)million CNY] (t=18.060, P<0.05), the slow-moving rate [(4.24±1.31)%] and the stock-out rate [(8.73±3.14)%] were significantly lower than those in the control group [(5.11±0.82)%, (9.39±2.67)%] (t=17.084, 4.859, all P<0.05). Conclusion The ABC classification method helps to improve the hospital drug management system, can promote rational drug use, dynamically manage drugs, ultimately reduce drug costs, and rationally utilize limited drug resources. Key words: Classification; Management information systems; Hospitals; Fees, pharmaceutical; Medication therapy management; Inventories, hospital; Costs and cost analysis