S City, as one of the five national pilot cities for medical service price reform, has promoted two rounds of dynamic adjustment reforms based on mechanisms such as total amount control, classification management, dynamic adjustment, and performance evaluation. By prioritizing general service items and disciplines with insufficient medical supply, S City has optimized its price adjustment direction and structure , promoting the rational flow of medical resources. The study finds that price reforms have significantly improved hospital income structures, enhanced the value of technical labor, and stimulated the supply of high-quality medical services, achieving a win-win outcome for patients, payers, and providers. However, challenges remain, including weak incentives for autonomous price reduction and an underdeveloped price generation mechanism. Based on S City’s pilot practice, this paper summarizes key approaches and reform outcomes, and proposes policy recommendations to improve the dynamic price adjustment mechanism, strengthen the construction of information technology support, and prioritize medical insurance fund sustainability, to inform ongoing medical service price reforms in other regions.