The COVID-19 has had a huge impact on all levels of medical and health service institutions. During the period，the level of financial compensation at the grassroots level has maintained a steady growth trend，and the medical service income has experienced a rapid growth and recovery. The expenditure level of personnel in local health service institutions has been steadily improved，and the growth of the number of personnel and the improvement of their professional qualifications have not been adversely affected. After the epidemic，the outpatient service volume at the grassroots level began to recover after a short fall，but the inpatient service volume continued to decline. Grassroots medical and health institutions undertake basic public health service and epidemic prevention and control task，and the proportion of public health expenditure has increased significantly. The economic condition of grass-roots institutions is generally in a state of negative surplus. The strengthening of the grass-roots medical and health system after the epidemic requires the multi-level reform of the health system to drive the improvement of the medical service capacity of grass-roots institutions，and establish a long-term mechanism of financial subsidies. The recovery of the economic condition of grassroots medical and health institutions also needs to support and encourage grassroots medical and health service institutions to innovate and upgrade service and broaden their financing channels，while strengthening the ability of cost control and promoting the coordinated use of financial and medical insurance funds to improve the efficiency of fund use.