firstly, it provides important financial support for the development of pharmaceutical industry. Generally speaking, the income of medical institutions mainly consists of three parts: medical insurance payment, patient payment and financial subsidy. Because financial subsidies have always been low in the income proportion of medical institutions, medical insurance and patient payment actually constitute the main income sources of designated medical institutions. Because medical insurance agreements usually restrict the proportion of self-payment and self-payment of insured patients, in a sense, the payment method of medical insurance directly determines the annual income of designated medical institutions under the realistic background of universal medical insurance, in which the medical insurance fund occupies a considerable share and is an important source of funds for the development of medical institutions. At the same time, with the full implementation of the centralized procurement of drugs and medical consumables and the continuous expansion of the scope of procurement, the medical insurance department is also playing an increasingly important leading role in the centralized procurement of drugs and medical consumables, which not only ensures the orderly promotion of procurement, but also ensures the timely withdrawal of enterprise payment. In particular, the state has made great efforts to promote the direct settlement between medical insurance funds and pharmaceutical enterprises, which has provided direct financial support for the development of pharmaceutical and medical consumables manufacturing enterprises.

the second is to promote designated medical institutions to improve the level of refined management. At the beginning of the implementation of social medical insurance system in China, most medical insurance departments at all levels adopted the payment method of item payment, which led to the uncontrolled and rapid growth of medical expenses, and the medical insurance fund quickly made ends meet, which seriously challenged the sustainability of the system. After years of exploration and practice, at present, a multi-compound medical insurance payment method is gradually formed, which is based on the total budget and mainly pays by disease. Its main feature is "package payment", that is, according to different medical scenes, different medical insurance payment units are formulated, specifically, according to single disease, DRGs, DIP, per head, bed day and per time, and the medical insurance settlement amount is determined according to the average medical resource consumption of each payment unit. Because the medical insurance payment method directly determines the annual income of each designated medical institution, in order to strive for as much as possible medical insurance fund settlement, each designated medical institution will inevitably adjust medical service behavior and optimize the allocation of medical resources around the baton of medical insurance payment method, thus promoting the continuous improvement of refined management level of each designated medical institution. This is the essence that medical insurance payment can guide and adjust medical service behavior.

the third is to boost the quality and efficiency of pharmaceutical and medical consumables manufacturers. With the continuous expansion of the scope of centralized mining and the continuous standardization of centralized mining, it will be a foreseeable development trend for drugs and medical consumables to implement "should be mined and exhausted". There are strict quality regulations to be included in the national centralized procurement catalogue, such as: either the original drug or the generic drug that has passed the consistency evaluation of quality and efficacy. Although it is said that based on the current reality in China, non-over-evaluated drugs are allowed to be centralized by local organizations, this is only a phased measure, not a long-term strategy, and it will inevitably develop in the direction of exhaustion in the future. Therefore, under the general trend of comprehensive centralized procurement of drugs and medical consumables, the survival and development of drug and medical consumables production enterprises is still based on product quality. For drug production enterprises, their products must at least pass the consistency evaluation of quality and efficacy. On the other hand, due to the strict quantity limitation of the bid-winning enterprises organized by the state to purchase with quantity, once the generic drugs and medical consumables manufacturers fail to bid, it means the loss of market share, and they must face great survival risks and development crises during the bidding period. From the micro level, the pattern of using all kinds of materials will encourage production enterprises to continuously improve their production management level, thus improving product quality and enhancing product market competitiveness; From a macro perspective, it will promote the differentiation, combination, transformation and upgrading of production enterprises, and gradually create a number of intensive, large-scale and highly competitive pharmaceutical and medical consumables production enterprises in the international market.