Abstract:Discussions in terms of spending control-based payment methods were raised upon the rapid increase of medical expenditure in recent years, and Diagnosis Related Groups (DRGs) has been considered as one of the most promising choices among the blending payment mechanisms. In recent decade, an efficient DRGs-based payment model in Xi County had been established with potential of generalizability. In this model, three features were included: the medical services were purchased through government contracts, the reimbursement amount was pre-decided with classification and severity of diseases, and the performance evaluation was quality-oriented. The core strategy of the multi-faceted payment reform was that the payment was based on a clear classification of clinical pathways and quality-oriented process supervision. During the study, we firstly made a systematical analysis about the theory basis of DRGs; then we proposed the prerequisites for generalizing the Xi County multi-faceted payment model by revealing the context and current progress of Xi County reform; finally we discussed the transition of role concerning different stakeholders including the medical insurance administrators, the health administrators, the medical institutions and the providers. We conclude that the Xi County model may contribute to completing the comprehensive reforms in rural communities and promoting the hierarchical medical system.