Along with the civilization, people start to pay attention to the maintenance of the quality of life. The changing population age distribution stresses on improving human's quality of life through good interaction between people and society. The degree of urbanization is accelerating along with the changing era. Since medical resources are easily concentrated on areas with highly socioeconomic development and dense population, areas with low socioeconomic development are often lack of medical resources. Such unfair medical resource allocation would further influence the health of residents in such areas with inadequate medical resources. The public statistics provided by Shanghai Municipal Government are the sample sources for this study. According to the degree of urbanization and the medical expenditure in various areas announced by the government, the research results are concluded as followings. 1. Degree of urbanization presents significantly positive effects on "general administrative expenditure" in medical expenditure. 2. Degree of urbanization shows remarkably positive effects on "public health expenditure" in medical expenditure. 3. Degree of urbanization reveals notably positive effects on "personal medical expenditure" in medical expenditure. 4. Degree of urbanization appears significantly positive effects on "medical supplies expenditure" in medical expenditure. According to the results, suggestions are proposed to establish reasonable systems and improve medical resource allocation to diminish health inequalities as well as provide important directions for improving medical expenditure policies.