Objective: The paper compares medical treatment in other places in Shandong Province, and explores the necessity and feasibility of including medical treatment in other places into DRG payment. Methods: Based on the CHS-DRG 1.1 version grouper, the inflow and outflow of cases in other places of Shandong Province, and the difference between the cost of medical treatment in other places and local area were evaluated and analyzed. Results: The concentration of medical treatment within the province is obvious, the medical treatment within the province is mainly for minor diseases, and the cost of medical treatment in other places within the province is significantly higher than that of local medical treatment. Conclusion: The government should enhance the management of medical treatment cost in other places within the province, and integrate the medical treatment in other places within the province into the DRG payment and supervision of the medical treatment place. Also, it was suggested to implement the same price for the same disease in the same city, guiding the return of low-weight cases to the place of participation and medical institutions at the county level and below, and improving the effectiveness of medical insurance funds.