Background 410 Hospital, a hospital in an undeveloped city, identified the first three SARS cases in February, and three more cases in April in Sichuan province. After April 25, it was designated to treat the SARS cases. Objectives This study aims to assess the expenditure for prevention and control of SARS in designated hospital and the impact of SARS on hospital management. Methods With the perspective of SARS designated hospital, a retrospective study was designed. The measures for benefit was healing rate. Medical expenditures of SARS treatment was evaluated, total expenditare were included for assessment in SARS control and management in designated hospital. Sensitivity analysis was applied to explore the range of expenditures when hospital infection rate and healing rate varied. Results All five SARS cases and six suspected cases were cured. The treatment expenditure for SARS confirmed and suspected cases were 7 866 and 4 273 RMB, and their medical expenditures were 14 983.86 and 5 494.92 RMB. Except the expenditure of supporting drugs, no statistical significance was identified in expenditures between confirmed and suspected cases. The total expenditure for designated hospital in control and management of SARS was 1.744 5 million RMB. After designation, the total income of the hospital decreased 33.45 percent compared that before designated. The hospital visits in out-patient and in-patient departments drop 43.62 and 47.33 percent. Conclusions The expenditure of treatment of confirmed and suspected SARS cases were 14 983.86 and 5 490.92 RMB. After designation, the hospital would be great influenced in its management and income.