In 2014，China’s new healthcare reform has entered its sixth year. The total amount of public health resource and service keeps rising，and the amount of government spending continues to increase，where individual medical expenditure decreases in the total medical expenditure. However，medical spending is not fully under control. Privately owned hospitals experienced fast expanding，but resources and service at the grassroots level are still lower than expectation. The central issue of medical and health reform is public hospitals reform. Currently，public hospitals reform is at its tentative and experimental stage. And most reform plan is carried out at local level without a national framework. The collaboration of three areas—medical treatment，medicine，medical insurance—has led to the integration of medical insurance system and public hospitals reform. However，at the current stage，in order to meet the complexity of the whole medical system，it is necessary to make new progress in medicine pricing，medical service pricing in public hospitals，and medical insurance to implement the initial goal of medical reform for both sub-system reform and the overall reform agenda.