The conduction of performance appraisal in the hospital is of great significance to the perfection of the appraisal system and the improvement of the managerial efficiency of the hospital. The authors suggest that in the process of establishing an appraisal system of hospital performance, it is necessary to use for reference enterprises' experience in performance appraisal and the theories of performance management. Firstly, single-faceted pursuit of economic benefits should be avoided, the establishment of an external hospital appraisal system and the establishment of an internal hospital appraisal system should be combined, and attention should be paid to the overall application of performance appraisal in performance management. Secondly, in light of their own experience in hospital management, the authors put forward the suggestion of establishing a performance appraisal system of three levels: the hospital , the department and the post. They also argue that attention should be given to the selection of comprehensive appraisal methods, continuous communication about performance, and readjustment in a timely manner.