This case mainly introduces the organizational structure of “Xinhua-Chongming Regional Medical Consortium”，“One Nuclear，Two Wings，Three Meetings and One Support”（“1231”）and expounds the management and service mode of the medical conglomerate which adheres to the direction of public welfare，as well as the linkage reform of medical treatment，medical insurance and medicine，and the reform of the payment mode of medical insurance. We should leverage the coordinated reform of “responsibility，power and benefit” in the medical union，take the packaging and prepayment mechanism into action，improve the incentive and risk sharing mechanism of “balance retention，reasonable over expenditure sharing” and enhance the enthusiasm of self-management of medical institutions.