Starting from a brief introduction to the principle of DRG grouping，this report introduces the mechanism of DRG medical insurance payment，uses cases to emphasize the importance of correct writing of medical records and medical record homepages，and introduces DRGs in medical quality management，medical resource use，medical service efficiency，and medical service efficiency. The role of medical staff in areas such as performance evaluation. Using a large number of modern hospital management data and cases，it focuses on the comprehensive operation and management of hospitals under DRG：medical institutions should improve the organization of DRG implementation and clarify department responsibilities；medical management under DRG should pay attention to quality control and standard maintenance，Three main lines of analysis，evaluation and performance evaluation；to optimize the hospital’s revenue structure and strictly control drugs；rationally manage the use of medical consumables to reduce medical costs；scientifically manage clinical test projects under the DRG system；process reengineering and technological progress under DRG payment；Construct a comprehensive clinical path management system based on DRG. Finally，it is pointed out that the mechanism of DRG medical insurance payment for private hospitals and public hospitals is the same.