ABSTRACT
The financial compensation mechanism for public county hospitals are discussed and analyzed in the paper.Such a mechanism is analyzed by means of media coverage and literature consulting,along with field survey.Roadblocks have been found in implementation of the mechanism, namely delayed payment of capital expenditure compensation,poor support for medical equipment purchase,gaps in development key disciplines development,insufficient compensation for retirees expenses,poor definition of policy-incurred losses,and unclear compensation of public health services.in a word,it is imperative to change the unreasonable financial compensation mechanism,before the six financial compensation subsidies can be fully put in place and financial compensation made efficiently.