Objective: To analyze the methods of Lishui Central Hospitals performance management, and evaluate the important role of performance management in the modern hospital management. Methods:Evaluate the hospital operation management data in recent 5 years, basing on the performance management measures of Lishui Central Hospital. Results: During 2007 to 2012, outpatients and emergency patients increased to 80.41%, discharges increased to 89.35%, operating table increased to 84.59%, total revenue increased to 121.61%, average length of stay decreased by 5.1 days, times cost of patients had been effectively controlled, and total assets increased by 149.21%. Conclusion: The reform of Central Hospital performance management has great significance in mobilizing the enthusiasm of workers and enhancing the level of hospital management, and will solve the difficulties of expensive medical treatment problems well.