The DIP payment method originates from local practice and is rooted in the theory of medical insurance fund payment. Nowadays, it is being widely implemented, which will have a profound impact on the high-quality development of medical insurance and the coordinated development and governance of the medical and pharmaceutical supply side. Based on the principle of DIP payment and the corresponding payment system, the paper systematically discusses the suitability and effectiveness of DIP. The core feature of DIP payment is that it not only originates from clinical practice, reflects the common characteristics of disease diagnosis, operation and resource consumption based on the clinical real world, but also makes necessary corrections and the complete construction of the payment system by means of the big data. During the implementation process of reform, it is necessary to effectively avoid misunderstandings about the reform stage, the original intention of reform design, and the essence of payment, in order to ensure the progress of the reform and ultimately achieve the expected results.