This paper summarizes the positive significance of non-profit private hospitals development , and an-alyzes the institutional obstacles on the development of non-profit private hospitals in terms of autonomous manage-ment, fair competition, investment and profit , tax relief, management and supervision .Finally, the paper provides some proposals to improve the development of non-profit private hospitals:revising the medical institution regulation , establishing and improving the non-profit private hospital assets finance management system , implementing the opera-tion system, establishing a scientific and standardized supervision mechanism , etc.