Objective: To analyze the change of the operation status of the secondary and tertiary hospitals in Beijing after the implementation of the global budget of medical insurance, and to explore the effect of the global budget on different levels of hospitals, find prob lems and make recommendations. Methods: The data comes from Beijing Health Work Statistics Collection (2007-2014), and we employ descriptive statistics and fixed effect models to analyze the data. Results: The global budget of medical insurance effectively controlled the drug revenues proportion and the average cost of secondary and tertiary hospitals, and the cost control effect of tertiary hospitals was better than that of secondary hospitals, but it was difficult to control service volume s of tertiary ho spitals. The fixed effect model showed that the global budget of medical insurance can control the secondary hospital service revenues, but has no effect on the tertiary hospital service revenues. Conclusion: The global budget of medical insurance has some positive effect s on hospital performances in Beijing, but it is difficult to control tertiary hospital service revenues. Hierarchical medical system is needed in China and the amounts of global budget should be calculated carefully.