Objective The objective is to analyze the performance indicators of the hospital's orthopedics department based on the DRG tool, evaluate the medical service ability of the orthopedic department, and provide a theoretical basis for the hospital to build a performance management evaluation system. Methods The Shanghai version of DRG tool was used for grouping, and DRG indicators (RW, CM, CMI, number of groups), surgical grades, and disease structure were used for assessment. Results 3,310 people were discharged from the department of orthopedics, the total number of CM was 4,196.99, the CMI value was 1.27, and the number of DRGs was 161. Conclusion The overall condition of the orthopedics department is good, mainly for the treatment of difficult and severe cases. The results reflected by the DRG indicators are scientific and objective. The remission group is lower than normal group (P > 0.05). The accuracy, sensitivity, specificity, negative predictive value, and positive predictive value of EOS were 57.6%, 29.7%, 83.8%, 55.9%, and 63.3%, respectively.