Health services is the next trillion global industry, its development is of great significance for the promotion of innovative economy and the optimization of industrial structure. At present, China's health services industry is in the early stage of development, and faced with many problems. Through the analysis of the dynamic factors of the development of health service industry and its mechanism of action, it can establish the system dynamics model of health service industry development with system dynamics method. Finally, based on the analysis of the feedback loop we should make efforts from the flowing four aspects:government guidance, technical innovation, health care reform and talent management.