In this article, we summarize the main policy on encouraging nongovernmental investors to establish medical institutions in Wenzhou , Zhejiang Province.Based on the survey of private medical institutions in Wenzhou , we find that there are still many issues that should be resolved in terms of nongovernmental investors establishing pri -vate hospitals , such as the difficulty in implementing construction projects , spending too long time applying for the medical insurance unit , the complicated application procedures of incentive funds , the unequal status with public health hospitals in financing and the development of human resource for health , and the low-level administration and social reputation.Therefore , for promoting the sustainable development of private health hospitals , it is of great im-portance to have a breakthrough in the implementation of the policy ,such as supporting policies reform , financing and talent support , strengthening supervision , and so on.