OBJECTIVE:To discuss the issue of medical institution's pharmaceuticals purchase by public bidding and so as to put forward some improvement measures.METHODS:The problem in the pharmaceuticals purchase by public bidding sys?tem was analyzed by the governmental management theory.RESULTS&CONCLUSION:The pharmaceutical purchase by public bidding system was far from perfect which were highlighted in the high cost of governmental management,over-burden of bidding factories,financial loses of medical institutions,and chaos of medicine pricing management.The governmental pricing system should be regulated,the medical reform systems should be speed up,and the efficiency of governmental man?agement should be improved.