Improving the centralized procurement of drugs in public hospitals is an important content and key link of deepening medical reform, and new demands for centralized drug purchasing in the province as a unit have been made. Taking Zhejiang Province as an example, introduces the background of the management about the drug procurement funds flow, innovation, focus and effectiveness, analyses the resulting impact on public hospitals, pharmaceutical enterprises and so on, at last, expounds the capital flow management problems and improvement measures.