Objective: The paper explores the effect of DIP payment mode reform on public hospitals, and provides suggestions for public hospitals to adapt to the DIP payment mode reform. Methods: Questionnaire survey and expert interview were used to understand clinicians' views on the reform of DIP payment method. The cardiovascular patients’ average cost of examination, average drug cost and average length of stay in each ward were analyzed by one-way analysis of variance. Results: The reform of DIP payment mode was highly recognized by clinicians, the medical treatment behavior was more standardized, the cost control ability of clinical departments was further improved, and the average length of patient stay was significantly reduced. Suggestion: Public hospitals should enhance the understanding, publicity and training of DIP. The medical insurance department should further improve the reform of DIP payment mode to ensure the stability of the unit price and the stable operation of the medical insurance fund.