Abstract: Based on the current ambiguities surrounding the ownership and management of Chinese hospitals, this paper analyzed those two questions according to the property right theory as proposed in New Institutional Economics. The one is the affection of irrational structure of hospital's property right on the efficiency of the medical treatment market, and the other is the contrast of two different management purposes of hospitals. Through the analysis, some conclusions have been made, such as: the diversification of management purpose is very effective to ensure both of high-quality and high-efficiency of medical service; the diversification of property right is the results of the diversification of management purposes. Moreover, the paper proposes some suggestions concerning the innovation of hospitals'property rights.