Hospitals are currently confronted with many problems, including distribution according to the division of administrative areas and jurisdiction; construction with complete sets of facilities on the part of all hospitals,big or small; and worsening of the unbalanced allocation of health resources due to the to assumption by big hospitals of many tasks of bssic-level hospitals. Besides, the excessively speedy incresse of expenses for outpatient and inpatient services as a result of hospitals' introduction of high technologies has inhibited some people's demands for medical services and competition among hospitals will become particularly fierce. Thus, ways out for hospitals lie in clarifion of their respective functions and development according to regional planning; regrouping of health resources by the government through measures of shutting down,stopping down, sopping production, merging, changing products or moving to other sites; structural readjustment and implementation of the system of responsibility by hospital directors within hospitals;bringing into play the initiatives of middle-level cadres; establishment of a scientific mechanism for personnel employmennt and selection; giving priority to efficiency and consideration to fairness in distribution; improvement of service quality; and making a good job of rational charging.