This study analyzes the status, issues, and strategies of investment in China's medical and health sector. It underscores the critical role of a healthy workforce and health industry in driving economic growth, noting their importance for both public welfare and high-quality socio-economic progress. Through horizontal and vertical comparisons, the study highlights key issues: the low proportion of health expenditure to GDP, insufficient government investment, and an underdeveloped financing structure relative to international standards. Based on these findings, the study recommends: (1) shifting traditional perspectives on health investment to emphasize its critical importance, and incorporating health sector development goals into relevant performance evaluations; (2) increasing the scale of investment, establishing a stable, sustainable, and diversified government funding mechanism, integrating various forms of social resources, and expanding health financing channels; (3) enhancing investment efficiency by adopting a population health indicator-based framework for investment, monitoring, and evaluation, thereby advancing health governance modernization. The study advocates for positioning the medical and health sector at the core of economic development to achieve a synergistic advancement of health and the economy.