In light of modern management theories and the actual situation in the hospital, a post and performance based hospital compensation system was designed. The chief features of the design include: ① Compensation consists mainly of post salary and performance salary while giving expression to the principle of stability and gradual transition, with the fixed part (accounting for about 60%) of the original file salary being retained; ②Post salaries fall under a hospital wide unified grade compensation framework, with grade evaluations based on a hospital wide unified system of indexes and weight, and they go up or down within the salary width each year according to the results of performance assessment; ③ Performance salaries are closely linked with post grades and performance assessment, with a hospital wide unified model of post and performance contracts being the basis for assessment; ④ The entire compensation design is based on scientific and standard post surveys, post appraisals and post specifications.