Abstract: Amid challenges of an aging society and sustainable healthcare financing， DRG serves not only as a payment management tool but also encompasses budget management and healthcare quality control， forming a comprehensive suite of healthcare management tools. However， further exploration of DRG's potential， stimulating intrinsic motivations， and maximizing its positive incentive effects require continuous exploration and implementation. This paper discusses several aspects including standardization of clinical practices， localization of guidelines， minimization of iatrogenic harm， and popularization of economic evaluations. It emphasizes optimizing clinical pathways， standardizing medical practices， and balancing the challenges and opportunities of cost control and clinical innovation under the DRG payment model.