Objective: This paper analyzes the influence of dominant diseases of traditional Chinese medicineon the operation of public TCM hospitals after Shenzhen has incorporated them into the Diagnosis-Intervention Packet. Methods: Taking the medical records of DIP inpatients from2020to2021in a3A public hospital of TCM as the research sample, this paper analyzes the basic situation of four categories of diseases, the implementation of the dominant diseases of TCM. Descriptive statistics is used to analyze the dominant diseases of TCM in different groups. Results: The cost management effect of the dominant diseases of TCM is good, the hospital's revenue, expenditure is balanced, with a slight balance. However, there are also problems, for example, doctors are not motivated, the payment method does not reflect the dominant diseases of outpatient TCM. Conclusion: TCM hospitals should enhance the dominant diseases of TCM, improve competitiveness. Medical insurance payment reform should be in line with the performance appraisal of doctors, adhere to the "same disease, same effect, same price" of Chinese, western medicine, move towards paying according to curative therapeutic effect