Breaking the mechanism of drug-maintaining-medicine is the key point of comprehensive reform in public hospitals. This study summarizes the situation and effects of breaking of drug-maintaining-medicine and compensation mechanism reform for public hospitals. We point out some problems existing in the reform，including the financial compensation for the hospital is limited，medical service price adjustment is not enough，the chain of interests between drugs and hospitals has not been cut off. Based on such findings，the paper suggests that the formation mechanism of medical service price should be improved，the supervising and managing responsibility of government should be cleared，the standards of medicare payment should be reformed，and management and supervision of drug distribution and sales should be strengthened.