Objective: To explore the effect of the implementation of Jintan People's Hospital of payment and the implementation process, there are problems. Methods: The literature research, quantitative surveys and qualitative interviews to understand the effect of the payment paid by hospitals and problems. Results: Currently Jintan People's Hospital 18 diseases formal trial DRGs, the implementation of good effect, regulate medical practices, better overall quality of medical care; cost burden on patients has been significantly reduced.