Abstract:The continued release of demand for medical services has stimulated the development of public hospitals,in the context of insufficient government financial subsidies and inadequate hospital funds,part of the public hospitals to seek market-oriented financing support,but the contradiction between the nonprofit nature of public hospitals and the profitability nature of capital makes the process of public hospital financing into a dilemma.Through the analysis of the connotation of public welfare in public hospitals and cases of PPP projects found that nonprofit of public hospitals does not completely exclude the profitability of capital,the market competition mechanism that capital profit behavior relies on is a prerequisite for the realization of the public welfare nature of public hospitals.Taking full advantage of market-oriented financing methods on the basis of insisting on the public welfare of public hospitals the following measures must be taken:Firstly, adhere to the government in the direction of public hospitals in the dominant position;Secondly, in the introduction of capital, focusing on the reform and innovation of operational mechanisms;Thirdly, convert the dividends that belong to the government into continued investment in public hospitals to support the realization of public welfare;Fourth, combined with the local government financial resources using differentiated financing model.