To relieve the serious utilization imbalance of medical resource in the community hospital referral system in China，this paper studies the service capacity design and its pricing via an integrated model of the queuing and game theory． The behavior of delay-sensitive patients is first captured，followed by a competition equilibrium between a profit-oriented class 3-A hospital and a community hospital，whose goal is to serve more patients． We show that the optimal service capacity of community hospital is increasing in the government’s subsidy，while the price of class 3-A hospital is decreasing if the subsidy is sufficiently large． Our result also shows that the subsidy policy is an effective coordination mechanism to relieve the mentioned imbalance