ABSTRACT
Secondary hospitals play a pivotal role and serve as a link in the medical service system in China. However, at present, large general hospitals are still siphoning down resources, primary medical institutions are developing rapidly, and private medical institutions join the medical market competition. In this case, to survive and develop, the secondary hospitals should choose corresponding policies and measures according to the characteristics of each region, such as, the secondary hospitals in remote and backward county should reduce medical expenses, increase reimbursement ratio and strengthen financial compensation, urban secondary hospitals with mature conditions should strengthen the function of medical and nursing care or transform and upgrade to tertiary hospitals or integrate into the medical consortiums.