The compensation system of public hospitals in China fails to fully reflect the characteristics of the industry and the value orientation of knowledge. Based on the outer justice, inner justice and individual justice of the equity theory, from the perspective of the reform of the compensation system of public hospitals, this study puts forward specific policy recommendations, include rationally determine the salary level of public hospitals, optimize the salary structure of public hospitals, implement the autonomy of public hospitals, and comprehensively promote the reform of personnel system