This paper firstly reviews the achievements and existing problems of China’s government in the supervision of medical service price in public hospitals in recent years. On this basis, patient’s interests, the interests of the public hospital, medical staff perspective, analysis of the three main psychological cognitive differences’ influence on medical diagnosis strategy, and the utility of public hospital medical service price regulation are analyzed, and accordingly perfect China’s public hospital medical service price regulation suggestions are put forward. In this paper, taking a medical institution as an example, combined with the psychological cognitive differences of multi-interest theme, and through research, it is shown that the causes of influencing the unreasonable admission behavior of patients in medical institutions are as follows: first, the characteristics of vulnerable groups of patients affect the unreasonable admission behavior, mainly children and the elderly. Second, the health risk avoidance psychology drives patients to be hospitalized unreasonably, especially those with chronic diseases or those who pay attention to their own health. Third, the influence of convenience degree on unreasonable admission is relatively small. Fourth, doctor’s advice has an important influence on unreasonable admission behavior. Fifth, the medical insurance system affects the unreasonable admission behavior of patients to a certain extent.