Objective To evaluate the hospital service performance of inpatients in the neurology department based on the diagnosis related groups (DRG), and to provide the basis for fine management of the hospital. Methods The performance of inpatient medical service in the department of neurology from January 2020 to June 2021 was analyzed by using six indexes including capability, efficiency and safety. Results The comprehensive evaluation of medical service performance was best in ward A and worst in ward C. In terms of ability, the case combination index was the highest in ward A and the lowest in ward C. In terms of efficiency, ward D had the best time consumption index and cost consumption index, while ward A had the worst. In terms of cost composition, diagnosis, Western medicine, traditional Chinese medicine and comprehensive medical service expenses accounted for 84.48% of hospitalization expenses; through cost splitting, the cost consumption index of each item in different wards was different. Conclusion There is deviation in the ability and efficiency of each ward in the neurology department. DRG index can be applied to evaluate the performance of each ward in the hospital, and the medical ability and efficiency can be evaluated objectively and fairly.