Objective: The paper analyzed the impact of DIP policy on the cost burden of inpatients with medical insurance. Methods: The inpatient data from2016to2020in10secondary, tertiary hospitals in Guangdong Province that implemented DIP were analyzed. Results: After the implementation of DIP, the inpatient burden of the secondary, tertiary hospitals in Guangdong Province was reduced generally, the average inpatient cost increased slightly, the out-of-pocket payment rate decreased. In particular, the effect of the policy was more significant between2018, 2019. Conclusion: DIP can effectively control the growth of unreasonable medical expenses, reduce the burden of hospitalization expenses