Abstract: With the development of private hospitals,the marketing competition that the public hospitals faced is more and more hardly.They have to improve their financial management and promote their financial efficiency for not being eliminated.The proper rates are very important on how can we evaluate a hospital′s financial management.In this paper,the author used the Return on equity as the core rate because of its typical and detachable.According to public hospital′ difference from a corporation,some data should be adjusted while calculating return on equity.Return on equity is a good rate to evaluate financial management,with limit,it also needs to be upgraded.