In the context of Health China, integrate medical system based on the purpose of ‘health community’, the method of ‘division and cooperation’, the core of ‘cost management’, were different from the typical competitive medical system, which based on the purpose of ‘medical service’, the method of ‘competition and split’, the core of ‘business of water’. To establish the integrated medical system, the authorities should use the medical performance assessment as the baton, medical insurance pay way as the controller, cost accounting as the monitor, medical service price as the adjuster, balance the interest of demander, supplier and the third side, building and sharing the healthy community together. Hierarchical diagnosis and treatment is the phenomenon or the method of realizing integrated medical system, the result of optimizing health resource, the essence of health system reform is to build the integrated medical system