Abstract: Based on 2003-2012 panel data of 18 central and western provinces, the article builds a spatial econometric model and analyzes the effect of undertaking pollution-intensive industrial on residents from the perspective of health costs. The main conclusions are as follows: As whole, undertaking pollution-intensive industries can reduce the health costs of the middle and western regions, but the reduce effect of the central region is more significant, while the west is not. Health spending levels of the Midwest residents is enhanced with the increase of income, but the health income expenditure elasticity of the west region is greater than 1, which shows that the effect of residents’ health expenditure is larger than the income. Affected by the imbalance of regional governance and the low efficiency of governance, the intensity of pollution control has not been significantly reduced in the central and western regions.