Since China’s reform and opening up，great changes have taken place in our health care system. As the main body of the medical service system，public hospitals also have experienced great changes，their social roles and function orientation go through several adjustments and changes，and their operating mechanism has taken place great changes. In essence，public hospitals have gone from state-owned organizations in the planned economy period，which serve public and pursue public welfare social goal，into the quasi-market organization pursing commercial interests and economic benefit，in addition to continue to maintain the state identity，their operating behavior already have the characteristics of the market and have a certain monopoly. In this context，the new round of reform identifies the reform of public hospitals as “One of the Five Key Tasks”. From the micro level，the development and reform of public hospitals is directly related to the solution of “the difficulty and costliness of medical service”；Related to the whole advancement process of the reform；In relation to the all-round development of the medical staff and public hospitals’ own development. From the macroscopic level，public hospitals also assume the role of pathfinder of institution reform，and play the important exemplary role in exploring the implementation path of innovation of social management.