RFID technology is an emerging automatic identification technology in recent years. Based on the research on RFID indoor positioning system, this paper proposes a clustering SPA relative positioning algorithm based on nearest neighbours in the 5G network architecture system. After analysing the algorithm process, simulation experiments are carried out. The experimental results show that the algorithm can effectively improve the positioning accuracy of the system. Based on the research on the application of RFID in hospital medical care management, the medical care mobile management system is designed, mainly including the database system of the system, the handheld data acquisition and wireless transmission system based on the 5G network platform, and the management running on the desktop PC. The system has been designed in detail, with a view to RFID technology can be applied to medical care management.