One of the priorities of the modern world medical community is the continuous comprehensive improvement of medical care quality. Evaluation of medical care quality and material costs level for the management of patients with acute respiratory pathology (ARP) was performed in one city medical facility, as well as cost-effectiveness analysis of the project “Improvement of medical care quality for children of the Rostov region”. The first step of this study was retrospective audit of source medical records (n = 154) of Children’s hospital via the adapted World Health Organization questionnaire “Evaluation of in-patient care quality for children” recommended for Europe and revised in 2015. Inclusion criteria: hospitalization of patients with acute conditions; outcome — recovery with no complications; presence of one of the clinical manifestations (acute nasopharyngitis, acute non-obstructive bronchitis, acute obstructive bronchitis, acute obstructive laryngitis, acute community-acquired pneumonia). The cost-effectiveness evaluation was performed considering the direct treatment costs and the coefficient of economic costs per patient (CECPP). Analysis of the study’s first stage has revealed defects in medical care quality, significant and irrational material costs of the medical facility at all stages of medical and diagnostic care for children with ARP. CECPP peak indicators came under notice in all observation groups due to high expenses on medications and specifically those not included in clinical practice guidelines, vast amount of unreasonable hospitalizations and diagnostic procedures, expenses on physical therapy (PT), etc. Analysis of the study’s second stage medical records (n = 146) of patients with ARP took place after the initial audit followed by quarterly monitoring and hospital staff training (endpoint — 12 months). Significant improvements in the health care quality and cost-effectiveness for children with ARP have been shown.