Objective: Based on the medical insurance data of diabetes inpatients, the paper analyzes the impact of DIP on patients' hospitalization expenses.Methods: We chose diabetes hospitalized patients who participated in basic medical insurance from June 1, 2016 to December 31, 2020 in a Grade III Level A hospital in Guangzhou. The generalized linear model was used to analyze the effect of DIP payment method on the average total hospitalization expenses, the proportion of average self-paid expenses and the average length of stay of patients.Results: The implementation of the DIP payment system reduces the average total hospitalization expenses of diabetic inpatients by 6.5%, average self-paid expenses by 11.1%, proportion of average self-paid expenses by 1.3%.Conclusion: The implementation of the DIP payment system can effectively control the growth of average total hospitalization expenses of diabetes hospitalized patients, reduce the cost of western medicine, laboratory and materials, and at the same time, reduce the burden of individual hospitalization expenses. The DIP payment system has the practical significance of promotion.