Abstract: Public health is directly related to medical issue. It is necessary for Chinese medical system to conduct a deep reform. In order to fulfill public medical requirement better, reform of medical insurance system, public sanitation system,and medical production and circulation system should be carried out in parallel. Key points of Chinese medical reform are: allocating medical resources properly, setting up different levels of medical institutes for different patients, adjusting medical service price,forming reasonable hospital compensation system, and introducing competition to enhance provision of medical resources.