Objective: This study evaluates the effects of DIP payment method reform on public hospitals, explores changes of hospitals' medical insurance and operational models within the context of value-based healthcare, and provides guidance for high-quality management in public hospitals. Methods: Focusing on quality management and cost control, the hospital carried out the construction of disease strategic management, integrated clinical pathways, medical record quality management, ineffective cost control, and other refined operational management systems. These efforts contributed to a self-strengthening supervision mechanism. Results: The hospital improved the management efficiency, with a balance of interests among doctors, medical insurance, and patients. Conclusion: The value-oriented DIP payment model has driven public hospitals to reform and encouraged them to value-based medical treatment. Public hospitals should adopt a more strategic perspective, respond to the demands of reform, overcome challenges in the reform, and optimize and adjust management continuously and dynamically to achieve high-quality development.