Objective To find out about the current state of development and existing problems in non governmental hospitals and to explore their development direction by collecting quantitative and qualitative data. Methods Investigations in the form of questionnaires were made into all the non governmental hospitals province wide and a descriptive analysis was made of the data collected. Results Non governmental hospitals in the province witnessed fast development, and yet they were generally small scaled, lacked actual strength, and were unevenly distributed, claiming only 3% of the market share; they paid special attention to the unique features of specialties and employed flexible operational modes, and yet they were still confronted with such problems as insufficient support policies from the government and personnel instability. Conclusion There is still a long way to go before the monopoly of state run hospitals is broken, diversified modes of hospital running are developed, and fair and orderly competition is formed so as to enhance the vitality of medical institutions. Administrative departments of health should fully realize the role and social functions of non governmental hospitals and actively lead their development in a healthy direction with sound policies.