Since the year 2003, the basic medical insurance, and number of doctors and beds and hospitalization rate were increased steadily as a whole, while the economic burden of disease has not reduced and the degree of health improvement is limited. Health service system is a complex and dynamic system and there are structural frictions between each elements and subsystems. The negative frictions between our medical service supply system and medical insurance system is that medical service isolates from medical insurance and the management targets is inconsistent; insurance system attaches great importance to the payment of individual institutions, but despised the guide of service system design. Giving a suggestion that insurance payment reform in future should attach more importance to the system and health.