The Health Monitoring System (HMS) for a Medium and Short Span (MSS) bridge is different to one for a long span bridge, because of factors such assize, scale and importance. Therefore a proper HMS needs to be developed to meet the economic and applicability requirements of the large number of MSS bridges. Approximately 90 % of existing bridges in China are categorized as MSS bridges and most are beginning to deteriorate. Furthermore, there is not a suitable HMS that can assess the condition of the bridge in accordance with a growth market where traffic volumes are likely to increase. Indeed, the artificial patrolling system currently in use is unable to monitor bridges in the long-term and highlight problems within a sufficient time scale. Having discussed the necessity of a HMS for MSS bridges, this paper proposes a suitable system that uses displacement monitoring in addition to the necessary precision. Displacement was chosen as the main monitoring indicator for intuitive, convenient and direct viewing, as its critical characteristic is that it is both economical and straightforward to use. Specific details regarding the laser displacement sensor and the development of a wireless data acquisition and transmission system are also provided. The reliability of the displacement monitoring sensor and data processing system is confirmed through different stages of an installation test.