The increasing reform of diagnosis-related groups (DRG) healthcare payment plays a crucial role in the reform of the medical and healthcare system, accelerating the high-quality development of public hospitals and serving as a critical path for their reform. The innovation of DRG healthcare payment methods can balance the financial income and expenditure of public hospitals, while also achieving a more harmonized balance of interests among hospitals, patients, and health insurance. This reform effectively controls the operating costs of hospitals, strictly regulates medical behaviors and quality management, and optimizes the patient treatment process. To quickly adapt to this reform trend, public hospitals need to seize the opportunities of healthcare system reform, adopt corresponding strategies to address the impact of DRG payment reform and achieve their own sustainable development goals in health.